The stock of Reddit Inc. (NYSE: RDDT) has increased by 0.08 when compared to last closing price of 48.27.Despite this, the company has seen a gain of 8.71% in its stock price over the last five trading days. Market Watch reported 2024-05-06 that Reddit Inc. reports its first results since its initial public offering this week, with analysts eyeing revenue upside from the social-media platform.
Is It Worth Investing in Reddit Inc. (NYSE: RDDT) Right Now?
Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for RDDT is 27.72M and currently, short sellers hold a 10.38% of that float. On May 07, 2024, RDDT’s average trading volume was 7.47M shares.
RDDT’s Market Performance
The volatility ratio for the week is 6.68%, and the volatility levels for the past 30 days are at 6.81% for Reddit Inc. The simple moving average for the past 20 days is 10.82% for RDDT’s stock, with a 4.23% simple moving average for the past 200 days.
Analysts’ Opinion of RDDT
Many brokerage firms have already submitted their reports for RDDT stocks, with Deutsche Bank repeating the rating for RDDT by listing it as a “Buy.” The predicted price for RDDT in the upcoming period, according to Deutsche Bank is $50 based on the research report published on April 16, 2024 of the current year 2024.
BofA Securities, on the other hand, stated in their research note that they expect to see RDDT reach a price target of $46. The rating they have provided for RDDT stocks is “Neutral” according to the report published on April 16th, 2024.
ROTH MKM gave a rating of “Buy” to RDDT, setting the target price at $50 in the report published on April 15th of the current year.
RDDT Trading at 4.23% from the 50-Day Moving Average
After a stumble in the market that brought RDDT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -35.50% of loss for the given period.
Volatility was left at 6.81%, however, over the last 30 days, the volatility rate increased by 6.68%, as shares surge +6.35% for the moving average over the last 20 days.
During the last 5 trading sessions, RDDT rose by +7.69%, in comparison to the 20-day moving average, which settled at $43.74. In addition, Reddit Inc. saw -4.22% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RDDT starting from Sauerberg Robert A., who purchase 10,000 shares at the price of $34.00 back on Mar 25 ’24. After this action, Sauerberg Robert A. now owns 10,000 shares of Reddit Inc., valued at $340,000 using the latest closing price.
Habiger David C, the Director of Reddit Inc., purchase 3,000 shares at $34.00 during a trade that took place back on Mar 25 ’24, which means that Habiger David C is holding 24,906 shares at $102,000 based on the most recent closing price.
Stock Fundamentals for RDDT
Current profitability levels for the company are sitting at:
- -0.17 for the present operating margin
- 0.85 for the gross margin
The net margin for Reddit Inc. stands at -0.11. The total capital return value is set at -0.1. Equity return is now at value -6.23, with -5.68 for asset returns.
Based on Reddit Inc. (RDDT), the company’s capital structure generated 0.02 points at debt to capital in total, while cash flow to debt ratio is standing at -2.07.
Currently, EBITDA for the company is -126.46 million with net debt to EBITDA at 2.97. When we switch over and look at the enterprise to sales, we see a ratio of 8.99. The receivables turnover for the company is 3.28for trailing twelve months and the total asset turnover is 0.5. The liquidity ratio also appears to be rather interesting for investors as it stands at 11.08.
Conclusion
To wrap up, the performance of Reddit Inc. (RDDT) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
