Reddit (NYSE:RDDT) Stock Price Up 7.4% - Here's What Happened

Key Points

• 7.4% rally: Reddit shares jumped to $262.15 on Tuesday (session high $262.00) with 3,166,759 shares traded, about 10% below average after a prior close of $244.02.
• Earnings beat: Reddit reported $0.80 EPS vs. $0.50 expected and revenue of $584.9M vs. $546.7M expected, a 67.9% year‑over‑year revenue increase.
• Analyst momentum: Several firms raised price targets (e.g., Morgan Stanley to $265, Oppenheimer to $300), and MarketBeat shows a consensus rating of Moderate Buy with an average target of $238.57.

Reddit Inc. (NYSE:RDDT - Get Free Report)'s share price traded up 7.4% during trading on Tuesday . The stock traded as high as $262.00 and last traded at $262.1480. 3,166,759 shares traded hands during trading, a decline of 10% from the average session volume of 3,524,540 shares. The stock had previously closed at $244.02.

Analyst Ratings Changes

A number of brokerages have weighed in on RDDT. Robert W. Baird lifted their target price on Reddit from $177.00 to $240.00 and gave the stock a "neutral" rating in a report on Thursday, September 25th. Bank of America raised their price objective on shares of Reddit from $180.00 to $210.00 and gave the stock a "neutral" rating in a research report on Friday, October 31st. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a research report on Saturday. Morgan Stanley raised their price target on shares of Reddit from $250.00 to $265.00 and gave the stock an "overweight" rating in a report on Tuesday. Finally, Oppenheimer lifted their price target on shares of Reddit from $215.00 to $300.00 and gave the company an "outperform" rating in a research note on Tuesday, September 16th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus price target of $238.57.

Reddit Stock Up 6.1%

The stock has a market capitalization of $49.06 billion, a P/E ratio of 148.80, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. The business's 50 day simple moving average is $219.20 and its two-hundred day simple moving average is $208.50.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The company had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. During the same quarter in the prior year, the business posted $0.16 EPS. The firm's revenue was up 67.9% compared to the same quarter last year. Analysts predict that Reddit Inc. will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 63,427 shares of the company's stock in a transaction on Monday, November 24th. The stock was sold at an average price of $192.72, for a total transaction of $12,223,651.44. Following the completion of the sale, the chief operating officer owned 1,184,528 shares in the company, valued at approximately $228,282,236.16. This represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Benjamin Seong Lee sold 55,005 shares of the stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $221.21, for a total value of $12,167,656.05. Following the completion of the sale, the insider directly owned 62,608 shares of the company's stock, valued at $13,849,515.68. The trade was a 46.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 519,496 shares of company stock worth $111,590,512 over the last three months. Company insiders own 34.25% of the company's stock.

Institutional Investors Weigh In On Reddit

A number of institutional investors have recently added to or reduced their stakes in the company. Teacher Retirement System of Texas increased its stake in shares of Reddit by 880.5% in the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company's stock worth $14,255,000 after acquiring an additional 85,020 shares in the last quarter. Union Bancaire Privee UBP SA purchased a new position in Reddit in the 2nd quarter worth about $2,078,000. J. Safra Sarasin Holding AG bought a new position in Reddit during the second quarter valued at approximately $226,000. Plato Investment Management Ltd raised its stake in Reddit by 120.2% during the 2nd quarter. Plato Investment Management Ltd now owns 2,970 shares of the company's stock valued at $446,000 after buying an additional 1,621 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey purchased a new position in Reddit in the second quarter worth about $2,666,000.

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.

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