Investors Buy Large Volume of Call Options on Reddit (NYSE:RDDT)

Reddit, Inc. (NYSE:RDDT) saw unusually large options trading on Friday. Stock traders purchased 74,337 call options on the stock. This represents an increase of approximately 48% compared to the average daily volume of 50,345 call options.

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $187.78, for a total value of $2,628,920.00. Following the sale, the chief executive officer now directly owns 614,394 shares of the company’s stock, valued at approximately $115,370,905.32. This trade represents a 2.23 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Andrew Vollero sold 48,122 shares of Reddit stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $162.80, for a total value of $7,834,261.60. Following the completion of the transaction, the chief financial officer now directly owns 599,295 shares in the company, valued at approximately $97,565,226. This represents a 7.43 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 711,270 shares of company stock worth $94,239,985.

Institutional Trading of Reddit

A number of hedge funds and other institutional investors have recently modified their holdings of RDDT. Vanguard Group Inc. grew its stake in Reddit by 184.2% in the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock valued at $1,500,606,000 after purchasing an additional 5,950,909 shares in the last quarter. Jennison Associates LLC acquired a new stake in shares of Reddit in the 4th quarter valued at approximately $494,861,000. Alliancebernstein L.P. grew its stake in shares of Reddit by 1,011.1% in the fourth quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock valued at $455,795,000 after buying an additional 2,537,768 shares in the last quarter. Brooklyn FI LLC acquired a new position in Reddit during the fourth quarter worth $303,082,000. Finally, GQG Partners LLC bought a new stake in Reddit during the fourth quarter worth $271,539,000.

Reddit Trading Down 4.9 %

RDDT stock opened at $113.01 on Friday. The stock has a 50-day moving average price of $116.82 and a two-hundred day moving average price of $143.67. Reddit has a 1 year low of $46.75 and a 1 year high of $230.41. The stock has a market cap of $20.44 billion, a PE ratio of -14.62, a price-to-earnings-growth ratio of 4.72 and a beta of 2.89.

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

Analyst Ratings Changes

A number of analysts have recently issued reports on RDDT shares. Citigroup boosted their price objective on Reddit from $150.00 to $158.00 and gave the company a “buy” rating in a research report on Friday. Raymond James cut their target price on shares of Reddit from $250.00 to $200.00 and set a “strong-buy” rating for the company in a research note on Wednesday, March 12th. Oppenheimer assumed coverage on shares of Reddit in a research report on Wednesday, April 16th. They set an “outperform” rating and a $125.00 price target on the stock. Roth Capital downgraded Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $150.00 target price (up previously from $140.00) on shares of Reddit in a research note on Friday. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $142.30.

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.