Reddit (NYSE:RDDT) Trading Up 5.7% – Here’s Why

Shares of Reddit, Inc. (NYSE:RDDT) shot up 5.7% on Friday . The company traded as high as $175.88 and last traded at $175.32. 884,168 shares traded hands during mid-day trading, a decline of 64% from the average session volume of 2,432,393 shares. The stock had previously closed at $165.91.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on RDDT shares. JMP Securities raised their price target on Reddit from $118.00 to $160.00 and gave the stock a “market outperform” rating in a research report on Monday, November 25th. Roth Mkm boosted their target price on Reddit from $89.00 to $116.00 and gave the stock a “buy” rating in a research report on Wednesday, October 30th. B. Riley reiterated a “buy” rating and issued a $112.00 price target (up from $87.00) on shares of Reddit in a research report on Wednesday, October 30th. Needham & Company LLC boosted their price objective on shares of Reddit from $120.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, December 11th. Finally, Sanford C. Bernstein increased their target price on shares of Reddit from $65.00 to $85.00 and gave the stock an “underperform” rating in a report on Wednesday, October 30th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Reddit currently has an average rating of “Moderate Buy” and a consensus target price of $132.70.

Reddit Stock Performance

The firm’s 50 day moving average price is $146.37 and its two-hundred day moving average price is $93.00.

Reddit (NYSE:RDDT) last released its earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.23. Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54%. The business had revenue of $348.40 million during the quarter, compared to the consensus estimate of $313.61 million. The business’s revenue for the quarter was up 67.9% on a year-over-year basis. On average, equities research analysts predict that Reddit, Inc. will post -3.46 earnings per share for the current fiscal year.

Insider Activity at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction on Tuesday, December 31st. The shares were sold at an average price of $165.33, for a total value of $2,314,620.00. Following the completion of the transaction, the chief executive officer now directly owns 614,394 shares of the company’s stock, valued at approximately $101,577,760.02. This trade represents a 2.23 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mary Porter Gale sold 5,000 shares of the company’s stock in a transaction on Friday, November 1st. The stock was sold at an average price of $114.40, for a total transaction of $572,000.00. Following the sale, the director now directly owns 46,459 shares in the company, valued at $5,314,909.60. This trade represents a 9.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 264,357 shares of company stock valued at $35,297,700.

Hedge Funds Weigh In On Reddit

A number of hedge funds and other institutional investors have recently bought and sold shares of RDDT. Whittier Trust Co. acquired a new stake in shares of Reddit in the third quarter valued at approximately $42,000. Daiwa Securities Group Inc. bought a new stake in Reddit in the 3rd quarter valued at $85,000. SOA Wealth Advisors LLC. raised its stake in Reddit by 56.3% in the 3rd quarter. SOA Wealth Advisors LLC. now owns 1,919 shares of the company’s stock valued at $126,000 after acquiring an additional 691 shares during the period. Sanctuary Advisors LLC acquired a new stake in Reddit during the 3rd quarter valued at $144,000. Finally, Hsbc Holdings PLC bought a new position in Reddit during the second quarter worth $203,000.

Reddit Company Profile

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.