Reddit (NYSE:RDDT) Trading Up 7.1% – Here’s Why

Reddit Inc. (NYSE:RDDT)’s share price traded up 7.1% during trading on Wednesday . The company traded as high as $151.63 and last traded at $154.8550. Approximately 661,689 shares were traded during trading, a decline of 88% from the average daily volume of 5,477,578 shares. The stock had previously closed at $144.64.

Wall Street Analyst Weigh In

RDDT has been the topic of a number of recent research reports. DA Davidson reiterated a “buy” rating and set a $200.00 price target on shares of Reddit in a research note on Thursday, July 23rd. Telsey Advisory Group set a $240.00 price objective on shares of Reddit in a research note on Friday, July 31st. Needham & Company LLC restated a “buy” rating and issued a $300.00 price objective on shares of Reddit in a report on Wednesday, June 24th. Wedbush cut their target price on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating on the stock in a research note on Friday, July 31st. Finally, KeyCorp assumed coverage on shares of Reddit in a report on Wednesday, July 29th. They set an “overweight” rating and a $225.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average price target of $221.10.

Reddit Stock Up 6.3%

The company’s fifty day moving average is $170.91 and its two-hundred day moving average is $158.53. The stock has a market cap of $29.57 billion, a price-to-earnings ratio of 35.94, a PEG ratio of 0.49 and a beta of 2.02.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $804.91 million during the quarter, compared to analysts’ expectations of $731.00 million. During the same quarter in the previous year, the business posted $0.45 EPS. The firm’s revenue was up 61.0% on a year-over-year basis. Sell-side analysts predict that Reddit Inc. will post 5.27 EPS for the current fiscal year.

Insiders Place Their Bets

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the sale, the chief accounting officer directly owned 15,060 shares in the company, valued at $3,012,000. This trade represents a 5.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of Reddit stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, the director directly owned 27,087 shares of the company’s stock, valued at $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 192,102 shares of company stock worth $33,710,892. 28.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Several institutional investors have recently added to or reduced their stakes in the business. Evansbrook LLC boosted its holdings in Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after purchasing an additional 59 shares in the last quarter. Signaturefd LLC raised its holdings in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after purchasing an additional 62 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares during the last quarter. Florida Financial Advisors LLC lifted its position in shares of Reddit by 6.7% during the 4th quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company’s stock worth $250,000 after buying an additional 68 shares during the last quarter. Finally, Diversified Trust Co boosted its holdings in shares of Reddit by 2.1% in the 1st quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock valued at $440,000 after buying an additional 68 shares in the last quarter.

About Reddit

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.