Reddit (NYSE:RDDT) Shares Up 7.5% – Here’s Why

Reddit Inc. (NYSE:RDDT) shares rose 7.5% during trading on Wednesday . The stock traded as high as $155.14 and last traded at $155.4380. Approximately 1,531,990 shares traded hands during trading, a decline of 71% from the average daily volume of 5,276,103 shares. The stock had previously closed at $144.64.

Wall Street Analyst Weigh In

RDDT has been the subject of several research analyst reports. Robert W. Baird set a $200.00 price target on Reddit in a research report on Friday, February 6th. Piper Sandler restated an “overweight” rating and set a $215.00 price target (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Jefferies Financial Group lowered their price target on Reddit from $285.00 to $250.00 and set a “buy” rating for the company in a research report on Tuesday, March 10th. Guggenheim raised their price target on Reddit from $245.00 to $255.00 and gave the stock a “buy” rating in a research report on Friday, February 6th. Finally, Evercore restated an “outperform” rating and set a $290.00 price target on shares of Reddit in a research report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $228.61.

Reddit Price Performance

The firm has a market capitalization of $33.77 billion, a price-to-earnings ratio of 50.02 and a beta of 1.85. The firm has a 50 day moving average price of $148.88 and a 200-day moving average price of $178.25.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million for the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company’s revenue for the quarter was up 69.1% compared to the same quarter last year. During the same period last year, the firm earned $0.13 earnings per share. Equities research analysts predict that Reddit Inc. will post 4.83 earnings per share for the current year.

Insider Activity

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $157.15, for a total value of $2,828,700.00. Following the sale, the chief executive officer directly owned 411,195 shares in the company, valued at approximately $64,619,294.25. This trade represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. This represents a 3.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 241,999 shares of company stock worth $36,678,168. Corporate insiders own 34.25% of the company’s stock.

Institutional Trading of Reddit

A number of hedge funds and other institutional investors have recently bought and sold shares of RDDT. NewEdge Advisors LLC raised its stake in Reddit by 143.3% in the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock valued at $837,000 after buying an additional 4,701 shares in the last quarter. Empowered Funds LLC acquired a new stake in Reddit in the first quarter valued at $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock valued at $22,759,000 after buying an additional 111,780 shares in the last quarter. Focus Partners Wealth raised its stake in Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock valued at $1,073,000 after buying an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after buying an additional 286 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.