Reddit (NYSE:RDDT) Stock Price Up 11.3% – What’s Next?
by Danessa Lincoln · The Markets DailyReddit Inc. (NYSE:RDDT – Get Free Report)’s stock price shot up 11.3% during mid-day trading on Monday . The company traded as high as $180.62 and last traded at $180.4510. 3,418,368 shares changed hands during trading, a decline of 35% from the average session volume of 5,290,479 shares. The stock had previously closed at $162.10.
Analyst Upgrades and Downgrades
A number of brokerages have issued reports on RDDT. Rothschild & Co Redburn set a $110.00 target price on shares of Reddit in a research report on Monday, April 27th. Jefferies Financial Group decreased their target price on shares of Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a research report on Tuesday, March 10th. DA Davidson restated a “buy” rating and set a $200.00 target price on shares of Reddit in a research report on Friday, May 1st. Truist Financial set a $265.00 target price on shares of Reddit in a research report on Friday, May 1st. Finally, Zacks Research lowered shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Eighteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $230.75.
Read Our Latest Analysis on RDDT
Reddit Trading Up 12.2%
The firm has a market cap of $35.00 billion, a price-to-earnings ratio of 51.95 and a beta of 1.91. The company’s 50-day moving average is $157.38 and its 200-day moving average is $176.75.
Reddit (NYSE:RDDT – Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.39. The business 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%. The firm’s revenue for the quarter was up 69.1% on a year-over-year basis. During the same quarter last year, the business posted $0.13 EPS. Equities research analysts forecast that Reddit Inc. will post 4.83 EPS for the current year.
Insider Buying and Selling
In other Reddit news, CTO Christopher Brian Slowe sold 15,500 shares of the firm’s stock in a transaction that occurred 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 sale, the chief technology officer owned 38,413 shares in the company, valued at $5,787,686.71. This trade represents a 28.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 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 that occurred on Monday, May 18th. The shares were sold at an average price of $158.52, for a total transaction 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 $172,541,252.52. This represents a 3.47% decrease in their position. 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 90 days, insiders have sold 232,499 shares of company stock worth $36,123,803. Corporate insiders own 28.48% of the company’s stock.
Institutional Trading of Reddit
A number of hedge funds have recently added to or reduced their stakes in the stock. Militia Capital Management LLC acquired a new stake in Reddit in the first quarter valued at approximately $2,378,000. Evansbrook LLC boosted its position in Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after buying an additional 59 shares in the last quarter. Anson Funds Management LP acquired a new stake in Reddit in the first quarter valued at approximately $3,030,000. Janus Henderson Group PLC boosted its position in Reddit by 7.0% in the first quarter. Janus Henderson Group PLC now owns 9,130 shares of the company’s stock valued at $1,230,000 after buying an additional 600 shares in the last quarter. Finally, Arkadios Wealth Advisors boosted its position in Reddit by 1.2% in the first quarter. Arkadios Wealth Advisors now owns 11,418 shares of the company’s stock valued at $1,537,000 after buying an additional 132 shares in the last quarter.
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.