Reddit (NYSE:RDDT) Shares Up 2.8% – Should You Buy?

Reddit, Inc. (NYSE:RDDT)’s stock price was up 2.8% on Tuesday . The company traded as high as $107.71 and last traded at $107.83. Approximately 1,240,076 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 5,312,696 shares. The stock had previously closed at $104.90.

Analyst Upgrades and Downgrades

RDDT has been the topic of several recent research reports. Raymond James dropped their target price on shares of Reddit from $250.00 to $200.00 and set a “strong-buy” rating on the stock in a report on Wednesday, March 12th. Roth Capital lowered Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Morgan Stanley lifted their price target on Reddit from $200.00 to $210.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Redburn Atlantic began coverage on Reddit in a research report on Monday, March 17th. They set a “sell” rating and a $75.00 price objective on the stock. Finally, Redburn Partners set a $75.00 price target on shares of Reddit in a report on Monday, March 17th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $163.00.

Reddit Stock Performance

The company has a market cap of $20.02 billion and a price-to-earnings ratio of -14.28. The company’s fifty day moving average is $164.53 and its two-hundred day moving average is $138.13.

Reddit (NYSE:RDDT) last issued its earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) 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, sell-side analysts anticipate that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $172.79, for a total transaction of $2,419,060.00. Following the sale, the chief executive officer now directly owns 614,394 shares in the company, valued at $106,161,139.26. This trade represents a 2.23 % 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, CTO Christopher Brian Slowe sold 11,000 shares of the company’s stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $124.08, for a total value of $1,364,880.00. Following the completion of the transaction, the chief technology officer now directly owns 281,213 shares of the company’s stock, valued at $34,892,909.04. The trade was a 3.76 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 589,794 shares of company stock worth $87,940,784 over the last quarter.

Institutional Investors Weigh In On Reddit

A number of institutional investors have recently added to or reduced their stakes in RDDT. Plato Investment Management Ltd purchased a new position in Reddit during the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC purchased a new stake in Reddit during the 4th quarter worth approximately $28,000. Ridgewood Investments LLC lifted its holdings 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 purchasing an additional 100 shares in the last quarter. Farmers & Merchants Investments Inc. acquired a new stake in Reddit during the 4th quarter worth $33,000. Finally, Bogart Wealth LLC acquired a new stake in shares of Reddit in 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.