Reddit (NYSE:RDDT) Reaches New 52-Week High - Should You Buy?

Key Points

Error: Response status code does not indicate success: 429 (Too Many Requests).

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $253.14 and last traded at $241.76, with a volume of 6919692 shares trading hands. The stock had previously closed at $246.50.

Analyst Upgrades and Downgrades

RDDT has been the subject of several recent research reports. Royal Bank Of Canada reissued a "sector perform" rating and issued a $210.00 price target on shares of Reddit in a research note on Friday. Loop Capital decreased their target price on Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, June 12th. Citigroup raised their target price on Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Robert W. Baird raised their target price on Reddit from $120.00 to $151.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 8th. Finally, Seaport Res Ptn upgraded Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and a consensus target price of $175.38.

Reddit Price Performance

The stock has a fifty day moving average price of $167.83 and a two-hundred day moving average price of $142.16. The company has a market cap of $40.67 billion, a P/E ratio of 197.53, a price-to-earnings-growth ratio of 3.46 and a beta of 2.30.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. During the same quarter last year, the company earned ($0.06) earnings per share. The company's revenue for the quarter was up 77.9% on a year-over-year basis. Reddit has set its Q3 2025 guidance at EPS. Equities analysts predict that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Jennifer L. Wong sold 33,334 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $142.06, for a total value of $4,735,428.04. Following the transaction, the chief operating officer owned 1,428,007 shares in the company, valued at $202,862,674.42. This trade represents a 2.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Steve Ladd Huffman sold 124,409 shares of Reddit stock in a transaction on Monday, June 16th. The stock was sold at an average price of $124.45, for a total value of $15,482,700.05. Following the sale, the chief executive officer owned 546,133 shares in the company, valued at $67,966,251.85. This trade represents a 18.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 363,364 shares of company stock worth $53,557,742 over the last three months. Company insiders own 34.25% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Stance Capital LLC bought a new position in Reddit in the 2nd quarter valued at $1,642,000. Thompson Davis & CO. Inc. bought a new position in Reddit in the 2nd quarter valued at $384,000. B. Riley Wealth Advisors Inc. bought a new position in Reddit in the 2nd quarter valued at $5,002,000. Cim LLC grew its stake in Reddit by 9.2% in the 2nd quarter. Cim LLC now owns 8,282 shares of the company's stock valued at $1,247,000 after purchasing an additional 699 shares during the period. Finally, Campbell Capital Management Inc. grew its stake in Reddit by 134.5% in the 2nd quarter. Campbell Capital Management Inc. now owns 26,055 shares of the company's stock valued at $3,923,000 after purchasing an additional 14,945 shares during the period.

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.