In the latest quarter, 21 analysts provided ratings for Reddit RDDT, showcasing a mix of bullish and bearish perspectives.
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 | 14 | 3 | 3 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 9 | 2 | 1 | 1 | 0 |
| 2M Ago | 4 | 0 | 2 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $98.62, along with a high estimate of $150.00 and a low estimate of $68.00. This upward trend is apparent, with the current average reflecting a 25.84% increase from the previous average price target of $78.37.
Decoding Analyst Ratings: A Detailed Look
The standing of Reddit among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Thomas Champion | Piper Sandler | Raises | Overweight | $150.00 | $115.00 |
| Mark Shmulik | Bernstein | Raises | Underperform | $85.00 | $65.00 |
| Ronald Josey | Citigroup | Raises | Buy | $120.00 | $70.00 |
| Alan Gould | Loop Capital | Raises | Buy | $120.00 | $90.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $118.00 | $84.00 |
| Rohit Kulkarni | Roth MKM | Raises | Buy | $116.00 | $89.00 |
| Naved Khan | B. Riley Securities | Raises | Buy | $112.00 | $87.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $115.00 | $70.00 |
| Justin Post | B of A Securities | Raises | Neutral | $99.00 | $84.00 |
| Laura Martin | Needham | Raises | Buy | $120.00 | $85.00 |
| Alan Gould | Loop Capital | Raises | Buy | $90.00 | $80.00 |
| Rohit Kulkarni | Roth MKM | Raises | Buy | $89.00 | $66.00 |
| John Colantuoni | Jefferies | Raises | Buy | $100.00 | $90.00 |
| Naved Khan | B. Riley Securities | Raises | Buy | $87.00 | $75.00 |
| Eric Sheridan | Goldman Sachs | Raises | Neutral | $68.00 | $60.00 |
| Josh Beck | Raymond James | Raises | Strong Buy | $80.00 | $70.00 |
| John Colantuoni | Jefferies | Announces | Buy | $90.00 | - |
| Laura Martin | Needham | Raises | Buy | $85.00 | $75.00 |
| Doug Anmuth | JP Morgan | Raises | Neutral | $77.00 | $59.00 |
| Naved Khan | B. Riley Securities | Announces | Buy | $75.00 | - |
| Laura Martin | Needham | Maintains | Buy | $75.00 | $75.00 |
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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Reddit compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
To gain a panoramic view of Reddit's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Reddit analyst ratings.
Unveiling the Story Behind Reddit
Reddit Inc is engaged in providing internet content. The company provides online services that include gaming, sports, business, crypto, television and others.
Reddit: A Financial Overview
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Reddit's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 67.87% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: Reddit's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 8.57%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Reddit's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.54% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.41%, the company showcases effective utilization of assets.
Debt Management: Reddit's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.
The Basics of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically 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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This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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