Reddit (NYSE:RDDT) Shares Gap Up After Strong Earnings

Reddit, Inc. (NYSE:RDDT) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $81.74, but opened at $104.90. Reddit shares last traded at $108.62, with a volume of 3,226,209 shares traded.

The company reported $0.16 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.23. The business had revenue of $348.40 million for the quarter, compared to analysts’ expectations of $313.61 million. Reddit’s revenue was up 67.9% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. JPMorgan Chase & Co. increased their target price on Reddit from $59.00 to $77.00 and gave the company a “neutral” rating in a report on Monday, October 7th. Roth Mkm increased their target price on shares of Reddit from $89.00 to $116.00 and gave the stock a “buy” rating in a report on Wednesday. JMP Securities upped their target price on Reddit from $84.00 to $118.00 and gave the company a “market outperform” rating in a report on Wednesday. B. Riley reissued a “buy” rating and set a $112.00 price objective (up from $87.00) on shares of Reddit in a research report on Wednesday. Finally, Raymond James lifted their target price on shares of Reddit from $70.00 to $80.00 and gave the company a “strong-buy” rating in a research note on Thursday, October 10th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $89.72.

Insider Activity

In related news, Director Mary Porter Gale sold 15,000 shares of the stock in a transaction that occurred on Friday, August 9th. The shares were sold at an average price of $52.73, for a total transaction of $790,950.00. Following the transaction, the director now owns 101,459 shares in the company, valued at $5,349,933.07. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, Director Mary Porter Gale sold 15,000 shares of the company’s stock in a transaction dated Friday, August 9th. The shares were sold at an average price of $52.73, for a total transaction of $790,950.00. Following the completion of the sale, the director now owns 101,459 shares of the company’s stock, valued at $5,349,933.07. This represents a 0.00 % decrease in their position. The transaction 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 business’s stock in a transaction that occurred on Tuesday, August 20th. The shares were sold at an average price of $53.98, for a total transaction of $755,720.00. Following the sale, the chief executive officer now owns 672,352 shares of the company’s stock, valued at $36,293,560.96. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 390,327 shares of company stock valued at $23,503,224 over the last ninety days.

Institutional Trading of Reddit

Hedge funds have recently bought and sold shares of the stock. Commonwealth Equity Services LLC purchased a new stake in Reddit in the 1st quarter worth approximately $1,111,000. BNP Paribas Financial Markets purchased a new stake in Reddit in the 1st quarter worth $37,000. SG Americas Securities LLC bought a new stake in Reddit during the first quarter valued at about $265,000. ANTIPODES PARTNERS Ltd purchased a new position in shares of Reddit in the first quarter valued at about $63,000. Finally, Vanguard Group Inc. bought a new position in shares of Reddit in the first quarter worth about $82,167,000.

Reddit Stock Performance

The firm has a 50 day moving average of $69.05 and a 200-day moving average of $61.61.

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.