Reddit (NYSE:RDDT) Sees Unusually-High Trading Volume After Earnings Beat

Reddit, Inc. (NYSE:RDDT - Get Free Report) shares saw an uptick in trading volume on Friday following a better than expected earnings announcement. 9,520,725 shares changed hands during mid-day trading, an increase of 66% from the previous session's volume of 5,721,268 shares.The stock last traded at $122.63 and had previously closed at $118.79.

The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.11. The business had revenue of $392.36 million during the quarter, compared to the consensus estimate of $370.55 million. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The company's revenue was up 61.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($8.19) earnings per share.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on RDDT shares. Bank of America lowered their price objective on Reddit from $190.00 to $110.00 and set a "neutral" rating on the stock in a report on Wednesday, April 9th. JPMorgan Chase & Co. dropped their price target on Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a research report on Tuesday, April 8th. Citigroup raised their price objective on Reddit from $150.00 to $158.00 and gave the company a "buy" rating in a report on Friday. Loop Capital reaffirmed a "buy" rating and set a $210.00 target price on shares of Reddit in a report on Tuesday, March 11th. Finally, Sanford C. Bernstein raised shares of Reddit from an "underperform" rating to a "market perform" rating and set a $130.00 price target on the stock in a research note on Friday. One analyst has rated the stock with a sell rating, eight have issued a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $142.30.

Insider Buying and Selling at Reddit

In other news, insider Benjamin Seong Lee sold 92,299 shares of the business's stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total value of $14,523,247.65. Following the transaction, the insider now owns 115,001 shares of the company's stock, valued at approximately $18,095,407.35. The trade was a 44.52 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director David C. Habiger purchased 774 shares of the business's stock in a transaction dated Wednesday, March 12th. The shares were bought at an average price of $130.36 per share, with a total value of $100,898.64. Following the purchase, the director now directly owns 30,808 shares of the company's stock, valued at approximately $4,016,130.88. The trade was a 2.58 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last quarter, insiders sold 711,270 shares of company stock worth $94,239,985.

Hedge Funds Weigh In On Reddit

A number of large investors have recently bought and sold shares of the company. Everence Capital Management Inc. acquired a new stake in Reddit in the fourth quarter valued at about $531,000. Watts Gwilliam & Co. LLC purchased a new position in Reddit in the fourth quarter worth $337,000. Ridgewood Investments LLC lifted its holdings in Reddit by 100.0% in the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company's stock valued at $33,000 after acquiring an additional 100 shares during the period. Westmount Partners LLC purchased a new stake in shares of Reddit during the 4th quarter worth $391,000. Finally, Sivia Capital Partners LLC grew its stake in shares of Reddit by 277.6% during the 4th quarter. Sivia Capital Partners LLC now owns 184,577 shares of the company's stock worth $30,167,000 after purchasing an additional 135,700 shares during the period.

Reddit Trading Down 4.9 %

The stock's 50 day moving average price is $116.82 and its two-hundred day moving average price is $144.15. The firm has a market capitalization of $20.44 billion, a price-to-earnings ratio of -14.62, a PEG ratio of 4.72 and a beta of 2.89.

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.