Stock Traders Buy Large Volume of Call Options on Reddit (NYSE:RDDT)

Reddit Inc. (NYSE:RDDT - Get Free Report) saw unusually large options trading activity on Tuesday. Investors purchased 87,739 call options on the stock. This is an increase of approximately 36% compared to the typical daily volume of 64,608 call options.

Reddit Trading Down 1.1%

RDDT stock traded down $1.58 during mid-day trading on Friday, hitting $139.58. The stock had a trading volume of 8,757,873 shares, compared to its average volume of 6,438,217. The stock has a market capitalization of $25.76 billion, a price-to-earnings ratio of 236.59, a PEG ratio of 3.62 and a beta of 1.99. The company has a fifty day moving average of $112.26 and a 200 day moving average of $142.57. Reddit has a 1-year low of $49.13 and a 1-year high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, May 1st. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.02 by $0.11. Reddit had a return on equity of 5.69% and a net margin of 8.07%. The business had revenue of $392.36 million during the quarter, compared to the consensus estimate of $370.55 million. During the same quarter last year, the company earned ($8.19) EPS. Reddit's revenue was up 61.5% on a year-over-year basis. As a group, sell-side analysts expect that Reddit will post 1.12 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Citigroup raised their target price on shares of Reddit from $150.00 to $158.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. The Goldman Sachs Group upped their price objective on Reddit from $124.00 to $140.00 and gave the company a "neutral" rating in a research note on Friday, May 2nd. Morgan Stanley reduced their target price on Reddit from $210.00 to $140.00 and set an "overweight" rating on the stock in a report on Thursday, April 17th. Oppenheimer assumed coverage on Reddit in a report on Wednesday, April 16th. They set an "outperform" rating and a $125.00 price target on the stock. Finally, Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. One analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $139.35.

Insider Transactions at Reddit

In other Reddit news, CFO Andrew Vollero sold 100,000 shares of the stock in a transaction dated Monday, March 24th. The shares were 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 $61,952,523.60. This represents a 16.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Michelle Marie Reynolds sold 2,729 shares of the company's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $98.85, for a total transaction of $269,761.65. Following the transaction, the chief accounting officer now owns 42,277 shares in the company, valued at approximately $4,179,081.45. The trade was a 6.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 708,785 shares of company stock valued at $79,988,250 in the last quarter. Insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FMR LLC increased its position in shares of Reddit by 7.5% in the fourth quarter. FMR LLC now owns 13,070,780 shares of the company's stock valued at $2,136,288,000 after acquiring an additional 913,189 shares during the last quarter. Vanguard Group Inc. lifted its stake in Reddit by 11.1% during the first quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock worth $1,069,828,000 after purchasing an additional 1,017,162 shares during the last quarter. Alliancebernstein L.P. lifted its stake in shares of Reddit by 103.0% in the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock valued at $593,733,000 after acquiring an additional 2,871,232 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its stake in shares of Reddit by 10.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,073,939 shares of the company's stock valued at $427,357,000 after acquiring an additional 389,761 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in Reddit by 98.2% during the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock worth $200,096,000 after purchasing an additional 944,847 shares during the last quarter.

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.