Morgan Stanley Upgrades Reddit (NYSE:RDDT) to “Overweight”

Reddit (NYSE:RDDT) was upgraded by Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research note issued on Monday, Marketbeat.com reports. The brokerage presently has a $200.00 price target on the stock, up from their previous price target of $70.00. Morgan Stanley’s target price suggests a potential upside of 28.39% from the company’s previous close.

RDDT has been the topic of a number of other research reports. Sanford C. Bernstein increased their price target on Reddit from $65.00 to $85.00 and gave the company an “underperform” rating in a research note on Wednesday, October 30th. JMP Securities increased their target price on Reddit from $118.00 to $160.00 and gave the company a “market outperform” rating in a research note on Monday, November 25th. The Goldman Sachs Group boosted their target price on Reddit from $60.00 to $68.00 and gave the stock a “neutral” rating in a research report on Monday, October 14th. Citigroup upped their price target on Reddit from $70.00 to $120.00 and gave the company a “buy” rating in a research note on Wednesday, October 30th. Finally, Bank of America lifted their price objective on shares of Reddit from $84.00 to $99.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 30th. One analyst has rated the stock with a sell rating, five have issued a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $110.39.

Reddit Stock Down 6.8 %

Shares of RDDT opened at $155.78 on Monday. The stock’s fifty day simple moving average is $110.31 and its 200-day simple moving average is $78.53. Reddit has a 12-month low of $37.35 and a 12-month high of $180.74.

Reddit (NYSE:RDDT) last released its earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.23. The company had revenue of $348.40 million for the quarter, compared to the consensus estimate of $313.61 million. Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54%. Reddit’s revenue was up 67.9% on a year-over-year basis. As a group, sell-side analysts predict that Reddit will post -3.54 EPS for the current year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 33,333 shares of the company’s stock in a transaction that occurred on Monday, September 16th. The stock was sold at an average price of $59.18, for a total value of $1,972,646.94. Following the sale, the chief operating officer now owns 1,542,457 shares in the company, valued at $91,282,605.26. This represents a 2.12 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction on Friday, November 29th. The shares were sold at an average price of $141.79, for a total value of $1,985,060.00. Following the sale, the chief executive officer now directly owns 634,971 shares of the company’s stock, valued at $90,032,538.09. This represents a 2.16 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 325,644 shares of company stock worth $31,195,790.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Wilmington Savings Fund Society FSB acquired a new position in shares of Reddit in the third quarter valued at about $3,929,000. Sanctuary Advisors LLC bought a new position in Reddit in the third quarter valued at about $144,000. SOA Wealth Advisors LLC. increased its position in Reddit by 56.3% during the 3rd quarter. SOA Wealth Advisors LLC. now owns 1,919 shares of the company’s stock worth $126,000 after purchasing an additional 691 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Reddit by 176.0% during the third quarter. Geode Capital Management LLC now owns 824,200 shares of the company’s stock worth $54,355,000 after buying an additional 525,619 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new position in Reddit in the third quarter valued at about $495,000.

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.