Reddit (NYSE:RDDT) Shares Gap Up – Time to Buy?

Reddit, Inc. (NYSE:RDDT) gapped up before the market opened on Tuesday . The stock had previously closed at $126.20, but opened at $133.65. Reddit shares last traded at $141.76, with a volume of 5,456,443 shares trading hands.

Analysts Set New Price Targets

Several brokerages have commented on RDDT. The Goldman Sachs Group raised their target price on shares of Reddit from $124.00 to $140.00 and gave the stock a “neutral” rating in a report on Friday, May 2nd. JPMorgan Chase & Co. lowered their price target on shares of Reddit from $185.00 to $110.00 and set a “neutral” rating for the company in a report on Tuesday, April 8th. B. Riley reaffirmed a “buy” rating and issued a $220.00 price target (down previously from $222.00) on shares of Reddit in a report on Friday, May 2nd. Roth Capital reissued a “neutral” rating on shares of Reddit in a report on Friday, May 2nd. Finally, JMP Securities reissued a “market outperform” rating and set a $180.00 target price on shares of Reddit in a research report on Friday, May 2nd. 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 assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $139.35.

Reddit Stock Up 6.4%

The company has a market capitalization of $24.77 billion, a P/E ratio of -17.46, a P/E/G ratio of 4.72 and a beta of 1.99. The firm has a fifty day simple moving average of $109.63 and a 200-day simple moving average of $142.72.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.11. The firm had revenue of $392.36 million during the quarter, compared to analyst estimates of $370.55 million. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The business’s revenue was up 61.5% compared to the same quarter last year. During the same period last year, the firm posted ($8.19) EPS. On average, sell-side analysts predict that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Activity at Reddit

In related news, CTO Christopher Brian Slowe sold 11,000 shares of the stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $124.08, for a total value of $1,364,880.00. Following the completion of the sale, the chief technology officer now directly owns 281,213 shares of the company’s stock, valued at approximately $34,892,909.04. This represents a 3.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Andrew Vollero sold 100,000 shares of the firm’s stock in a transaction on Monday, March 24th. The shares were sold at an average price of $124.08, for a total value of $12,408,000.00. Following the completion of the sale, the chief financial officer now owns 499,295 shares of the company’s stock, valued at approximately $61,952,523.60. This trade represents a 16.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 520,134 shares of company stock worth $56,714,433 over the last quarter. Insiders own 34.25% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Plato Investment Management Ltd purchased a new stake in shares of Reddit in the fourth quarter valued at about $27,000. EverSource Wealth Advisors LLC bought a new stake in shares of Reddit during the fourth quarter worth $28,000. Allworth Financial LP increased its stake in shares of Reddit by 970.0% during the fourth quarter. Allworth Financial LP now owns 214 shares of the company’s stock worth $35,000 after purchasing an additional 194 shares during the period. Kestra Investment Management LLC acquired a new position in shares of Reddit during the fourth quarter worth $38,000. Finally, Tucker Asset Management LLC bought a new stake in Reddit during the 4th quarter valued at $39,000.

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.