Reddit (NYSE:RDDT) Trading Up 7% - Should You Buy?

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) shot up 7% on Monday . The stock traded as high as $150.25 and last traded at $153.04. 1,442,507 shares changed hands during trading, a decline of 82% from the average session volume of 7,999,491 shares. The stock had previously closed at $143.01.

Analyst Ratings Changes

RDDT has been the topic of a number of recent analyst reports. Citigroup upped their target price on shares of Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research note on Tuesday, June 24th. Redburn Atlantic assumed coverage on Reddit in a report on Monday, March 17th. They issued a "sell" rating and a $75.00 price objective for the company. JPMorgan Chase & Co. reduced their target price on Reddit from $185.00 to $110.00 and set a "neutral" rating on the stock in a report on Tuesday, April 8th. Truist Financial started coverage on Reddit in a research report on Monday, April 7th. They issued a "buy" rating and a $150.00 target price for the company. Finally, JMP Securities reissued a "market outperform" rating and set a $180.00 price target on shares of Reddit in a research report on Friday, May 2nd. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and a consensus price target of $139.70.

Reddit Stock Up 1.5%

The firm has a market capitalization of $28.20 billion, a price-to-earnings ratio of 259.46, a P/E/G ratio of 3.67 and a beta of 2.02. The company has a 50-day moving average price of $117.82 and a 200-day moving average price of $141.48.

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

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 124,409 shares of the company's stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $124.45, for a total value of $15,482,700.05. Following the completion of the sale, the chief executive officer directly owned 546,133 shares of the company's stock, valued at approximately $67,966,251.85. This represents a 18.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Michelle Marie Reynolds sold 3,500 shares of the business's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $150.64, for a total value of $527,240.00. Following the sale, the chief accounting officer directly owned 37,868 shares in the company, valued at approximately $5,704,435.52. The trade was a 8.46% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 603,285 shares of company stock valued at $67,480,210. Corporate insiders own 34.25% of the company's stock.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently modified their holdings of the company. Plato Investment Management Ltd bought a new stake in Reddit in the fourth quarter worth about $27,000. CWM LLC grew its stake in shares of Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after purchasing an additional 128 shares during the last quarter. EverSource Wealth Advisors LLC acquired a new position in shares of Reddit in the 4th quarter worth approximately $28,000. Stone House Investment Management LLC bought a new stake in shares of Reddit in the 1st quarter worth approximately $31,000. Finally, Tucker Asset Management LLC acquired a new stake in Reddit during the fourth quarter valued at approximately $39,000.

About Reddit

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.