Reddit (NYSE:RDDT) Shares Gap Up After Analyst Upgrade

Reddit Inc. (NYSE:RDDT - Get Free Report) shares gapped up prior to trading on Wednesday after Citigroup raised their price target on the stock from $158.00 to $163.00. The stock had previously closed at $140.79, but opened at $150.91. Citigroup currently has a buy rating on the stock. Reddit shares last traded at $147.56, with a volume of 3,196,531 shares traded.

Several other equities research analysts also recently weighed in on the company. Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. Roth Mkm upped their price objective on Reddit from $120.00 to $130.00 and gave the company a "neutral" rating in a research report on Friday, May 2nd. Morgan Stanley reduced their target price on shares of Reddit from $210.00 to $140.00 and set an "overweight" rating on the stock in a research report on Thursday, April 17th. JPMorgan Chase & Co. lowered their price target on Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a report on Tuesday, April 8th. Finally, Guggenheim reissued a "buy" rating and issued a $165.00 price objective on shares of Reddit in a research note on Tuesday. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $139.57.

Insider Buying and Selling at Reddit

In related news, COO Jennifer L. Wong sold 33,333 shares of the firm's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $124.45, for a total transaction of $4,148,291.85. Following the completion of the transaction, the chief operating officer now owns 1,428,007 shares of the company's stock, valued at $177,715,471.15. This trade represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Steve Ladd Huffman sold 14,000 shares of the firm's stock in a transaction dated Monday, March 31st. The stock was sold at an average price of $103.28, for a total value of $1,445,920.00. Following the sale, the chief executive officer now directly owns 577,013 shares in the company, valued at approximately $59,593,902.64. This trade represents a 2.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 597,785 shares of company stock worth $66,215,370. 34.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Several hedge funds have recently bought and sold shares of RDDT. Signaturefd LLC lifted its stake in shares of Reddit by 3.5% in the 1st quarter. Signaturefd LLC now owns 2,859 shares of the company's stock valued at $300,000 after purchasing an additional 97 shares during the period. Proficio Capital Partners LLC increased its holdings in Reddit by 2.1% in the fourth quarter. Proficio Capital Partners LLC now owns 5,908 shares of the company's stock valued at $966,000 after buying an additional 120 shares in the last quarter. CWM LLC increased its holdings in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after buying an additional 128 shares in the last quarter. Farther Finance Advisors LLC raised its position in shares of Reddit by 148.5% in the fourth quarter. Farther Finance Advisors LLC now owns 246 shares of the company's stock worth $40,000 after acquiring an additional 147 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Reddit by 12.5% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 1,323 shares of the company's stock worth $139,000 after acquiring an additional 147 shares in the last quarter.

Reddit Stock Performance

The stock has a market cap of $27.10 billion, a PE ratio of 249.13, a price-to-earnings-growth ratio of 3.44 and a beta of 1.99. The company has a 50 day moving average of $113.86 and a two-hundred day moving average of $142.21.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.11. The company had revenue of $392.36 million for the quarter, compared to analysts' expectations of $370.55 million. Reddit had a return on equity of 5.69% and a net margin of 8.07%. Reddit's revenue was up 61.5% compared to the same quarter last year. During the same period in the previous year, the firm posted ($8.19) EPS. As a group, equities research analysts anticipate that Reddit Inc. will post 1.12 EPS for the current year.

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.

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