Reddit (NYSE:RDDT) Shares Gap Up Following Analyst Upgrade

Reddit, Inc. (NYSE:RDDT) gapped up prior to trading on Wednesday after Needham & Company LLC raised their price target on the stock from $120.00 to $190.00. The stock had previously closed at $155.93, but opened at $164.00. Needham & Company LLC currently has a buy rating on the stock. Reddit shares last traded at $162.80, with a volume of 1,021,015 shares traded.

Several other research firms also recently commented on RDDT. Loop Capital lifted their price objective on Reddit from $120.00 to $180.00 and gave the stock a “buy” rating in a report on Monday, December 2nd. B. Riley reiterated a “buy” rating and issued a $112.00 price objective (up from $87.00) on shares of Reddit in a report on Wednesday, October 30th. Morgan Stanley upgraded Reddit from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $70.00 to $200.00 in a research note on Monday. JMP Securities boosted their price target on Reddit from $118.00 to $160.00 and gave the company a “market outperform” rating in a research note on Monday, November 25th. Finally, Citigroup boosted their price target on Reddit from $70.00 to $120.00 and gave the company a “buy” rating in a research note on Wednesday, October 30th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $124.42.

Insider Activity

In related news, insider Benjamin Seong Lee sold 18,519 shares of the business’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $146.06, for a total value of $2,704,885.14. Following the transaction, the insider now directly owns 138,401 shares of the company’s stock, valued at approximately $20,214,850.06. The trade was a 11.80 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Jennifer L. Wong sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, September 19th. The stock was sold at an average price of $65.01, for a total value of $3,250,500.00. Following the completion of the transaction, the chief operating officer now directly owns 1,542,457 shares in the company, valued at approximately $100,275,129.57. This represents a 3.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 325,644 shares of company stock valued at $31,195,790 in the last ninety days.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RDDT. SOA Wealth Advisors LLC. bought a new stake in Reddit in the 2nd quarter worth approximately $78,000. Sumitomo Mitsui Trust Holdings Inc. bought a new stake in Reddit in the 2nd quarter worth approximately $19,876,000. Raymond James & Associates increased its stake in Reddit by 706.1% in the 2nd quarter. Raymond James & Associates now owns 42,641 shares of the company’s stock worth $2,724,000 after acquiring an additional 37,351 shares during the last quarter. Carnegie Investment Counsel bought a new stake in Reddit in the 2nd quarter worth approximately $8,068,000. Finally, Bank of New York Mellon Corp increased its stake in Reddit by 10.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 1,663,603 shares of the company’s stock worth $106,288,000 after acquiring an additional 153,282 shares during the last quarter.

Reddit Stock Up 6.4 %

The stock has a 50 day simple moving average of $112.11 and a 200-day simple moving average of $79.25.

Reddit (NYSE:RDDT) last released its earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.23. The firm had revenue of $348.40 million for the quarter, compared to the consensus estimate of $313.61 million. Reddit had a negative return on equity of 40.54% and a negative net margin of 47.83%. The business’s quarterly revenue was up 67.9% on a year-over-year basis. On average, sell-side analysts expect that Reddit, Inc. will post -3.54 earnings per share for the current year.

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.