Reddit, Inc. (NYSE:RDDT) Sees Large Decrease in Short Interest

Reddit, Inc. (NYSE:RDDT) was the recipient of a significant drop in short interest during the month of August. As of August 31st, there was short interest totalling 5,580,000 shares, a drop of 21.5% from the August 15th total of 7,110,000 shares. Based on an average daily volume of 3,510,000 shares, the days-to-cover ratio is currently 1.6 days. Approximately 7.5% of the company’s shares are short sold.

Reddit Stock Performance

RDDT traded up $2.74 during midday trading on Tuesday, reaching $61.89. 3,823,213 shares of the company were exchanged, compared to its average volume of 4,396,633. Reddit has a one year low of $37.35 and a one year high of $78.08. The stock has a fifty day moving average of $59.86.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Tuesday, August 6th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.31) by $0.25. The company had revenue of $281.20 million during the quarter, compared to analysts’ expectations of $253.86 million. The company’s quarterly revenue was up 53.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.70) earnings per share. On average, equities analysts forecast that Reddit will post -4.17 earnings per share for the current year.

Analysts Set New Price Targets

Several research firms have issued reports on RDDT. Bank of America raised their price target on shares of Reddit from $57.00 to $60.00 and gave the stock a “neutral” rating in a report on Wednesday, August 7th. JPMorgan Chase & Co. dropped their target price on shares of Reddit from $67.00 to $59.00 and set a “neutral” rating on the stock in a report on Wednesday, August 7th. Cannonball Research began coverage on Reddit in a report on Tuesday, August 6th. They set a “buy” rating and a $67.00 price target for the company. Sanford C. Bernstein boosted their price objective on Reddit from $45.00 to $50.00 and gave the company an “underperform” rating in a research note on Monday, July 22nd. Finally, Raymond James raised their target price on Reddit from $65.00 to $70.00 and gave the stock a “strong-buy” rating in a research note on Wednesday, July 31st. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $65.56.

Insider Buying and Selling at Reddit

In related news, CAO Michelle Marie Reynolds sold 8,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 27th. The shares were sold at an average price of $60.00, for a total value of $480,000.00. Following the completion of the transaction, the chief accounting officer now owns 66,238 shares in the company, valued at approximately $3,974,280. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. In other Reddit news, Director Mary Porter Gale sold 30,000 shares of the company’s stock in a transaction dated Monday, August 12th. The stock was sold at an average price of $52.31, for a total value of $1,569,300.00. Following the sale, the director now owns 71,459 shares in the company, valued at approximately $3,738,020.29. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CAO Michelle Marie Reynolds sold 8,000 shares of the firm’s stock in a transaction dated Tuesday, August 27th. The stock was sold at an average price of $60.00, for a total value of $480,000.00. Following the transaction, the chief accounting officer now owns 66,238 shares of the company’s stock, valued at $3,974,280. The disclosure for this sale can be found here. Over the last three months, insiders sold 204,373 shares of company stock worth $11,095,284.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Inclusive Capital Partners L.P. purchased a new stake in shares of Reddit during the 1st quarter valued at $103,051,000. Vanguard Group Inc. bought a new stake in Reddit in the first quarter worth about $82,167,000. Bank of New York Mellon Corp raised its position in Reddit by 10.1% in the second quarter. Bank of New York Mellon Corp now owns 1,663,603 shares of the company’s stock worth $106,288,000 after acquiring an additional 153,282 shares during the period. Marshall Wace LLP grew its position in shares of Reddit by 117.2% during the 2nd quarter. Marshall Wace LLP now owns 847,929 shares of the company’s stock valued at $54,174,000 after acquiring an additional 457,588 shares during the period. Finally, Price T Rowe Associates Inc. MD bought a new position in shares of Reddit during the 1st quarter valued at approximately $37,015,000.

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.