Reddit Sees Unusually Large Options Volume (NYSE:RDDT)

Reddit, Inc. (NYSE:RDDT) was the target of unusually large options trading activity on Friday. Traders purchased 74,337 call options on the company. This represents an increase of approximately 48% compared to the typical volume of 50,345 call options.

Reddit Price Performance

Shares of RDDT stock opened at $113.01 on Friday. The business has a 50-day moving average of $116.82 and a 200 day moving average of $143.22. Reddit has a 1-year low of $46.24 and a 1-year high of $230.41. The stock has a market capitalization of $20.44 billion, a PE ratio of -14.62, a P/E/G ratio of 4.72 and a beta of 2.89.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, May 1st. The company reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.11. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The firm had revenue of $392.36 million during the quarter, compared to analyst estimates of $370.55 million. During the same quarter in the prior year, the firm posted ($8.19) earnings per share. The business’s quarterly revenue was up 61.5% compared to the same quarter last year. Analysts anticipate that Reddit will post 1.12 EPS for the current year.

Insider Buying and Selling

In other Reddit news, CEO Steve Ladd Huffman sold 124,408 shares of the business’s stock in a transaction on Friday, March 14th. The stock was sold at an average price of $127.36, for a total value of $15,844,602.88. Following the sale, the chief executive officer now directly owns 583,515 shares in the company, valued at $74,316,470.40. The trade was a 17.57 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Christopher Brian Slowe sold 5,068 shares of the stock in a transaction on Thursday, April 24th. The stock was sold at an average price of $111.28, for a total value of $563,967.04. Following the transaction, the chief technology officer now owns 20,184 shares of the company’s stock, valued at $2,246,075.52. The trade was a 20.07 % 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 worth $94,239,985.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently modified their holdings of RDDT. Vanguard Group Inc. increased its holdings in Reddit by 184.2% during the 4th quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock valued at $1,500,606,000 after purchasing an additional 5,950,909 shares during the period. Jennison Associates LLC purchased a new position in shares of Reddit during the fourth quarter valued at approximately $494,861,000. Alliancebernstein L.P. raised its holdings in shares of Reddit by 1,011.1% during the fourth quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock valued at $455,795,000 after acquiring an additional 2,537,768 shares in the last quarter. Brooklyn FI LLC purchased a new stake in Reddit in the fourth quarter worth $303,082,000. Finally, GQG Partners LLC bought a new stake in Reddit in the fourth quarter valued at $271,539,000.

Analyst Upgrades and Downgrades

RDDT has been the subject of several analyst reports. Truist Financial assumed coverage on shares of Reddit in a report on Monday, April 7th. They issued a “buy” rating and a $150.00 price objective for the company. Wells Fargo & Company lifted their price target on Reddit from $158.00 to $168.00 and gave the company an “overweight” rating in a research report on Friday. Needham & Company LLC increased their price objective on Reddit from $135.00 to $145.00 and gave the stock a “buy” rating in a report on Friday. Oppenheimer initiated coverage on Reddit in a report on Wednesday, April 16th. They set an “outperform” rating and a $125.00 target price for the company. Finally, Citigroup increased their price target on shares of Reddit from $150.00 to $158.00 and gave the stock a “buy” rating in a report on Friday. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $142.30.

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.