Investors Purchase High Volume of Reddit Call Options (NYSE:RDDT)

Reddit Inc. (NYSE:RDDT) saw some unusual options trading on Friday. Investors bought 94,890 call options on the stock. This is an increase of approximately 101% compared to the typical daily volume of 47,256 call options.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on RDDT. Piper Sandler restated an “overweight” rating and issued a $195.00 price target (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $200.00 price objective on Reddit in a research report on Friday, July 31st. Raymond James Financial set a $180.00 target price on Reddit and gave the company a “market perform” rating in a research report on Friday, May 1st. B. Riley Financial lifted their price target on shares of Reddit from $250.00 to $270.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Jefferies Financial Group set a $250.00 price target on shares of Reddit in a report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, Reddit has an average rating of “Moderate Buy” and a consensus target price of $220.90.

Insiders Place Their Bets

In other news, CAO Michelle Marie Reynolds sold 808 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the sale, the chief accounting officer owned 15,060 shares in the company, valued at approximately $3,012,000. The trade was a 5.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total value of $6,930,032.04. Following the sale, the chief operating officer owned 1,050,339 shares in the company, valued at $185,846,982.66. The trade was a 3.59% 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. Insiders have sold a total of 151,141 shares of company stock worth $25,635,785 over the last quarter. Company insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. boosted its holdings in Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares during the period. Ascentis Independent Advisors bought a new stake in Reddit in the 1st quarter valued at about $30,000. EverSource Wealth Advisors LLC increased its stake in shares of 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. Beacon Investment Advisory Services Inc. bought a new position in Reddit in the 2nd quarter worth approximately $35,000. Finally, Geneos Wealth Management Inc. boosted its position in Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after acquiring an additional 286 shares during the period.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Index inclusion should create forced demand. Mutual funds and exchange-traded funds that track the S&P 500 will generally need to purchase RDDT shares, potentially increasing institutional ownership, liquidity and near-term demand. Reddit stock soars after S&P 500 inclusion announcement
• Positive Sentiment: The announcement represents an important validation for Reddit. The company’s addition less than two years after its public listing may improve its visibility with institutional investors and broaden its shareholder base. Reddit shares jump on inclusion in S&P 500
• Positive Sentiment: Advertising momentum remains a supporting factor. Recent coverage highlights Reddit’s expanding advertiser base, stronger competition with Meta and Snap, and its AI-powered Reddit Max advertising tools. Marketers are increasingly viewing Reddit as valuable for influencing consumer choices and training or guiding large language models. Reddit strengthens ad game against Meta and Snap

Reddit Trading Up 14.0%

RDDT traded up $22.10 during trading hours on Friday, hitting $180.22. 9,453,197 shares of the company’s stock were exchanged, compared to its average volume of 5,264,784. Reddit has a 12-month low of $119.27 and a 12-month high of $282.95. The firm has a market cap of $34.67 billion, a P/E ratio of 41.87, a price-to-earnings-growth ratio of 0.52 and a beta of 2.03. The firm has a 50 day moving average of $175.21 and a 200 day moving average of $159.70.

Reddit (NYSE:RDDT) last announced 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. The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm’s revenue was up 61.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.45 earnings per share. As a group, research analysts expect that Reddit will post 5.22 EPS for the current fiscal year.

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.