Reddit (NYSE:RDDT) Trading 7.9% Higher – Still a Buy?

Reddit Inc. (NYSE:RDDT) shot up 7.9% on Thursday . The company traded as high as $234.78 and last traded at $245.2430. 350,205 shares changed hands during mid-day trading, a decline of 95% from the average session volume of 7,029,227 shares. The stock had previously closed at $227.34.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Morgan Stanley reiterated an “overweight” rating and set a $250.00 target price on shares of Reddit in a research note on Friday, October 31st. Piper Sandler reiterated an “overweight” rating on shares of Reddit in a research report on Monday, December 1st. Wall Street Zen raised Reddit from a “hold” rating to a “buy” rating in a report on Sunday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Reddit in a report on Monday. Finally, Bank of America lifted their target price on shares of Reddit from $180.00 to $210.00 and gave the stock a “neutral” rating in a research report on Friday, October 31st. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $230.28.

Reddit Stock Performance

The business has a 50-day moving average price of $207.44 and a 200 day moving average price of $194.00. The stock has a market capitalization of $44.87 billion, a P/E ratio of 135.55, a PEG ratio of 2.47 and a beta of 2.17.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.30. The firm had revenue of $584.91 million for the quarter, compared to the consensus estimate of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The business’s revenue was up 67.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.16 earnings per share. As a group, research analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Reddit news, COO Jennifer L. Wong sold 63,427 shares of the firm’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $192.72, for a total value of $12,223,651.44. Following the transaction, the chief operating officer directly owned 1,184,528 shares of the company’s stock, valued at approximately $228,282,236.16. This trade represents a 5.08% 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, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $220.28, for a total transaction of $3,965,040.00. Following the sale, the chief executive officer owned 448,576 shares of the company’s stock, valued at $98,812,321.28. This trade represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 405,619 shares of company stock valued at $85,005,978 in the last ninety days. Corporate insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

A number of hedge funds have recently modified their holdings of the business. Kovitz Investment Group Partners LLC lifted its position in Reddit by 78.7% during the first quarter. Kovitz Investment Group Partners LLC now owns 2,271 shares of the company’s stock valued at $238,000 after purchasing an additional 1,000 shares in the last quarter. American Century Companies Inc. lifted its position in shares of Reddit by 35.0% during the 1st quarter. American Century Companies Inc. now owns 11,523 shares of the company’s stock valued at $1,209,000 after buying an additional 2,987 shares in the last quarter. State of New Jersey Common Pension Fund D grew its stake in shares of Reddit by 7.2% during the 1st quarter. State of New Jersey Common Pension Fund D now owns 23,131 shares of the company’s stock valued at $2,426,000 after acquiring an additional 1,548 shares during the period. Northwest & Ethical Investments L.P. increased its holdings in Reddit by 23.4% in the 1st quarter. Northwest & Ethical Investments L.P. now owns 3,054 shares of the company’s stock worth $320,000 after acquiring an additional 579 shares in the last quarter. Finally, Versor Investments LP bought a new stake in Reddit during the 1st quarter worth approximately $231,000.

Reddit Company Profile

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.