Reddit (NYSE:RDDT) Shares Gap Up – Here’s What Happened

Reddit, Inc. (NYSE:RDDT) gapped up before the market opened on Friday . The stock had previously closed at $113.59, but opened at $117.50. Reddit shares last traded at $114.32, with a volume of 1,619,590 shares changing hands.

Wall Street Analyst Weigh In

RDDT has been the topic of a number of recent analyst reports. Raymond James reduced their price objective on shares of Reddit from $250.00 to $200.00 and set a “strong-buy” rating on the stock in a research report on Wednesday, March 12th. The Goldman Sachs Group increased their target price on Reddit from $124.00 to $140.00 and gave the company a “neutral” rating in a research report on Friday, May 2nd. Oppenheimer initiated coverage on Reddit in a report on Wednesday, April 16th. They set an “outperform” rating and a $125.00 price objective for the company. Bank of America reduced their price objective on Reddit from $190.00 to $110.00 and set a “neutral” rating for the company in a research note on Wednesday, April 9th. Finally, Redburn Atlantic started coverage on Reddit in a research report on Monday, March 17th. They set a “sell” rating and a $75.00 target price on the stock. One research analyst has rated the stock with a sell rating, seven have given a hold rating, thirteen have assigned a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $143.77.

Reddit Trading Down 0.2%

The stock has a market capitalization of $20.92 billion, a PE ratio of -14.66, a PEG ratio of 4.72 and a beta of 2.90. The company’s 50 day simple moving average is $109.40 and its 200 day simple moving average is $145.72.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, May 1st. The company reported $0.13 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%. Reddit’s revenue for the quarter was up 61.5% on a year-over-year basis. During the same period in the previous year, the company earned ($8.19) EPS. As a group, analysts predict that Reddit, Inc. will post 1.12 EPS for the current year.

Insider Activity

In other news, Director David C. Habiger acquired 774 shares of the business’s stock in a transaction on Wednesday, March 12th. The shares were purchased at an average price of $130.36 per share, for a total transaction of $100,898.64. Following the acquisition, the director now directly owns 30,808 shares of the company’s stock, valued at $4,016,130.88. This represents a 2.58% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew Vollero sold 48,122 shares of the business’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $162.80, for a total transaction of $7,834,261.60. Following the completion of the transaction, the chief financial officer now owns 599,295 shares in the company, valued at $97,565,226. This represents a 7.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold 725,270 shares of company stock valued at $95,789,365 in the last ninety days.

Institutional Investors Weigh In On Reddit

A number of institutional investors have recently modified their holdings of RDDT. Plato Investment Management Ltd bought a new position in Reddit in the 4th quarter worth about $27,000. EverSource Wealth Advisors LLC acquired a new stake in shares of Reddit in the 4th quarter worth approximately $28,000. Farmers & Merchants Investments Inc. acquired a new stake in shares of Reddit in the 4th quarter worth approximately $33,000. Bogart Wealth LLC acquired a new stake in shares of Reddit in the 4th quarter worth approximately $33,000. Finally, Allworth Financial LP lifted its stake in shares of Reddit by 970.0% in the 4th quarter. Allworth Financial LP now owns 214 shares of the company’s stock worth $35,000 after acquiring an additional 194 shares during the period.

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.