Reddit (NYSE:RDDT) Cut to “Hold” at Roth Capital

Roth Capital lowered shares of Reddit (NYSE:RDDT) from a strong-buy rating to a hold rating in a research report report published on Wednesday morning,Zacks.com reports. Roth Capital also issued estimates for Reddit’s Q4 2024 earnings at $0.31 EPS, FY2024 earnings at ($3.48) EPS, Q1 2025 earnings at ($0.02) EPS, Q2 2025 earnings at $0.08 EPS, Q3 2025 earnings at $0.29 EPS, Q4 2025 earnings at $0.57 EPS, FY2025 earnings at $0.94 EPS and FY2026 earnings at $2.22 EPS.

Several other brokerages have also recently weighed in on RDDT. Citigroup increased their price target on Reddit from $120.00 to $200.00 and gave the company a “buy” rating in a research note on Friday, December 20th. Wells Fargo & Company initiated coverage on Reddit in a research report on Wednesday, December 11th. They set an “overweight” rating and a $206.00 target price on the stock. Robert W. Baird upped their target price on Reddit from $100.00 to $160.00 and gave the company a “neutral” rating in a research report on Wednesday, December 11th. Raymond James upped their target price on Reddit from $150.00 to $200.00 and gave the company a “strong-buy” rating in a research report on Tuesday. Finally, Bank of America upped their target price on Reddit from $99.00 to $180.00 and gave the company a “neutral” rating in a research report on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $158.20.

Reddit Price Performance

Shares of RDDT stock opened at $182.24 on Wednesday. The stock has a 50-day moving average of $162.23 and a 200-day moving average of $103.46. Reddit has a 1-year low of $37.35 and a 1-year high of $191.00.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.23. The company had revenue of $348.40 million during the quarter, compared to analysts’ expectations of $313.61 million. Reddit had a negative return on equity of 40.54% and a negative net margin of 47.83%. The company’s revenue was up 67.9% on a year-over-year basis. Research analysts expect that Reddit will post -3.48 earnings per share for the current year.

Insider Activity

In other news, COO Jennifer L. Wong sold 33,334 shares of the firm’s stock in a transaction that occurred on Thursday, January 16th. The stock was sold at an average price of $173.93, for a total value of $5,797,782.62. Following the transaction, the chief operating officer now owns 1,504,297 shares in the company, valued at $261,642,377.21. This trade represents a 2.17 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Christopher Brian Slowe sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 22nd. The shares were sold at an average price of $184.15, for a total value of $920,750.00. Following the completion of the transaction, the chief technology officer now owns 35,252 shares in the company, valued at $6,491,655.80. This represents a 12.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 264,357 shares of company stock worth $40,449,488 over the last 90 days.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently modified their holdings of the business. Ridgewood Investments LLC increased its position in shares of Reddit by 100.0% during the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after acquiring an additional 100 shares during the last quarter. Spire Wealth Management purchased a new stake in shares of Reddit during the fourth quarter valued at approximately $35,000. Blue Trust Inc. purchased a new stake in shares of Reddit during the fourth quarter valued at approximately $59,000. New Wave Wealth Advisors LLC purchased a new stake in shares of Reddit during the fourth quarter valued at approximately $69,000. Finally, Whittier Trust Co. purchased a new stake in shares of Reddit during the third quarter valued at approximately $42,000.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.