Jefferies has recently initiated Reddit Inc (RDDT) stock to Buy rating, as announced on October 9, 2024, according to Finviz. Earlier, on September 20, 2024, B. Riley Securities had initiated the stock to Buy, setting a price target of $75. Loop Capital also raised Buy rating with a price target of $75. Additionally, ROTH MKM reiterated Buy rating on July 26, 2024, with a target price of $67. Loop Capital analysts, in their report published on July 16, 2024, also reduced Hold rating and set a price target of $75 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 Friday, Reddit Inc (RDDT) stock saw a modest uptick, ending the day at $80.9 which represents a slight increase of $4.61 or 6.04% from the prior close of $76.29. The stock opened at $76.61 and touched a low of $76.42 during the day, reaching a high of $81.36. The volume of shares traded was 5.42 million exceeding the average volume of 4.07 million.
RDDT Stock Performance and Moving Averages
In recent trading, Reddit Inc (RDDT) stock price has shown some volatility, fluctuating 10.44% over the last five trades and 25.31% 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 97.90%, and it has gained 18.74% in the previous three months. Currently, RDDT is trading at 14.52%, 28.38%, and 37.98% 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 2.74% below its 52-week high but remains 116.60% above its 52-week low. The Average True Range (ATR) (14 days) of 3.28 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 97.90%. 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 $13.42 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 2519.46. Additionally, the Price-to-Sales Ratio is 13.67, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 7.08, 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 18.06%.
Notable insider trades include Wong Jennifer L., Chief Operating Officer at Reddit Inc (RDDT), who sold 33334 shares on Oct 16 ’24, at $76.27 each, totaling $2.54 million. On Oct 15 ’24, Huffman Steve Ladd, CEO & President, sold 110408 shares for $75.44 each, amounting to $8.33 million. Additionally, on Oct 15 ’24, Huffman Steve Ladd sold 14000 shares at $75.43 each, generating $1.06 million.
