Reddit (NYSE:RDDT) Sees Large Volume Increase Following Earnings Beat

Reddit, Inc. (NYSE:RDDT) shares saw strong trading volume on Friday after the company announced better than expected quarterly earnings. 9,520,725 shares traded hands during trading, an increase of 66% from the previous session’s volume of 5,721,268 shares.The stock last traded at $122.63 and had previously closed at $118.79.

The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.11. The firm had revenue of $392.36 million during the quarter, compared to analysts’ expectations of $370.55 million. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The firm’s revenue for the quarter was up 61.5% on a year-over-year basis. During the same period in the prior year, the company posted ($8.19) earnings per share.

Wall Street Analyst Weigh In

Several equities research analysts have commented on RDDT shares. Sanford C. Bernstein upgraded shares of Reddit from an “underperform” rating to a “market perform” rating and set a $130.00 target price on the stock in a research report on Friday. Roth Capital downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Redburn Atlantic began coverage on Reddit in a report on Monday, March 17th. They issued a “sell” rating and a $75.00 target price on the stock. Wells Fargo & Company increased their target price on Reddit from $158.00 to $168.00 and gave the company an “overweight” rating in a report on Friday. Finally, Needham & Company LLC lifted their price target on shares of Reddit from $135.00 to $145.00 and gave the stock a “buy” rating in a report on Friday. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Reddit has an average rating of “Moderate Buy” and a consensus price target of $142.30.

Insider Activity at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 14,000 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $187.78, for a total transaction of $2,628,920.00. Following the transaction, the chief executive officer now directly owns 614,394 shares in the company, valued at $115,370,905.32. This represents a 2.23 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Jennifer L. Wong sold 33,333 shares of the business’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $187.72, for a total transaction of $6,257,270.76. Following the completion of the sale, the chief operating officer now directly owns 1,504,297 shares of the company’s stock, valued at $282,386,632.84. The trade was a 2.17 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 711,270 shares of company stock valued at $94,239,985.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Plato Investment Management Ltd bought a new stake in shares of Reddit in the 4th quarter valued at approximately $27,000. CWM LLC boosted its holdings in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company’s stock worth $27,000 after purchasing an additional 128 shares during the period. EverSource Wealth Advisors LLC bought a new stake in Reddit during the fourth quarter valued at $28,000. Ridgewood Investments LLC raised its holdings in shares of Reddit by 100.0% during the fourth 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. Finally, Farmers & Merchants Investments Inc. bought a new position in shares of Reddit in the 4th quarter worth about $33,000.

Reddit Trading Down 4.9 %

The stock’s 50-day moving average price is $116.82 and its 200-day moving average price is $143.22. The company has a market capitalization of $20.44 billion, a P/E ratio of -14.62, a P/E/G ratio of 4.72 and a beta of 2.89.

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.