Reddit (NYSE:RDDT) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Reddit Inc. (NYSE:RDDT) shares saw strong trading volume on Friday following a stronger than expected earnings report. 6,973,631 shares changed hands during trading, a decline of 10% from the previous session’s volume of 7,748,206 shares.The stock last traded at $186.61 and had previously closed at $160.59.

The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.25. The firm had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. Reddit had a return on equity of 10.26% and a net margin of 12.97%. The company’s revenue was up 77.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.06) earnings per share.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $212.00 price objective on shares of Reddit in a report on Friday. Needham & Company LLC boosted their target price on shares of Reddit from $165.00 to $215.00 and gave the company a “buy” rating in a research report on Friday. Roth Mkm increased their price target on Reddit from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Friday, May 2nd. Wells Fargo & Company lifted their price objective on Reddit from $115.00 to $118.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 1st. Finally, Raymond James Financial reissued a “strong-buy” rating and issued a $225.00 price objective (up previously from $175.00) on shares of Reddit in a report on Friday. One analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average target price of $164.21.

Insiders Place Their Bets

In other news, COO Jennifer L. Wong sold 33,334 shares of Reddit stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $142.06, for a total value of $4,735,428.04. Following the sale, the chief operating officer owned 1,428,007 shares in the company, valued at $202,862,674.42. This trade represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Steve Ladd Huffman sold 124,409 shares of the business’s stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $124.45, for a total transaction of $15,482,700.05. Following the sale, the chief executive officer directly owned 546,133 shares of the company’s stock, valued at $67,966,251.85. This represents a 18.55% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 506,809 shares of company stock worth $61,884,325. Corporate insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its stake in Reddit by 5.6% in the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 20,600 shares of the company’s stock valued at $3,102,000 after purchasing an additional 1,100 shares during the last quarter. AustralianSuper Pty Ltd purchased a new stake in shares of Reddit during the second quarter worth $1,219,000. Teacher Retirement System of Texas raised its position in shares of Reddit by 880.5% in the second quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock valued at $14,255,000 after buying an additional 85,020 shares during the last quarter. Nisa Investment Advisors LLC raised its position in shares of Reddit by 44.5% in the second quarter. Nisa Investment Advisors LLC now owns 13,782 shares of the company’s stock valued at $2,075,000 after buying an additional 4,245 shares during the last quarter. Finally, Wealthfront Advisers LLC purchased a new position in shares of Reddit in the second quarter worth about $308,000.

Reddit Stock Up 17.4%

The stock has a market capitalization of $34.80 billion, a price-to-earnings ratio of 171.45, a price-to-earnings-growth ratio of 4.05 and a beta of 2.31. The business’s 50-day moving average is $136.97 and its two-hundred day moving average is $138.67.

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.