Reddit (NYSE:RDDT) Shares Up 8% - Should You Buy?

Key Points

• Reddit shares rose 8% in Wednesday trading, briefly reaching $189.90 before settling near $187.41, as volume came in well below average.
• Analyst sentiment remains mixed but generally positive, with an average rating of “Moderate Buy” and an average price target of $230.75, though some firms recently trimmed targets or downgraded the stock.
• Recent fundamentals were strong: Reddit reported quarterly EPS of $1.01 versus $0.62 expected, revenue of $663.41 million versus $607.74 million expected, and revenue growth of 69.1% year over year.

Reddit Inc. (NYSE:RDDT - Get Free Report)'s stock price traded up 8% during trading on Wednesday . The company traded as high as $189.90 and last traded at $187.4080. Approximately 1,480,596 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 5,164,827 shares. The stock had previously closed at $173.58.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Wells Fargo & Company boosted their price objective on Reddit from $149.00 to $176.00 and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Citizens Jmp dropped their target price on Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a report on Friday, May 1st. Zacks Research downgraded Reddit from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. The Goldman Sachs Group restated a "neutral" rating and set a $200.00 price target on shares of Reddit in a report on Friday, May 1st. Finally, Rothschild & Co Redburn set a $110.00 price target on Reddit in a research report on Monday, April 27th. Eighteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat.com, Reddit currently has an average rating of "Moderate Buy" and an average target price of $230.75.

Reddit Trading Up 13.5%

The company has a 50-day simple moving average of $162.94 and a 200 day simple moving average of $172.21. The company has a market cap of $37.92 billion, a P/E ratio of 56.30 and a beta of 1.91.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business's revenue for the quarter was up 69.1% compared to the same quarter last year. During the same period last year, the company earned $0.13 earnings per share. On average, equities analysts forecast that Reddit Inc. will post 4.83 EPS for the current fiscal year.

Insider Activity at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 15,500 shares of the company's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the transaction, the chief technology officer directly owned 38,413 shares in the company, valued at $5,787,686.71. This represents a 28.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $185,846,982.66. This trade represents a 3.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 223,000 shares of company stock worth $36,913,785 in the last 90 days. 28.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RDDT. NewEdge Advisors LLC lifted its holdings in shares of Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock worth $837,000 after buying an additional 4,701 shares during the period. Empowered Funds LLC bought a new stake in shares of Reddit in the first quarter valued at about $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock valued at $22,759,000 after acquiring an additional 111,780 shares in the last quarter. Focus Partners Wealth lifted its stake in Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock worth $1,073,000 after acquiring an additional 2,965 shares during the period. Finally, Geneos Wealth Management Inc. grew its holdings in Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares in the last quarter.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.