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

Key Points

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Reddit Inc. (NYSE:RDDT - Get Free Report)'s share price gapped up before the market opened on Thursday after Bank of America raised their price target on the stock from $130.00 to $150.00. The stock had previously closed at $149.33, but opened at $160.88. Bank of America currently has a neutral rating on the stock. Reddit shares last traded at $156.69, with a volume of 2,902,268 shares traded.

A number of other equities analysts also recently commented on RDDT. Royal Bank Of Canada set a $125.00 target price on shares of Reddit and gave the company a "sector perform" rating in a research note on Wednesday, June 25th. Guggenheim reissued a "buy" rating and issued a $165.00 target price on shares of Reddit in a research report on Tuesday, June 24th. JPMorgan Chase & Co. decreased their price target on shares of Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a report on Tuesday, April 8th. Piper Sandler reissued an "overweight" rating and set a $150.00 target price (up from $140.00) on shares of Reddit in a research note on Friday, May 2nd. Finally, Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a research report on Saturday, June 14th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have issued a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $144.75.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 14,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $145.63, for a total value of $2,038,820.00. Following the completion of the transaction, the chief executive officer directly owned 539,631 shares of the company's stock, valued at $78,586,462.53. This represents a 2.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Jennifer L. Wong sold 33,334 shares of the stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $142.06, for a total transaction of $4,735,428.04. Following the sale, the chief operating officer owned 1,428,007 shares in the company, valued at approximately $202,862,674.42. This trade represents a 2.28% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 506,809 shares of company stock worth $61,884,325. Corporate insiders own 34.25% of the company's stock.

Hedge Funds Weigh In On Reddit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CWM LLC lifted its stake 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 last quarter. Stone House Investment Management LLC acquired a new position in shares of Reddit during the first quarter worth approximately $31,000. Financial Perspectives Inc acquired a new position in shares of Reddit during the second quarter worth approximately $34,000. Geneos Wealth Management Inc. raised its stake in shares of Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after buying an additional 286 shares during the last quarter. Finally, Canton Hathaway LLC bought a new stake in shares of Reddit during the first quarter worth approximately $43,000.

Reddit Price Performance

The stock has a market cap of $28.83 billion, a P/E ratio of 264.15, a P/E/G ratio of 3.71 and a beta of 2.33. The company's 50 day simple moving average is $133.97 and its 200 day simple moving average is $138.54.

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, beating analysts' consensus estimates of $0.02 by $0.11. The company had revenue of $392.36 million for the quarter, compared to the consensus estimate of $370.55 million. Reddit had a net margin of 8.07% and a return on equity of 5.69%. Reddit's quarterly revenue was up 61.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($8.19) EPS. On average, equities research analysts predict that Reddit Inc. will post 1.12 earnings per share 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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