Reddit Target of Unusually High Options Trading (NYSE:RDDT)

Reddit, Inc. (NYSE:RDDT) was the target of some unusual options trading on Friday. Traders acquired 74,337 call options on the stock. This is an increase of 48% compared to the average volume of 50,345 call options.

Reddit Stock Performance

RDDT stock opened at $113.01 on Friday. The company has a market cap of $20.44 billion, a price-to-earnings ratio of -14.62, a P/E/G ratio of 4.72 and a beta of 2.89. The business’s 50-day moving average is $116.82 and its two-hundred day moving average is $143.22. Reddit has a fifty-two week low of $46.24 and a fifty-two week high of $230.41.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, topping 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 company had revenue of $392.36 million for the quarter, compared to the consensus estimate of $370.55 million. During the same quarter last year, the firm posted ($8.19) earnings per share. The firm’s revenue was up 61.5% compared to the same quarter last year. Equities analysts predict that Reddit will post 1.12 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on RDDT shares. B. Riley restated a “buy” rating and issued a $220.00 price objective (down previously from $222.00) on shares of Reddit in a report on Friday. Truist Financial initiated coverage on Reddit in a research report on Monday, April 7th. They set a “buy” rating and a $150.00 price objective for the company. Redburn Atlantic assumed coverage on Reddit in a report on Monday, March 17th. They issued a “sell” rating and a $75.00 target price on the stock. JPMorgan Chase & Co. reduced their price target on Reddit from $185.00 to $110.00 and set a “neutral” rating for the company in a report on Tuesday, April 8th. Finally, Needham & Company LLC upped their price target on shares of Reddit from $135.00 to $145.00 and gave the stock a “buy” rating in a research note on Friday. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and a consensus price target of $142.30.

Insider Buying and Selling at Reddit

In related news, CEO Steve Ladd Huffman sold 124,408 shares of Reddit stock in a transaction that occurred on Friday, March 14th. The stock was sold at an average price of $127.36, for a total transaction of $15,844,602.88. Following the sale, the chief executive officer now directly owns 583,515 shares in the company, valued at $74,316,470.40. The trade was a 17.57 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Michelle Marie Reynolds sold 11,965 shares of the company’s stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $157.41, for a total value of $1,883,410.65. Following the completion of the sale, the chief accounting officer now directly owns 48,418 shares in the company, valued at approximately $7,621,477.38. The trade was a 19.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 711,270 shares of company stock valued at $94,239,985.

Institutional Investors Weigh In On Reddit

A number of hedge funds have recently modified their holdings of RDDT. Plato Investment Management Ltd purchased a new position in Reddit during the fourth quarter valued at $27,000. CWM LLC lifted its position in shares of Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company’s stock valued at $27,000 after buying an additional 128 shares in the last quarter. EverSource Wealth Advisors LLC bought a new position in shares of Reddit during the 4th quarter valued at approximately $28,000. Ridgewood Investments LLC increased its holdings in Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock worth $33,000 after acquiring an additional 100 shares in the last quarter. Finally, Farmers & Merchants Investments Inc. bought a new stake in Reddit during the 4th quarter worth approximately $33,000.

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.