Investors Buy High Volume of Reddit Call Options (NYSE:RDDT)

Reddit, Inc. (NYSE:RDDT - Get Free Report) was the target of unusually large options trading activity on Tuesday. Stock investors bought 87,739 call options on the stock. This is an increase of approximately 36% compared to the average volume of 64,608 call options.

Reddit Price Performance

RDDT stock traded up $7.99 during trading hours on Tuesday, reaching $134.19. 18,969,650 shares of the stock were exchanged, compared to its average volume of 6,342,709. The firm's 50-day moving average is $109.63 and its 200-day moving average is $142.72. The company has a market cap of $24.76 billion, a price-to-earnings ratio of -17.41, a PEG ratio of 4.72 and a beta of 1.99. Reddit has a 12 month low of $49.13 and a 12 month high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.02 by $0.11. The firm had revenue of $392.36 million during the quarter, compared to analysts' expectations of $370.55 million. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The company's revenue was up 61.5% on a year-over-year basis. During the same quarter in the prior year, the company earned ($8.19) EPS. As a group, equities research analysts forecast that Reddit will post 1.12 earnings per share for the current year.

Insider Transactions at Reddit

In other news, CFO Andrew Vollero sold 100,000 shares of Reddit stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $124.08, for a total transaction of $12,408,000.00. Following the sale, the chief financial officer now owns 499,295 shares of the company's stock, valued at approximately $61,952,523.60. The trade was a 16.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Christopher Brian Slowe sold 11,000 shares of the business's stock in a transaction on Monday, March 24th. The stock was sold at an average price of $124.08, for a total value of $1,364,880.00. Following the completion of the sale, the chief technology officer now directly owns 281,213 shares in the company, valued at $34,892,909.04. This represents a 3.76% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 520,134 shares of company stock valued at $56,714,433. Insiders own 34.25% of the company's stock.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Plato Investment Management Ltd acquired a new stake in Reddit in the fourth quarter valued at $27,000. CWM LLC raised its holdings in shares of Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares during the period. EverSource Wealth Advisors LLC bought a new stake in shares of Reddit in the 4th quarter valued at about $28,000. Stone House Investment Management LLC bought a new stake in shares of Reddit in the 1st quarter valued at about $31,000. Finally, Allworth Financial LP raised its holdings in shares of Reddit by 970.0% in the 4th quarter. Allworth Financial LP now owns 214 shares of the company's stock valued at $35,000 after purchasing an additional 194 shares during the period.

Wall Street Analyst Weigh In

RDDT has been the topic of several research reports. JMP Securities reaffirmed a "market outperform" rating and issued a $180.00 price target on shares of Reddit in a report on Friday, May 2nd. Royal Bank of Canada began coverage on Reddit in a report on Tuesday, June 3rd. They issued a "sector perform" rating and a $125.00 price target on the stock. Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a report on Saturday. Truist Financial began coverage on Reddit in a report on Monday, April 7th. They set a "buy" rating and a $150.00 price target on the stock. Finally, Guggenheim lowered their price target on Reddit from $170.00 to $165.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. One analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $139.35.

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.

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