Reddit (NYSE:RDDT) Trading 4.3% Higher – Time to Buy?

Reddit, Inc. (NYSE:RDDT)’s stock price shot up 4.3% during mid-day trading on Wednesday . The stock traded as high as $136.47 and last traded at $128.02. 4,593,860 shares traded hands during trading, a decline of 18% from the average session volume of 5,577,183 shares. The stock had previously closed at $122.73.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Needham & Company LLC raised their price objective on Reddit from $190.00 to $220.00 and gave the company a “buy” rating in a report on Thursday, February 13th. Citigroup restated a “neutral” rating on shares of Reddit in a report on Thursday, February 13th. Piper Sandler increased their price objective on shares of Reddit from $210.00 to $220.00 and gave the stock an “overweight” rating in a research report on Friday, February 21st. Roth Capital lowered shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Finally, Loop Capital reaffirmed a “buy” rating on shares of Reddit in a research report on Tuesday. One research analyst has rated the stock with a sell rating, nine have given a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $173.45.

Reddit Stock Performance

The company’s 50 day moving average price is $179.61 and its 200-day moving average price is $132.31. The stock has a market cap of $23.98 billion and a P/E ratio of -17.11.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, topping 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%. On average, analysts forecast that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Andrew Vollero sold 48,122 shares of the stock in a transaction that occurred on Monday, February 24th. The shares were sold at an average price of $162.80, for a total transaction of $7,834,261.60. Following the completion of the transaction, the chief financial officer now directly owns 599,295 shares of the company’s stock, valued at $97,565,226. This represents a 7.43 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction that occurred on Friday, January 31st. The stock was sold at an average price of $201.96, for a total transaction of $2,827,440.00. Following the completion of the sale, the chief executive officer now directly owns 614,394 shares in the company, valued at $124,083,012.24. This trade represents a 2.23 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 393,386 shares of company stock valued at $66,673,388 over the last three months.

Hedge Funds Weigh In On Reddit

Several institutional investors and hedge funds have recently bought and sold shares of RDDT. Plato Investment Management Ltd bought a new stake in shares of Reddit in the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC purchased a new stake in Reddit in the 4th quarter worth about $28,000. Ridgewood Investments LLC raised its stake in Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after acquiring an additional 100 shares during the period. Farmers & Merchants Investments Inc. bought a new stake in Reddit in the 4th quarter valued at about $33,000. Finally, Bogart Wealth LLC purchased a new stake in Reddit during the fourth quarter valued at about $33,000.

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.