Reddit (NYSE:RDDT) Shares Gap Up - Should You Buy?

Key Points

• Reddit Inc. shares gapped up from $200.92 to $212.02 before closing at $206.97, with a trading volume of over 2.6 million shares.
• Analysts have set various price targets for Reddit, ranging from $145.00 to $300.00, with a majority rating the stock as a Moderate Buy.
• Insider transactions included CFO Andrew Vollero selling 30,000 shares, resulting in a 9.55% decrease in their ownership stake, raising concerns about insider selling amidst stock price increases.

Reddit Inc. (NYSE:RDDT - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $200.92, but opened at $212.02. Reddit shares last traded at $206.97, with a volume of 2,640,263 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on RDDT shares. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $212.00 price objective on shares of Reddit in a report on Friday, August 1st. Piper Sandler reaffirmed an "overweight" rating and set a $290.00 price target on shares of Reddit in a report on Friday. JMP Securities restated a "market outperform" rating and set a $300.00 target price on shares of Reddit in a report on Friday. Raymond James Financial reiterated a "strong-buy" rating and set a $225.00 price target (up previously from $175.00) on shares of Reddit in a research report on Friday, August 1st. Finally, Roth Capital boosted their target price on shares of Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $201.58.

Reddit Trading Up 3.1%

The firm's 50 day moving average is $223.61 and its two-hundred day moving average is $155.56. The firm has a market cap of $38.79 billion, a P/E ratio of 188.40, a price-to-earnings-growth ratio of 3.19 and a beta of 2.23.

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, topping the consensus estimate of $0.20 by $0.25. Reddit had a net margin of 12.97% and a return on equity of 9.93%. The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. During the same period last year, the business posted ($0.06) earnings per share. The business's revenue for the quarter was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. Analysts predict that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $218.09, for a total transaction of $6,542,700.00. Following the completion of the sale, the chief financial officer owned 284,168 shares of the company's stock, valued at $61,974,199.12. This represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Jennifer L. Wong sold 40,967 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.38, for a total transaction of $9,028,307.46. Following the sale, the chief operating officer directly owned 120,033 shares of the company's stock, valued at $26,452,872.54. This represents a 25.45% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 397,834 shares of company stock worth $86,512,599. Company insiders own 34.25% of the company's stock.

Hedge Funds Weigh In On Reddit

Large investors have recently modified their holdings of the business. CWM LLC boosted its stake in shares of Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after buying an additional 128 shares during the last quarter. Stone House Investment Management LLC bought a new position in Reddit in the first quarter valued at approximately $31,000. Financial Perspectives Inc bought a new position in Reddit in the second quarter valued at approximately $34,000. Geneos Wealth Management Inc. grew its stake in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter. Finally, GAMMA Investing LLC boosted its holdings in shares of Reddit by 8,650.0% in the 3rd quarter. GAMMA Investing LLC now owns 175 shares of the company's stock valued at $40,000 after buying an additional 173 shares during the last quarter.

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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