Reddit (NYSE:RDDT) Shares Up 3.1% – Should You Buy?

Reddit Inc. (NYSE:RDDT)’s stock price rose 3.1% on Monday . The company traded as high as $232.59 and last traded at $232.8550. Approximately 1,514,417 shares changed hands during trading, a decline of 78% from the average daily volume of 6,955,020 shares. The stock had previously closed at $225.77.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on RDDT. Roth Capital set a $210.00 price target on shares of Reddit in a report on Friday, October 31st. Cannonball Research reiterated a “buy” rating on shares of Reddit in a research report on Tuesday, September 23rd. Bank of America upped 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. China Renaissance started coverage on shares of Reddit in a research note on Tuesday, December 9th. They issued a “buy” rating and a $300.00 price target on the stock. Finally, Sanford C. Bernstein boosted their price objective on Reddit from $190.00 to $210.00 and gave the stock a “market perform” rating in a research report on Friday, October 31st. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and a consensus price target of $230.28.

Reddit Stock Performance

The stock has a market capitalization of $43.58 billion, a P/E ratio of 132.17, a price-to-earnings-growth ratio of 2.59 and a beta of 2.17. The business has a 50 day simple moving average of $212.56 and a 200-day simple moving average of $201.78.

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

Insider Buying and Selling at Reddit

In related news, CTO Christopher Brian Slowe sold 14,000 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $233.53, for a total transaction of $3,269,420.00. Following the completion of the sale, the chief technology officer directly owned 171,694 shares in the company, valued at approximately $40,095,699.82. This trade represents a 7.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Michelle Marie Reynolds sold 11,249 shares of the company’s stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $232.95, for a total value of $2,620,454.55. Following the completion of the transaction, the chief accounting officer directly owned 10,558 shares in the company, valued at $2,459,486.10. This represents a 51.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 461,333 shares of company stock valued at $96,309,724. Corporate insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in RDDT. Vanguard Group Inc. boosted its stake in Reddit by 12.9% in the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the period. Alliancebernstein L.P. raised its stake in Reddit by 103.0% during the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company’s stock valued at $593,733,000 after purchasing an additional 2,871,232 shares during the period. State Street Corp lifted its holdings in shares of Reddit by 22.3% in the third quarter. State Street Corp now owns 2,481,931 shares of the company’s stock valued at $570,819,000 after purchasing an additional 451,792 shares in the last quarter. JPMorgan Chase & Co. boosted its position in shares of Reddit by 7.5% in the second quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company’s stock worth $308,846,000 after buying an additional 143,680 shares during the period. Finally, Geode Capital Management LLC boosted its position in shares of Reddit by 72.1% in the second quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company’s stock worth $299,044,000 after buying an additional 833,245 shares during the period.

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.