Reddit (NYSE:RDDT) Trading 8.8% Higher – Here’s Why

Shares of Reddit, Inc. (NYSE:RDDT) were up 8.8% on Tuesday . The stock traded as high as $116.87 and last traded at $116.76. Approximately 2,317,009 shares changed hands during trading, a decline of 58% from the average daily volume of 5,536,635 shares. The stock had previously closed at $107.29.

Wall Street Analyst Weigh In

RDDT has been the topic of a number of research reports. Bank of America raised their price objective on Reddit from $180.00 to $190.00 and gave the company a “neutral” rating in a report on Thursday, February 13th. Citigroup restated a “neutral” rating on shares of Reddit in a report on Thursday, February 13th. Roth Mkm cut shares of Reddit from a “buy” rating to a “neutral” rating and lifted their price target for the company from $116.00 to $195.00 in a research report on Wednesday, January 22nd. JPMorgan Chase & Co. upped their price objective on shares of Reddit from $142.00 to $185.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. Finally, The Goldman Sachs Group lifted their target price on shares of Reddit from $105.00 to $176.00 and gave the company a “neutral” rating in a report on Tuesday, January 14th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $173.45.

Reddit Stock Performance

The firm has a market cap of $22.74 billion and a PE ratio of -16.26. The stock’s fifty day moving average price is $178.95 and its 200-day moving average price is $132.30.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. Sell-side analysts forecast that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Activity at Reddit

In related news, CAO Michelle Marie Reynolds sold 11,965 shares of the company’s stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $157.41, for a total transaction of $1,883,410.65. Following the completion of the transaction, the chief accounting officer now owns 48,418 shares of the company’s stock, valued at approximately $7,621,477.38. This represents a 19.82 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Benjamin Seong Lee sold 92,299 shares of the business’s stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the sale, the insider now directly owns 115,001 shares of the company’s stock, valued at $18,095,407.35. This represents a 44.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 393,386 shares of company stock valued at $66,673,388.

Hedge Funds Weigh In On Reddit

Hedge funds have recently made changes to their positions in the business. Kilter Group LLC acquired a new stake in Reddit in the fourth quarter valued at approximately $928,000. Castle Rock Wealth Management LLC acquired a new stake in Reddit during the 4th quarter valued at approximately $789,000. Brooklyn FI LLC acquired a new stake in Reddit during the 4th quarter valued at approximately $6,339,000. Employees Retirement System of Texas purchased a new stake in Reddit during the 4th quarter worth approximately $1,803,000. Finally, Jefferies Financial Group Inc. acquired a new position in shares of Reddit in the 4th quarter valued at approximately $917,000.

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.