Reddit (NYSE:RDDT) Trading 7.5% Higher – Here’s Why

Reddit Inc. (NYSE:RDDT)’s share price was up 7.5% during mid-day trading on Wednesday . The stock traded as high as $155.14 and last traded at $155.4380. Approximately 1,531,990 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 5,276,103 shares. The stock had previously closed at $144.64.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on RDDT. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Wall Street Zen downgraded shares of Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Needham & Company LLC restated a “buy” rating and issued a $300.00 price target on shares of Reddit in a research report on Friday, May 1st. DA Davidson reaffirmed a “buy” rating and set a $200.00 price objective on shares of Reddit in a research note on Friday, May 1st. Finally, Robert W. Baird set a $200.00 price objective on Reddit in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $228.61.

Reddit Price Performance

The stock’s 50-day moving average is $148.11 and its 200 day moving average is $178.64. The stock has a market cap of $29.56 billion, a price-to-earnings ratio of 43.83 and a beta of 1.85.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $663.41 million for the quarter, compared to analysts’ expectations of $607.74 million. During the same quarter in the previous year, the firm posted $0.13 EPS. The firm’s quarterly revenue was up 69.1% on a year-over-year basis. Analysts anticipate that Reddit Inc. will post 4.83 EPS for the current year.

Insiders Place Their Bets

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at approximately $175,752,182.97. This trade represents a 3.47% decrease in their position. The sale 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, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $145.12, for a total value of $2,612,160.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares in the company, valued at $59,672,618.40. The trade was a 4.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 259,999 shares of company stock worth $39,290,328 in the last quarter. 34.25% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Reddit

Several large investors have recently modified their holdings of RDDT. Raiffeisen Bank International AG purchased a new stake in Reddit in the third quarter valued at about $25,000. Sunbelt Securities Inc. grew its holdings in Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after acquiring an additional 91 shares during the period. GW&K Investment Management LLC acquired a new stake in Reddit during the third quarter worth about $30,000. Ascentis Independent Advisors acquired a new stake in Reddit during the first quarter worth about $30,000. Finally, Cornerstone Planning Group LLC grew its holdings in Reddit by 13,500.0% during the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after acquiring an additional 135 shares during the period.

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.