Reddit (NYSE:RDDT) Shares Gap Up – What’s Next?

Shares of Reddit Inc. (NYSE:RDDT) gapped up before the market opened on Friday . The stock had previously closed at $158.12, but opened at $175.78. Reddit shares last traded at $181.5750, with a volume of 5,109,321 shares changing hands.

More 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

Analysts Set New Price Targets

Several research firms have issued reports on RDDT. B. Riley Financial lifted their price target on shares of Reddit from $250.00 to $270.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Evercore reiterated an “outperform” rating and issued a $265.00 target price on shares of Reddit in a report on Friday, July 31st. Raymond James Financial set a $180.00 price target on shares of Reddit and gave the stock a “market perform” rating in a research note on Friday, May 1st. Needham & Company LLC restated a “buy” rating and issued a $300.00 price objective on shares of Reddit in a report on Wednesday, June 24th. Finally, JPMorgan Chase & Co. cut their target price on Reddit from $200.00 to $185.00 and set a “neutral” rating on the stock in a report on Friday, July 31st. Two 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 stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $220.90.

Reddit Stock Up 13.1%

The stock’s 50-day moving average is $175.21 and its 200-day moving average is $159.70. The firm has a market cap of $34.40 billion, a P/E ratio of 41.54, a price-to-earnings-growth ratio of 0.52 and a beta of 2.03.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.30. The business had revenue of $804.91 million during the quarter, compared to analysts’ expectations 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 quarter last year, the company earned $0.45 earnings per share. As a group, analysts expect that Reddit Inc. will post 5.22 EPS for the current fiscal year.

Insider Activity

In other news, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction dated 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 transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at approximately $172,541,252.52. This trade represents a 3.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer owned 373,814 shares of the company’s stock, valued at approximately $64,718,417.82. This represents a 4.59% 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. In the last 90 days, insiders sold 151,141 shares of company stock worth $25,635,785. 28.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Truist Financial Corp raised its position in shares of Reddit by 67.7% during the 4th quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after acquiring an additional 6,321 shares during the last quarter. Swiss Life Asset Management Ltd lifted its holdings in shares of Reddit by 63.2% during the 4th quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after purchasing an additional 12,398 shares in the last quarter. Calamos Advisors LLC bought a new position in Reddit in the fourth quarter valued at approximately $2,299,000. Handelsbanken Fonder AB lifted its position in Reddit by 22.9% in the 4th quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company’s stock valued at $8,505,000 after acquiring an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. lifted its holdings in shares of Reddit by 326,400.0% in the fourth quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company’s stock valued at $7,505,000 after purchasing an additional 32,640 shares in the last quarter.

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.