Reddit (NYSE:RDDT) Trading 7.1% Higher – Should You Buy?

Reddit Inc. (NYSE:RDDT) rose 7.1% during trading on Wednesday . The company traded as high as $151.63 and last traded at $154.8550. 661,689 shares changed hands during mid-day 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 Analysts Forecast Growth

RDDT has been the subject of a number of recent research reports. Loop Capital reissued a “buy” rating and set a $260.00 price target on shares of Reddit in a research report on Thursday, June 4th. Citigroup reaffirmed a “market outperform” rating on shares of Reddit in a report on Monday, August 24th. B. Riley Financial raised their price objective on shares of Reddit from $250.00 to $270.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Needham & Company LLC reaffirmed a “buy” rating and set a $300.00 target price on shares of Reddit in a report on Wednesday, June 24th. Finally, Zacks Research cut shares of Reddit from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 25th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $221.10.

Reddit Price Performance

The business’s 50 day moving average price is $170.91 and its 200 day moving average price is $158.53. The firm has a market cap of $29.57 billion, a PE ratio of 35.94, a PEG ratio of 0.49 and a beta of 2.02.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. During the same period last year, the company posted $0.45 EPS. Reddit’s quarterly revenue was up 61.0% compared to the same quarter last year. As a group, analysts predict that Reddit Inc. will post 5.27 earnings per share for the current year.

Insider Transactions at Reddit

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

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Evansbrook LLC increased its stake in shares of Reddit by 2.2% in the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock worth $368,000 after acquiring an additional 59 shares during the last quarter. Signaturefd LLC increased its holdings in Reddit by 7.6% in the 2nd quarter. Signaturefd LLC now owns 878 shares of the company’s stock valued at $152,000 after purchasing an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares during the period. Florida Financial Advisors LLC raised its position in Reddit by 6.7% in the fourth quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company’s stock valued at $250,000 after purchasing an additional 68 shares during the period. Finally, Diversified Trust Co lifted its stake in Reddit by 2.1% during the first quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock worth $440,000 after purchasing 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.