Reddit (NYSE:RDDT) Trading Up 9.4% Following Analyst Upgrade

Reddit Inc. (NYSE:RDDT)’s stock price traded up 9.4% on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $153.23 and last traded at $153.8380. 6,331,408 shares traded hands during trading, an increase of 20% from the average session volume of 5,283,828 shares. The stock had previously closed at $140.67.

Other research analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft set a $200.00 price target on shares of Reddit in a research note on Friday. Truist Financial increased their target price on Reddit from $265.00 to $275.00 and gave the stock a “buy” rating in a report on Friday. DA Davidson restated a “buy” rating and set a $200.00 target price on shares of Reddit in a research report on Thursday, July 23rd. Citizens Jmp decreased their price target on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a research note on Friday, May 1st. Finally, Citigroup reiterated a “market outperform” rating on shares of Reddit in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $220.90.

Insider Activity

In other news, COO Jennifer L. Wong sold 39,166 shares of the company’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares of the company’s stock, valued at $185,846,982.66. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares of the company’s stock, valued at approximately $3,012,000. The trade was a 5.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 169,141 shares of company stock worth $28,680,845 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of institutional investors have recently bought and sold shares of the business. Capital World Investors acquired a new stake in Reddit during the 4th quarter worth approximately $1,293,258,000. Norges Bank acquired a new position in Reddit in the 4th quarter valued at $372,047,000. Invesco Ltd. increased its position in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock worth $342,212,000 after buying an additional 1,201,237 shares during the period. State Street Corp increased its position in Reddit by 138.5% during the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company’s stock worth $305,678,000 after buying an additional 1,178,890 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after buying an additional 1,083,540 shares in the last quarter.

Reddit Stock Up 9.6%

The stock has a fifty day moving average price of $176.72 and a two-hundred day moving average price of $164.36. The company has a market cap of $29.68 billion, a price-to-earnings ratio of 35.74 and a beta of 2.04.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.97%. The business had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. During the same period in the prior year, the company posted $0.45 earnings per share. Reddit’s revenue was up 61.0% compared to the same quarter last year. Analysts predict that Reddit Inc. will post 4.85 earnings per share for the current fiscal year.

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.