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 Tuesday, Reddit Inc (RDDT) stock saw a modest uptick, ending the day at $122.57 which represents a slight increase of $13.54 or 12.42% from the prior close of $109.03. The stock opened at $110.5 and touched a low of $110.27 during the day, reaching a high of $122.68. The volume of shares traded was 10.57 million exceeding the average volume of 5.40 million.
RDDT Stock Performance and Moving Averages
In recent trading, Reddit Inc (RDDT) stock price has shown some volatility, fluctuating 49.95% over the last five trades and 74.01% 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 148.12%, and it has gained 141.80% in the previous three months. Currently, RDDT is trading at 41.42%, 69.30%, and 99.81% 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 -0.83% below its 52-week high but remains 228.17% above its 52-week low. The Average True Range (ATR) (14 days) of 6.41 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 -54.39% and a profit margin of -47.83%, with a gross margin of 148.12%. 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 $21.69 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 206. Additionally, the Price-to-Sales Ratio is 19.33, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 10.79, 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 51.15% of Reddit Inc (RDDT)’s shares, while financial institutions hold 20.29%.
Notable insider trades include Gale Mary Porter, Director at Reddit Inc (RDDT), who sold 5000 shares on Nov 01 ’24, at $114.4 each, totaling $0.57 million. On Nov 01 ’24, Huffman Steve Ladd, CEO & President, sold 14000 shares for $113.13 each, amounting to $1.58 million. Additionally, on Nov 01 ’24, Seibel Michael sold 50000 shares at $111.27 each, generating $5.56 million.
