Reddit (NYSE:RDDT) Trading Up 8.8% – What’s Next?

Reddit, Inc. (NYSE:RDDT)’s stock price shot up 8.8% during mid-day trading on Tuesday . The stock traded as high as $116.87 and last traded at $116.76. 2,317,009 shares changed hands during mid-day trading, a decline of 58% from the average session volume of 5,536,635 shares. The stock had previously closed at $107.29.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of recent research reports. The Goldman Sachs Group increased their target price on Reddit from $105.00 to $176.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 14th. Roth Mkm cut shares of Reddit from a “buy” rating to a “neutral” rating and raised their target price for the stock from $116.00 to $195.00 in a report on Wednesday, January 22nd. Morgan Stanley increased their price target on Reddit from $200.00 to $210.00 and gave the stock an “overweight” rating in a research report on Thursday, February 13th. Guggenheim initiated coverage on Reddit in a report on Friday, December 20th. They issued a “buy” rating and a $210.00 price objective for the company. Finally, JPMorgan Chase & Co. increased their target price on Reddit from $142.00 to $185.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $175.95.

Reddit Stock Performance

The stock’s 50 day simple moving average is $180.42 and its 200 day simple moving average is $131.86. The firm has a market cap of $21.46 billion and a P/E ratio of -15.34.

Reddit (NYSE:RDDT) last posted its earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. As a group, analysts forecast that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, CAO Michelle Marie Reynolds sold 11,965 shares of the company’s stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $157.41, for a total value of $1,883,410.65. Following the completion of the sale, the chief accounting officer now owns 48,418 shares of the company’s stock, valued at $7,621,477.38. This represents a 19.82 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Benjamin Seong Lee sold 92,299 shares of Reddit stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the transaction, the insider now directly owns 115,001 shares in the company, valued at $18,095,407.35. This trade represents a 44.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 393,386 shares of company stock valued at $66,673,388 over the last three months.

Institutional Investors Weigh In On Reddit

A number of large investors have recently made changes to their positions in RDDT. Plato Investment Management Ltd bought a new stake in Reddit in the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC purchased a new position in shares of Reddit during the fourth quarter valued at about $28,000. Ridgewood Investments LLC raised its stake in Reddit by 100.0% in the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock worth $33,000 after buying an additional 100 shares in the last quarter. Farmers & Merchants Investments Inc. purchased a new stake in Reddit in the fourth quarter worth about $33,000. Finally, Bogart Wealth LLC purchased a new position in shares of Reddit during the 4th quarter worth approximately $33,000.

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.