Reddit (NYSE:RDDT) Reaches New 52-Week High – Time to Buy?

Shares of Reddit, Inc. (NYSE:RDDT) hit a new 52-week high during trading on Wednesday . The stock traded as high as $196.83 and last traded at $194.05, with a volume of 5392908 shares traded. The stock had previously closed at $180.83.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on RDDT shares. Wells Fargo & Company began coverage on shares of Reddit in a research note on Wednesday, December 11th. They issued an “overweight” rating and a $206.00 price objective for the company. Piper Sandler lifted their price target on shares of Reddit from $150.00 to $197.00 and gave the company an “overweight” rating in a research note on Tuesday, January 14th. Sanford C. Bernstein increased their price objective on shares of Reddit from $65.00 to $85.00 and gave the stock an “underperform” rating in a research report on Wednesday, October 30th. JMP Securities raised their target price on Reddit from $160.00 to $190.00 and gave the company a “market outperform” rating in a research note on Monday. Finally, Roth Capital downgraded Reddit from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 22nd. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and a consensus target price of $159.70.

Reddit Stock Performance

The stock’s fifty day simple moving average is $164.41 and its 200-day simple moving average is $105.48.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.23. Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54%. The company had revenue of $348.40 million for the quarter, compared to analyst estimates of $313.61 million. The firm’s revenue was up 67.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Reddit, Inc. will post -3.48 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $113.13, for a total transaction of $1,583,820.00. Following the completion of the transaction, the chief executive officer now owns 651,775 shares in the company, valued at approximately $73,735,305.75. This represents a 2.10 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jennifer L. Wong sold 33,334 shares of the firm’s stock in a transaction dated Thursday, January 16th. The stock was sold at an average price of $173.93, for a total transaction of $5,797,782.62. Following the sale, the chief operating officer now owns 1,504,297 shares of the company’s stock, valued at $261,642,377.21. This trade represents a 2.17 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 264,357 shares of company stock worth $40,449,488.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Ridgewood Investments LLC raised its holdings in shares of Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock worth $33,000 after purchasing an additional 100 shares during the period. Farmers & Merchants Investments Inc. purchased a new stake in Reddit in the fourth quarter worth $33,000. Spire Wealth Management bought a new stake in shares of Reddit in the fourth quarter valued at $35,000. Whittier Trust Co. purchased a new position in shares of Reddit during the 3rd quarter valued at $42,000. Finally, Blue Trust Inc. bought a new position in shares of Reddit during the 4th quarter worth $59,000.

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.