Analysts' ratings for Reddit (NYSE:RDDT) over the last quarter vary from bullish to bearish, as provided by 18 analysts.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 8 | 4 | 4 | 2 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 1 | 1 | 2 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 6 | 3 | 2 | 1 | 0 |
Analysts have set 12-month price targets for Reddit, revealing an average target of $64.61, a high estimate of $84.00, and a low estimate of $45.00. This current average has increased by 14.7% from the previous average price target of $56.33.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Reddit is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Mark Shmulik | Bernstein | Raises | Underperform | $50.00 | $45.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $84.00 | $70.00 |
| Doug Anmuth | JP Morgan | Raises | Neutral | $67.00 | $57.00 |
| Alan Gould | Loop Capital | Maintains | Hold | $75.00 | $75.00 |
| Alan Gould | Loop Capital | Raises | Buy | $75.00 | $60.00 |
| Laura Martin | Needham | Raises | Buy | $75.00 | $63.00 |
| Laura Martin | Needham | Maintains | Buy | $63.00 | $63.00 |
| Andrew Boone | JMP Securities | Maintains | Market Outperform | $63.00 | $63.00 |
| Ronald Josey | Citigroup | Raises | Buy | $70.00 | $65.00 |
| Ben Black | Deutsche Bank | Raises | Buy | $65.00 | $62.00 |
| Eric Sheridan | Goldman Sachs | Raises | Neutral | $55.00 | $40.00 |
| Ronald Josey | Citigroup | Raises | Buy | $65.00 | $53.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $63.00 | $53.00 |
| Rohit Kulkarni | Roth MKM | Raises | Buy | $61.00 | $50.00 |
| Mark Shmulik | Bernstein | Raises | Underperform | $45.00 | $40.00 |
| Laura Martin | Needham | Raises | Buy | $63.00 | $55.00 |
| Colin Sebastian | Baird | Raises | Neutral | $59.00 | $50.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $65.00 | $50.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Reddit. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Reddit's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Reddit analyst ratings.
All You Need to Know About Reddit
Reddit Inc is engaged in providing internet content. The company provides online services that include gaming, sports, business, crypto, television and others.
Understanding the Numbers: Reddit's Finances
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Reddit showcased positive performance, achieving a revenue growth rate of 48.38% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: Reddit's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -236.69% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Reddit's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -80.69%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Reddit's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -31.84%, the company may face hurdles in generating optimal returns from its 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.
What Are Analyst Ratings?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.