Royal Bank of Canada Initiates Coverage on Reddit (NYSE:RDDT)

Research analysts at Royal Bank of Canada assumed coverage on shares of Reddit (NYSE:RDDT) in a research note issued on Tuesday, Marketbeat.com reports. The brokerage set a “sector perform” rating and a $125.00 price target on the stock. Royal Bank of Canada’s target price would indicate a potential upside of 5.69% from the stock’s previous close.

RDDT has been the topic of a number of other reports. Redburn Atlantic assumed coverage on shares of Reddit in a research note on Monday, March 17th. They set a “sell” rating and a $75.00 target price on the stock. Wall Street Zen lowered shares of Reddit from a “buy” rating to a “hold” rating in a research note on Friday, May 30th. Bank of America cut their target price on shares of Reddit from $190.00 to $110.00 and set a “neutral” rating on the stock in a research note on Wednesday, April 9th. Raymond James cut their target price on shares of Reddit from $250.00 to $200.00 and set a “strong-buy” rating on the stock in a research note on Wednesday, March 12th. Finally, JPMorgan Chase & Co. cut their target price on shares of Reddit from $185.00 to $110.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 8th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $139.78.

Reddit Price Performance

Shares of NYSE:RDDT opened at $118.27 on Tuesday. The firm has a market capitalization of $21.82 billion, a PE ratio of -15.30, a price-to-earnings-growth ratio of 4.72 and a beta of 2.90. The firm’s 50-day moving average is $106.30 and its two-hundred day moving average is $143.93. Reddit has a 1 year low of $49.13 and a 1 year high of $230.41.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.11. The company had revenue of $392.36 million for the quarter, compared to analyst estimates of $370.55 million. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The business’s revenue for the quarter was up 61.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($8.19) earnings per share. Analysts expect that Reddit will post 1.12 EPS for the current fiscal year.

Insider Activity

In other news, Director David C. Habiger acquired 774 shares of the firm’s stock in a transaction dated Wednesday, March 12th. The stock was acquired at an average cost of $130.36 per share, with a total value of $100,898.64. Following the completion of the acquisition, the director now owns 30,808 shares of the company’s stock, valued at $4,016,130.88. The trade was a 2.58% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Steve Ladd Huffman sold 124,408 shares of the stock in a transaction that occurred on Friday, March 14th. The shares were sold at an average price of $127.36, for a total value of $15,844,602.88. Following the completion of the sale, the chief executive officer now directly owns 583,515 shares of the company’s stock, valued at $74,316,470.40. The trade was a 17.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 677,875 shares of company stock valued at $76,732,994.

Institutional Investors Weigh In On Reddit

Several hedge funds have recently modified their holdings of the stock. FMR LLC lifted its holdings in shares of Reddit by 7.5% during the fourth quarter. FMR LLC now owns 13,070,780 shares of the company’s stock worth $2,136,288,000 after purchasing an additional 913,189 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Reddit by 11.1% during the first quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company’s stock worth $1,069,828,000 after purchasing an additional 1,017,162 shares during the period. Alliancebernstein L.P. lifted its holdings in shares of Reddit by 103.0% during the first quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company’s stock worth $593,733,000 after purchasing an additional 2,871,232 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Reddit by 10.6% during the first quarter. T. Rowe Price Investment Management Inc. now owns 4,073,939 shares of the company’s stock worth $427,357,000 after purchasing an additional 389,761 shares during the period. Finally, JPMorgan Chase & Co. lifted its holdings in shares of Reddit by 98.2% during the first quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company’s stock worth $200,096,000 after purchasing an additional 944,847 shares during the period.

About Reddit

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.