Traders Buy Large Volume of Call Options on Reddit (NYSE:RDDT)

Reddit Inc. (NYSE:RDDT) was the recipient of some unusual options trading on Thursday. Traders bought 61,137 call options on the stock. This is an increase of 35% compared to the typical volume of 45,415 call options.

Insider Activity at Reddit

In related news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total value of $6,324,295.49. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at approximately $175,752,182.97. This represents a 3.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the completion of the transaction, the chief technology officer directly owned 38,413 shares of the company’s stock, valued at approximately $5,787,686.71. This represents a 28.75% 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. In the last ninety days, insiders sold 259,999 shares of company stock valued at $39,812,508. 28.48% of the stock is owned by insiders.

Hedge Funds Weigh In On Reddit

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the last quarter. Capital World Investors purchased a new stake in Reddit in the 4th quarter valued at about $1,293,258,000. State Street Corp raised its holdings in Reddit by 6.0% in the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after buying an additional 149,401 shares during the period. Geode Capital Management LLC raised its holdings in Reddit by 4.7% in the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after buying an additional 106,821 shares during the period. Finally, Morgan Stanley raised its holdings in Reddit by 11.4% in the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after buying an additional 242,709 shares during the period.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Piper Sandler reissued an “overweight” rating and issued a $215.00 price objective (up from $205.00) on shares of Reddit in a research note on Friday, May 1st. DA Davidson restated a “buy” rating and issued a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Guggenheim upped their price target on Reddit from $245.00 to $255.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Morgan Stanley set a $240.00 price target on Reddit in a research report on Friday, February 6th. Finally, Oppenheimer restated an “outperform” rating and issued a $225.00 price target on shares of Reddit in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $230.75.

Reddit Stock Up 8.6%

NYSE:RDDT traded up $14.54 on Thursday, hitting $184.03. The stock had a trading volume of 5,258,023 shares, compared to its average volume of 5,338,203. The stock has a market cap of $35.43 billion, a price-to-earnings ratio of 52.49 and a beta of 1.91. The company has a fifty day moving average price of $151.50 and a two-hundred day moving average price of $177.46. Reddit has a 1-year low of $110.85 and a 1-year high of $282.95.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. Reddit’s revenue was up 69.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.13 EPS. As a group, analysts anticipate that Reddit will post 4.83 earnings per share for the current year.

Reddit Company Profile

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.