Reddit (NYSE:RDDT) Stock Price Up 8% – Here’s What Happened

Reddit Inc. (NYSE:RDDT) shares rose 8% on Wednesday . The stock traded as high as $189.90 and last traded at $187.4080. 1,480,596 shares were traded during mid-day trading, a decline of 71% from the average session volume of 5,164,827 shares. The stock had previously closed at $173.58.

Analysts Set New Price Targets

A number of research firms have recently issued reports on RDDT. Jefferies Financial Group cut their price objective on shares of Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a report on Tuesday, March 10th. Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a research report on Sunday, May 10th. Citizens Jmp cut their price target on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a report on Friday, May 1st. The Goldman Sachs Group reissued a “neutral” rating and issued a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Finally, Truist Financial set a $265.00 price objective on Reddit in a research note on Friday, May 1st. Eighteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, Reddit currently has an average rating of “Moderate Buy” and an average price target of $230.75.

Reddit Trading Up 13.5%

The stock has a market cap of $37.92 billion, a price-to-earnings ratio of 56.30 and a beta of 1.91. The stock has a 50-day moving average price of $162.94 and a two-hundred day moving average price of $172.21.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating 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 analyst estimates of $607.74 million. During the same period in the prior year, the company posted $0.13 EPS. The firm’s quarterly revenue was up 69.1% compared to the same quarter last year. Research analysts predict that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total value 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 $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 is available 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 that occurred on Monday, June 15th. The stock was sold at an average price of $178.26, for a total transaction of $3,208,680.00. Following the completion of the sale, the chief executive officer owned 373,814 shares of the company’s stock, valued at $66,636,083.64. This trade represents a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 223,000 shares of company stock worth $36,913,785 over the last 90 days. 28.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Large investors have recently made changes to their positions in the stock. Militia Capital Management LLC purchased a new position in Reddit in the 1st quarter worth $2,378,000. Evansbrook LLC increased its holdings in shares of Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after purchasing an additional 59 shares during the period. Anson Funds Management LP purchased a new position in shares of Reddit in the first quarter worth about $3,030,000. Janus Henderson Group PLC lifted its holdings in shares of Reddit by 7.0% during the first quarter. Janus Henderson Group PLC now owns 9,130 shares of the company’s stock worth $1,230,000 after purchasing an additional 600 shares during the period. Finally, Arkadios Wealth Advisors lifted its holdings in shares of Reddit by 1.2% during the first quarter. Arkadios Wealth Advisors now owns 11,418 shares of the company’s stock worth $1,537,000 after purchasing an additional 132 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.