26 analysts have expressed a variety of opinions on Reddit (NYSE:RDDT) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 9 | 6 | 0 | 1 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 2 | 2 | 3 | 0 | 0 |
| 2M Ago | 3 | 2 | 0 | 0 | 1 |
| 3M Ago | 4 | 5 | 3 | 0 | 0 |
Analysts have set 12-month price targets for Reddit, revealing an average target of $175.46, a high estimate of $250.00, and a low estimate of $75.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 10.31%.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of Reddit by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Laura Martin | Needham | Raises | Buy | $145.00 | $135.00 |
| Brian Nowak | Morgan Stanley | Lowers | Overweight | $140.00 | $210.00 |
| Ronald Josey | Citigroup | Lowers | Buy | $150.00 | $220.00 |
| Eric Sheridan | Goldman Sachs | Lowers | Neutral | $124.00 | $185.00 |
| Thomas Champion | Piper Sandler | Lowers | Overweight | $140.00 | $220.00 |
| Justin Post | B of A Securities | Lowers | Neutral | $110.00 | $190.00 |
| Doug Anmuth | JP Morgan | Lowers | Neutral | $110.00 | $185.00 |
| Youssef Squali | Truist Securities | Announces | Buy | $150.00 | - |
| Ken Gawrelski | Wells Fargo | Lowers | Overweight | $158.00 | $215.00 |
| Devin Ryan | JMP Securities | Lowers | Market Outperform | $155.00 | $200.00 |
| Laura Martin | Needham | Maintains | Buy | $220.00 | $220.00 |
| Michael Morris | Guggenheim | Lowers | Buy | $170.00 | $210.00 |
| James Cordwell | Redburn Atlantic | Announces | Sell | $75.00 | - |
| Josh Beck | Raymond James | Lowers | Strong Buy | $200.00 | $250.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $220.00 | $210.00 |
| Alan Gould | Loop Capital | Raises | Buy | $210.00 | $180.00 |
| Brian Nowak | Morgan Stanley | Raises | Overweight | $210.00 | $200.00 |
| Ronald Josey | Citigroup | Raises | Buy | $220.00 | $200.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $210.00 | $197.00 |
| Doug Anmuth | JP Morgan | Raises | Neutral | $185.00 | $142.00 |
| Ken Gawrelski | Wells Fargo | Raises | Overweight | $215.00 | $206.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $200.00 | $190.00 |
| Justin Post | B of A Securities | Raises | Neutral | $190.00 | $180.00 |
| Laura Martin | Needham | Raises | Buy | $220.00 | $190.00 |
| Colin Sebastian | Baird | Raises | Neutral | $185.00 | $160.00 |
| Josh Beck | Raymond James | Raises | Strong Buy | $250.00 | $200.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Reddit. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Reddit compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Reddit's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Reddit's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Reddit analyst ratings.
Delving into Reddit's Background
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines. Reddit generates revenue through advertising, Premium Memberships, and data licensing agreements.
Breaking Down Reddit's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Positive Revenue Trend: Examining Reddit's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 71.25% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Net Margin: Reddit's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 16.61% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Reddit's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.46%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 3.15%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.01, Reddit adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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