Reddit (NYSE:RDDT) Hits New 12-Month High – Still a Buy?

Reddit, Inc. (NYSE:RDDT)’s stock price hit a new 52-week high during trading on Tuesday . The company traded as high as $214.41 and last traded at $215.34, with a volume of 1096784 shares. The stock had previously closed at $202.31.

Wall Street Analysts Forecast Growth

Several brokerages have commented on RDDT. Guggenheim assumed coverage on Reddit in a report on Friday, December 20th. They set a “buy” rating and a $210.00 target price on the stock. Roth Capital downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, January 22nd. Jefferies Financial Group increased their price target on Reddit from $120.00 to $175.00 and gave the stock a “buy” rating in a report on Monday, November 25th. Roth Mkm downgraded Reddit from a “buy” rating to a “neutral” rating and boosted their price objective for the company from $116.00 to $195.00 in a research note on Wednesday, January 22nd. Finally, Morgan Stanley raised Reddit from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $70.00 to $200.00 in a research note on Monday, December 9th. One analyst has rated the stock with a sell rating, seven have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Reddit has a consensus rating of “Moderate Buy” and a consensus target price of $159.70.

Reddit Price Performance

The stock’s 50-day simple moving average is $173.19 and its 200-day simple moving average is $111.88.

Insiders Place Their Bets

In other Reddit news, insider Benjamin Seong Lee sold 18,519 shares of the company’s stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $146.06, for a total transaction of $2,704,885.14. Following the sale, the insider now directly owns 138,401 shares of the company’s stock, valued at $20,214,850.06. This represents a 11.80 % decrease in their ownership of the stock. 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 Reddit stock in a transaction on Friday, November 15th. The shares were sold at an average price of $125.98, for a total value of $1,763,720.00. Following the completion of the transaction, the chief executive officer now owns 651,775 shares of the company’s stock, valued at approximately $82,110,614.50. This trade represents a 2.10 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 259,357 shares of company stock valued at $41,121,108.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Plato Investment Management Ltd purchased a new position in Reddit in the 4th quarter worth $27,000. Ridgewood Investments LLC lifted its position in Reddit by 100.0% during the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after buying an additional 100 shares during the period. Farmers & Merchants Investments Inc. bought a new position in shares of Reddit in the 4th quarter worth about $33,000. Bogart Wealth LLC purchased a new position in Reddit during the 4th quarter valued at about $33,000. Finally, Spire Wealth Management bought a new stake in Reddit during the fourth quarter worth about $35,000.

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.