Reddit (NYSE:RDDT) Shares Up 9.4% on Analyst Upgrade

Reddit Inc. (NYSE:RDDT)’s stock price traded up 9.4% during mid-day trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $153.23 and last traded at $153.8380. 6,331,408 shares changed hands during trading, an increase of 20% from the average daily volume of 5,283,828 shares. The stock had previously closed at $140.67.

Other analysts have also issued reports about the company. Loop Capital reissued a “buy” rating and set a $260.00 target price on shares of Reddit in a report on Thursday, June 4th. Telsey Advisory Group set a $240.00 price target on Reddit in a research note on Friday. Robert W. Baird set a $185.00 price objective on shares of Reddit in a research note on Friday. Wells Fargo & Company decreased their target price on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, UBS Group restated a “buy” rating on shares of Reddit in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and an average target price of $220.90.

Insider Buying and Selling

In other Reddit news, COO Jennifer L. Wong sold 39,166 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the sale, the chief operating officer directly owned 1,050,339 shares of the company’s stock, valued at $185,846,982.66. The trade was a 3.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares of the company’s stock, valued at approximately $64,718,417.82. This trade represents a 4.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 169,141 shares of company stock worth $28,680,845 in the last ninety days. Company insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several institutional investors and hedge funds have recently made changes to their positions in RDDT. Capital World Investors bought a new position in shares of Reddit during the fourth quarter worth about $1,293,258,000. Norges Bank bought a new position in Reddit during the fourth quarter worth $372,047,000. Invesco Ltd. grew its stake in shares of Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after buying an additional 1,201,237 shares during the period. State Street Corp grew its stake in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company’s stock valued at $305,678,000 after acquiring an additional 1,178,890 shares during the period. Finally, Vanguard Group Inc. increased its stake in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares in the last quarter.

Reddit Price Performance

The business’s fifty day moving average price is $176.72 and its 200-day moving average price is $164.36. The stock has a market capitalization of $29.68 billion, a price-to-earnings ratio of 35.74 and a beta of 2.04.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.97%. The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. During the same quarter in the prior year, the business posted $0.45 EPS. The firm’s revenue was up 61.0% compared to the same quarter last year. Equities research analysts predict that Reddit Inc. will post 4.85 earnings per share for the current fiscal year.

About Reddit

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.