Reddit (NYSE:RDDT) Hits New 52-Week High – Still a Buy?

Reddit, Inc. (NYSE:RDDT)’s share price hit a new 52-week high during trading on Friday . The company traded as high as $159.83 and last traded at $158.51, with a volume of 2896370 shares trading hands. The stock had previously closed at $153.09.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of recent research reports. Citigroup upped their price objective on shares of Reddit from $70.00 to $120.00 and gave the stock a “buy” rating in a report on Wednesday, October 30th. Sanford C. Bernstein boosted their price objective on shares of Reddit from $65.00 to $85.00 and gave the stock an “underperform” rating in a report on Wednesday, October 30th. Loop Capital boosted their price target on Reddit from $120.00 to $180.00 and gave the stock a “buy” rating in a research note on Monday. Needham & Company LLC boosted their target price on Reddit from $85.00 to $120.00 and gave the stock a “buy” rating in a research report on Wednesday, October 30th. Finally, Raymond James raised their price target on shares of Reddit from $70.00 to $80.00 and gave the company a “strong-buy” rating in a report on Thursday, October 10th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $103.17.

Reddit Stock Performance

The stock has a 50-day moving average price of $106.37 and a two-hundred day moving average price of $76.76.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.23. The business had revenue of $348.40 million during the quarter, compared to analyst estimates of $313.61 million. Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54%. Reddit’s revenue was up 67.9% on a year-over-year basis. As a group, sell-side analysts predict that Reddit, Inc. will post -3.63 earnings per share for the current year.

Insider Activity at Reddit

In related news, CFO Andrew Vollero sold 19,838 shares of the firm’s stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $143.22, for a total transaction of $2,841,198.36. Following the sale, the chief financial officer now owns 703,615 shares of the company’s stock, valued at $100,771,740.30. This trade represents a 2.74 % 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 14,000 shares of the firm’s stock in a transaction that occurred on Monday, September 16th. The shares were sold at an average price of $59.19, for a total transaction of $828,660.00. Following the completion of the sale, the chief executive officer now owns 651,775 shares of the company’s stock, valued at approximately $38,578,562.25. This trade represents a 2.10 % 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 over the last 90 days.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of RDDT. Whittier Trust Co. purchased a new stake in shares of Reddit in the 3rd quarter valued at $42,000. SOA Wealth Advisors LLC. acquired a new stake in Reddit during the 2nd quarter worth about $78,000. Daiwa Securities Group Inc. purchased a new position in shares of Reddit during the 3rd quarter valued at about $85,000. UMB Bank n.a. purchased a new position in Reddit during the second quarter valued at approximately $88,000. Finally, Sanctuary Advisors LLC purchased a new stake in Reddit during the third quarter worth $144,000.

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.