Reddit (NYSE:RDDT) Shares Gap Up – What’s Next?

Reddit Inc. (NYSE:RDDT) shares gapped up before the market opened on Friday . The stock had previously closed at $200.92, but opened at $212.02. Reddit shares last traded at $206.97, with a volume of 2,640,263 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RDDT. Morgan Stanley lifted their target price on shares of Reddit from $170.00 to $230.00 and gave the stock an “overweight” rating in a research report on Friday, August 1st. Weiss Ratings restated a “hold (c-)” rating on shares of Reddit in a research report on Saturday, September 27th. Citigroup restated an “outperform” rating on shares of Reddit in a research report on Thursday, September 18th. JMP Securities restated a “market outperform” rating and set a $300.00 target price on shares of Reddit in a research report on Friday. Finally, Zacks Research cut shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $201.58.

Reddit Stock Up 3.1%

The firm has a market capitalization of $38.79 billion, a PE ratio of 188.40, a P/E/G ratio of 3.26 and a beta of 2.23. The business’s fifty day moving average price is $224.76 and its 200 day moving average price is $156.56.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. Reddit had a net margin of 12.97% and a return on equity of 9.93%. The company’s quarterly revenue was up 77.9% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.06) earnings per share. Reddit has set its Q3 2025 guidance at EPS. As a group, sell-side analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Transactions at Reddit

In related news, CTO Christopher Brian Slowe sold 14,000 shares of the business’s stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $257.28, for a total value of $3,601,920.00. Following the completion of the sale, the chief technology officer directly owned 208,534 shares in the company, valued at approximately $53,651,627.52. The trade was a 6.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 30th. The shares were sold at an average price of $229.10, for a total transaction of $4,123,800.00. Following the completion of the sale, the chief executive officer owned 494,104 shares of the company’s stock, valued at approximately $113,199,226.40. The trade was a 3.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 397,834 shares of company stock valued at $86,512,599 in the last quarter. Insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC grew its holdings in Reddit by 8,650.0% in the third quarter. GAMMA Investing LLC now owns 175 shares of the company’s stock valued at $40,000 after purchasing an additional 173 shares during the period. Roxbury Financial LLC acquired a new position in Reddit during the third quarter valued at approximately $199,000. Vigilare Wealth Management acquired a new position in Reddit during the third quarter valued at approximately $594,000. Praxis Investment Management Inc. lifted its position in Reddit by 129.5% during the third quarter. Praxis Investment Management Inc. now owns 7,276 shares of the company’s stock valued at $1,673,000 after buying an additional 4,106 shares in the last quarter. Finally, Valeo Financial Advisors LLC acquired a new position in Reddit during the second quarter valued at approximately $253,000.

Reddit Company Profile

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.