Bank of America Issues Pessimistic Forecast for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price objective dropped by research analysts at Bank of America from $205.00 to $175.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Bank of America‘s price target would suggest a potential upside of 28.62% from the stock’s previous close.

A number of other equities research analysts have also recently weighed in on the stock. Argus set a $300.00 price target on shares of Reddit in a research report on Friday, January 9th. Zacks Research cut shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Guggenheim lifted their target price on shares of Reddit from $245.00 to $255.00 and gave the company a “buy” rating in a report on Friday, February 6th. Evercore reissued an “outperform” rating and issued a $290.00 target price on shares of Reddit in a research report on Friday, February 6th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $285.00 price target on shares of Reddit in a research note on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $240.85.

Reddit Stock Performance

RDDT opened at $136.06 on Thursday. The stock has a market capitalization of $25.99 billion, a PE ratio of 51.93, a P/E/G ratio of 0.99 and a beta of 2.40. Reddit has a one year low of $79.75 and a one year high of $282.95. The business’s 50 day moving average price is $147.02 and its 200 day moving average price is $194.66.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The company had revenue of $725.61 million during the quarter, compared to analysts’ expectations of $665.80 million. During the same quarter last year, the firm earned $0.36 earnings per share. The firm’s quarterly revenue was up 69.7% compared to the same quarter last year. As a group, equities research analysts forecast that Reddit will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Benjamin Seong Lee sold 27,930 shares of Reddit stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $260.08, for a total value of $7,264,034.40. Following the completion of the transaction, the insider owned 62,608 shares in the company, valued at approximately $16,283,088.64. The trade was a 30.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Jennifer L. Wong sold 33,507 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $143.41, for a total transaction of $4,805,238.87. Following the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $156,094,757.91. The trade was a 2.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have bought 61,000 shares of company stock valued at $8,870,815 and have sold 355,078 shares valued at $63,644,203. 34.25% of the stock is owned by company insiders.

Institutional Trading of Reddit

A number of large investors have recently modified their holdings of the stock. Raiffeisen Bank International AG acquired a new position in Reddit during the 3rd quarter worth $25,000. GW&K Investment Management LLC acquired a new stake in Reddit in the 3rd quarter valued at about $30,000. Cornerstone Planning Group LLC raised its position in Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after purchasing an additional 135 shares in the last quarter. LOM Asset Management Ltd purchased a new position in shares of Reddit in the 4th quarter valued at about $33,000. Finally, Noble Wealth Management PBC purchased a new position in shares of Reddit in the 4th quarter valued at about $34,000.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.