Reddit (NYSE:RDDT) Shares Gap Up – Time to Buy?

Reddit, Inc. (NYSE:RDDT)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $126.20, but opened at $133.65. Reddit shares last traded at $141.76, with a volume of 5,456,443 shares changing hands.

Analyst Ratings Changes

A number of brokerages recently issued reports on RDDT. Oppenheimer initiated coverage on Reddit in a research note on Wednesday, April 16th. They set an “outperform” rating and a $125.00 price target for the company. Redburn Partners set a $75.00 target price on shares of Reddit in a research note on Monday, March 17th. Roth Capital restated a “neutral” rating on shares of Reddit in a research report on Friday, May 2nd. Truist Financial began coverage on shares of Reddit in a research report on Monday, April 7th. They issued a “buy” rating and a $150.00 price objective for the company. Finally, Sanford C. Bernstein raised Reddit from an “underperform” rating to a “market perform” rating and set a $130.00 price target on the stock in a report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and an average price target of $139.35.

Reddit Price Performance

The company’s 50 day moving average price is $109.63 and its two-hundred day moving average price is $142.72. The stock has a market capitalization of $24.77 billion, a PE ratio of -17.46, a P/E/G ratio of 4.72 and a beta of 1.99.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, May 1st. The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.11. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The company had revenue of $392.36 million during the quarter, compared to the consensus estimate of $370.55 million. During the same quarter in the previous year, the firm earned ($8.19) EPS. The company’s revenue was up 61.5% on a year-over-year basis. Analysts forecast that Reddit, Inc. will post 1.12 earnings per share for the current year.

Insider Activity at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction that occurred on Monday, March 31st. The stock was sold at an average price of $103.28, for a total transaction of $1,445,920.00. Following the completion of the transaction, the chief executive officer now owns 577,013 shares of the company’s stock, valued at $59,593,902.64. This trade represents a 2.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Benjamin Seong Lee sold 6,854 shares of Reddit stock in a transaction on Thursday, May 22nd. The stock was sold at an average price of $98.42, for a total transaction of $674,570.68. Following the completion of the transaction, the insider now directly owns 99,277 shares of the company’s stock, valued at $9,770,842.34. The trade was a 6.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 520,134 shares of company stock worth $56,714,433. Company insiders own 34.25% of the company’s stock.

Hedge Funds Weigh In On Reddit

A number of institutional investors have recently made changes to their positions in RDDT. Plato Investment Management Ltd acquired a new stake in shares of Reddit in the fourth quarter worth $27,000. CWM LLC boosted its position in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company’s stock valued at $27,000 after buying an additional 128 shares in the last quarter. EverSource Wealth Advisors LLC acquired a new position in shares of Reddit in the 4th quarter valued at about $28,000. Stone House Investment Management LLC bought a new position in shares of Reddit in the first quarter valued at approximately $31,000. Finally, Allworth Financial LP increased its position in Reddit by 970.0% in the fourth quarter. Allworth Financial LP now owns 214 shares of the company’s stock worth $35,000 after buying an additional 194 shares during the last quarter.

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.