Reddit (NYSE:RDDT) Shares Up 8.8% – Should You Buy?

Reddit, Inc. (NYSE:RDDT) shares rose 8.8% during trading on Tuesday . The company traded as high as $116.87 and last traded at $116.76. Approximately 2,317,009 shares changed hands during mid-day trading, a decline of 58% from the average daily volume of 5,536,635 shares. The stock had previously closed at $107.29.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on RDDT. Roth Capital downgraded Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Needham & Company LLC raised their price objective on shares of Reddit from $190.00 to $220.00 and gave the stock a “buy” rating in a report on Thursday, February 13th. Roth Mkm cut shares of Reddit from a “buy” rating to a “neutral” rating and upped their target price for the company from $116.00 to $195.00 in a report on Wednesday, January 22nd. Loop Capital lifted their price target on shares of Reddit from $180.00 to $210.00 and gave the stock a “buy” rating in a research note on Thursday, February 13th. Finally, JPMorgan Chase & Co. raised their target price on Reddit from $142.00 to $185.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $175.95.

Reddit Price Performance

The company has a market capitalization of $21.46 billion and a P/E ratio of -15.34. The business has a 50-day moving average of $180.42 and a 200-day moving average of $131.86.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. Sell-side analysts predict that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Benjamin Seong Lee sold 92,299 shares of the business’s stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the sale, the insider now directly owns 115,001 shares of the company’s stock, valued at $18,095,407.35. The trade was a 44.52 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Mary Porter Gale sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $169.71, for a total transaction of $3,394,200.00. Following the sale, the director now directly owns 26,309 shares in the company, valued at $4,464,900.39. The trade was a 43.19 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 393,386 shares of company stock worth $66,673,388 over the last quarter.

Institutional Trading of Reddit

Large investors have recently made changes to their positions in the company. FMR LLC grew its holdings in shares of Reddit by 7.5% during the fourth quarter. FMR LLC now owns 13,070,780 shares of the company’s stock worth $2,136,288,000 after buying an additional 913,189 shares in the last quarter. Vanguard Group Inc. grew its stake in Reddit by 184.2% during the 4th quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock valued at $1,500,606,000 after acquiring an additional 5,950,909 shares in the last quarter. Jennison Associates LLC acquired a new stake in Reddit in the 4th quarter valued at about $494,861,000. Holocene Advisors LP lifted its stake in Reddit by 177.6% in the 3rd quarter. Holocene Advisors LP now owns 3,005,977 shares of the company’s stock worth $198,154,000 after purchasing an additional 1,923,109 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in shares of Reddit by 1,011.1% during the 4th quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock worth $455,795,000 after purchasing an additional 2,537,768 shares during the last quarter.

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.