Reddit (NYSE:RDDT) Shares Gap Up on Strong Earnings

Reddit, Inc. (NYSE:RDDT)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $116.57, but opened at $125.64. Reddit shares last traded at $119.49, with a volume of 983,604 shares changing hands.

The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.11. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. The firm had revenue of $392.36 million for the quarter, compared to analyst estimates of $370.55 million. During the same period in the previous year, the business earned ($8.19) EPS. The company’s revenue was up 61.5% compared to the same quarter last year.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. B. Riley restated a “buy” rating and issued a $220.00 price target (down from $222.00) on shares of Reddit in a research note on Friday. Redburn Partners set a $75.00 target price on shares of Reddit in a research note on Monday, March 17th. Roth Mkm boosted their target price on shares of Reddit from $120.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday. Redburn Atlantic started coverage on shares of Reddit in a research note on Monday, March 17th. They issued a “sell” rating and a $75.00 price target for the company. Finally, Bank of America lowered their price objective on shares of Reddit from $190.00 to $110.00 and set a “neutral” rating on the stock in a research note on Wednesday, April 9th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $142.30.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 124,408 shares of the stock in a transaction on Friday, March 14th. The stock was sold at an average price of $127.36, for a total transaction of $15,844,602.88. Following the sale, the chief executive officer now directly owns 583,515 shares of the company’s stock, valued at approximately $74,316,470.40. This represents a 17.57 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Christopher Brian Slowe sold 5,068 shares of the business’s stock in a transaction dated Thursday, April 24th. The shares were sold at an average price of $111.28, for a total value of $563,967.04. Following the completion of the transaction, the chief technology officer now directly owns 20,184 shares of the company’s stock, valued at approximately $2,246,075.52. This trade represents a 20.07 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 711,270 shares of company stock valued at $94,239,985 in the last quarter.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RDDT. Everence Capital Management Inc. acquired a new stake in shares of Reddit in the 4th quarter valued at $531,000. Watts Gwilliam & Co. LLC acquired a new stake in Reddit in the fourth quarter valued at about $337,000. Ridgewood Investments LLC grew its position in Reddit by 100.0% in the fourth 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 last quarter. Westmount Partners LLC acquired a new position in Reddit during the fourth quarter worth about $391,000. Finally, Sivia Capital Partners LLC lifted its holdings in shares of Reddit by 277.6% in the fourth quarter. Sivia Capital Partners LLC now owns 184,577 shares of the company’s stock worth $30,167,000 after acquiring an additional 135,700 shares during the last quarter.

Reddit Trading Down 4.9 %

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

Reddit Company Profile

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.