B. Riley Securities has recently initiated Reddit Inc (RDDT) stock to Buy rating, as announced on September 20, 2024, according to Finviz. Earlier, on August 1, 2024, Loop Capital had raised the stock from a Hold to Buy, setting a price target of $75. ROTH MKM also reiterated Buy rating with a price target of $67. Additionally, Loop Capital reduced Hold rating on July 16, 2024, with a target price of $75. Needham analysts, in their report published on May 8, 2024, also reiterated Buy rating and set a price target of $63 for Reddit Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Reddit Inc (RDDT) Stock Trading Recap
On Thursday, Reddit Inc (RDDT) stock saw a decline, ending the day at $66.52 which represents a decrease of $-1.36 or -2.00% from the prior close of $67.88. The stock opened at $69 and touched a low of $65.71 during the day, reaching a high of $69. The volume of shares traded was 4.31 million exceeding the average volume of 3.78 million.
RDDT Stock Performance and Moving Averages
In recent trading, Reddit Inc (RDDT) stock price has shown some volatility, fluctuating 3.04% over the last five trades and 12.75% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 15.19%, and it has gained 4.62% in the previous three months. Currently, RDDT is trading at 9.66%, 11.99%, and 16.77% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, RDDT, a Communication Services sector stock, is trading -14.81% below its 52-week high but remains 78.10% above its 52-week low. The Average True Range (ATR) (14 days) of 3.15 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Reddit Inc’s Profitability and Valuation Ratios
Reddit Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -64.89% and a profit margin of -58.49%, with a gross margin of 15.19%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Reddit Inc’s market capitalization stands at $11.03 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 11.24, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.82, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 55.18% of Reddit Inc (RDDT)’s shares, while financial institutions hold 17.93%.
Notable insider trades include Slowe Christopher Brian, Chief Technology Officer at Reddit Inc (RDDT), who sold 11000 shares on Sep 23 ’24, at $65.56 each, totaling $0.72 million. On Sep 23 ’24, Slowe Christopher Brian, Chief Technology Officer, sold 5000 shares for $65.6 each, amounting to $0.33 million. Additionally, on Sep 19 ’24, Wong Jennifer L. sold 50000 shares at $65.01 each, generating $3.25 million.
