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

Reddit Inc. (NYSE:RDDT) shares gapped up before the market opened on Friday . The stock had previously closed at $158.12, but opened at $175.78. Reddit shares last traded at $181.5750, with a volume of 5,109,321 shares traded.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Index inclusion should create forced demand. Mutual funds and exchange-traded funds that track the S&P 500 will generally need to purchase RDDT shares, potentially increasing institutional ownership, liquidity and near-term demand. Reddit stock soars after S&P 500 inclusion announcement
• Positive Sentiment: The announcement represents an important validation for Reddit. The company’s addition less than two years after its public listing may improve its visibility with institutional investors and broaden its shareholder base. Reddit shares jump on inclusion in S&P 500
• Positive Sentiment: Advertising momentum remains a supporting factor. Recent coverage highlights Reddit’s expanding advertiser base, stronger competition with Meta and Snap, and its AI-powered Reddit Max advertising tools. Marketers are increasingly viewing Reddit as valuable for influencing consumer choices and training or guiding large language models. Reddit strengthens ad game against Meta and Snap

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Oppenheimer lowered their target price on Reddit from $225.00 to $200.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. Loop Capital reissued a “buy” rating and set a $260.00 price target on shares of Reddit in a research report on Thursday, June 4th. Piper Sandler restated an “overweight” rating and issued a $195.00 price target (down from $215.00) on shares of Reddit in a report on Friday, July 31st. Jefferies Financial Group set a $250.00 price objective on shares of Reddit in a research report on Friday, July 10th. Finally, UBS Group reiterated a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $220.90.

Reddit Price Performance

The firm has a market capitalization of $34.40 billion, a PE ratio of 41.54, a price-to-earnings-growth ratio of 0.52 and a beta of 2.03. The stock has a 50-day moving average price of $175.21 and a 200-day moving average price of $159.70.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. The business had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The company’s revenue was up 61.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.45 earnings per share. As a group, equities research analysts predict that Reddit Inc. will post 5.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares of the company’s stock, valued at $3,012,000. This represents a 5.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $159.78, for a total value of $2,876,040.00. Following the transaction, the chief executive officer owned 373,814 shares of the company’s stock, valued at approximately $59,728,000.92. This trade represents a 4.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 151,141 shares of company stock worth $25,635,785 in the last three months. 28.48% of the stock is owned by insiders.

Institutional Trading of Reddit

Several institutional investors have recently added to or reduced their stakes in RDDT. Sunbelt Securities Inc. grew its stake in Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after acquiring an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. bought a new position in Reddit in the 2nd quarter worth about $35,000. Summit Securities Group LLC bought a new position in Reddit in the 4th quarter worth approximately $46,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in shares of Reddit by 214.3% during the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 220 shares of the company’s stock valued at $51,000 after purchasing an additional 150 shares during the period.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.