Reddit (NYSE:RDDT) Shares Up 6.2% – What’s Next?

Reddit Inc. (NYSE:RDDT)’s stock price shot up 6.2% during mid-day trading on Friday . The stock traded as high as $237.41 and last traded at $236.6510. 2,850,026 shares changed hands during trading, a decline of 60% from the average session volume of 7,133,099 shares. The stock had previously closed at $222.75.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. raised their price objective on Reddit from $190.00 to $227.00 and gave the company a “neutral” rating in a report on Friday, October 31st. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $236.00 price objective on shares of Reddit in a research note on Tuesday, October 14th. Morgan Stanley reissued an “overweight” rating and set a $250.00 target price on shares of Reddit in a report on Friday, October 31st. Bank of America raised their price target on shares of Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a research note on Friday, October 31st. Finally, Wall Street Zen raised Reddit from a “hold” rating to a “buy” rating in a research note on Sunday, September 7th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $226.33.

Reddit Stock Performance

The business has a 50 day simple moving average of $204.72 and a two-hundred day simple moving average of $185.50. The firm has a market capitalization of $44.35 billion, a P/E ratio of 134.68, a price-to-earnings-growth ratio of 2.44 and a beta of 2.17.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The company had revenue of $584.91 million during the quarter, compared to the consensus estimate of $546.65 million. During the same period in the previous year, the firm posted $0.16 EPS. The firm’s revenue was up 67.9% compared to the same quarter last year. On average, equities analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other news, CAO Michelle Marie Reynolds sold 3,215 shares of the firm’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $186.44, for a total transaction of $599,404.60. Following the transaction, the chief accounting officer directly owned 21,807 shares of the company’s stock, valued at approximately $4,065,697.08. This trade represents a 12.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Christopher Brian Slowe sold 24,000 shares of the stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $192.72, for a total value of $4,625,280.00. Following the sale, the chief technology officer owned 175,694 shares of the company’s stock, valued at $33,859,747.68. This represents a 12.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 394,370 shares of company stock valued at $83,157,724. 34.25% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Reddit

Several institutional investors and hedge funds have recently bought and sold shares of RDDT. Avantax Advisory Services Inc. bought a new position in shares of Reddit during the first quarter valued at approximately $228,000. Cetera Investment Advisers boosted its stake in shares of Reddit by 156.4% during the 1st quarter. Cetera Investment Advisers now owns 18,607 shares of the company’s stock valued at $1,952,000 after purchasing an additional 11,349 shares in the last quarter. LPL Financial LLC increased its position in shares of Reddit by 58.4% during the first quarter. LPL Financial LLC now owns 104,230 shares of the company’s stock valued at $10,934,000 after buying an additional 38,446 shares during the period. US Bancorp DE increased its position in shares of Reddit by 56.9% during the first quarter. US Bancorp DE now owns 4,154 shares of the company’s stock valued at $436,000 after buying an additional 1,506 shares during the period. Finally, PNC Financial Services Group Inc. raised its stake in Reddit by 37.9% in the first quarter. PNC Financial Services Group Inc. now owns 3,003 shares of the company’s stock worth $315,000 after buying an additional 825 shares in the last quarter.

About Reddit

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.