Reddit Inc (NYSE: RDDT) has experienced a decline in its stock price by -3.83 compared to its previous closing price of 173.54. However, the company has seen a fall of -2.23% in its stock price over the last five trading days. invezz.com reported 2024-12-28 that Reddit (RDDT) had a stellar year in 2024, with s staggering 250% surge in its stock price from its first-day close following its debut listing in March. The trajectory of the stock has caused the 19-year old social media giant to become a darling of Wall Street.
Is It Worth Investing in Reddit Inc (NYSE: RDDT) Right Now?
Analysts have differing opinions on the stock, with 8 analysts rating it as a “buy,” 5 as “overweight,” 6 as “hold,” and 0 as “sell.”
The public float for RDDT is 103.41M, and currently, short sellers hold a 15.65% ratio of that floaft. The average trading volume of RDDT on December 30, 2024 was 6.64M shares.
RDDT’s Market Performance
RDDT’s stock has seen a -2.23% decrease for the week, with a 19.18% rise in the past month and a 153.19% gain in the past quarter. The volatility ratio for the week is 5.81%, and the volatility levels for the past 30 days are at 6.98% for Reddit Inc The simple moving average for the past 20 days is 1.40% for RDDT’s stock, with a 113.19% simple moving average for the past 200 days.
Analysts’ Opinion of RDDT
Many brokerage firms have already submitted their reports for RDDT stocks, with Guggenheim repeating the rating for RDDT by listing it as a “Buy.” The predicted price for RDDT in the upcoming period, according to Guggenheim is $210 based on the research report published on December 20, 2024 of the current year 2024.
Wells Fargo, on the other hand, stated in their research note that they expect to see RDDT reach a price target of $206. The rating they have provided for RDDT stocks is “Overweight” according to the report published on December 11th, 2024.
Morgan Stanley gave a rating of “Overweight” to RDDT, setting the target price at $200 in the report published on December 09th of the current year.
RDDT Trading at 22.60% 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 -8.40% of loss for the given period.
Volatility was left at 6.98%, however, over the last 30 days, the volatility rate increased by 5.81%, as shares surge +17.89% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +117.41% upper at present.
During the last 5 trading sessions, RDDT fell by -2.84%, in comparison to the 20-day moving average, which settled at $164.54. In addition, Reddit Inc saw 230.89% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RDDT starting from Slowe Christopher Brian, who sale 11,000 shares at the price of $169.85 back on Dec 23 ’24. After this action, Slowe Christopher Brian now owns 324,837 shares of Reddit Inc, valued at $1,868,375 using the latest closing price.
Slowe Christopher Brian, the Chief Technology Officer of Reddit Inc, sale 5,000 shares at $169.82 during a trade that took place back on Dec 23 ’24, which means that Slowe Christopher Brian is holding 20,068 shares at $849,120 based on the most recent closing price.
Stock Fundamentals for RDDT
Current profitability levels for the company are sitting at:
- -0.54 for the present operating margin
- 0.89 for the gross margin
The net margin for Reddit Inc stands at -0.48. The total capital return value is set at -0.31. Equity return is now at value -31.80, with -28.80 for asset returns.
Based on Reddit Inc (RDDT), the company’s capital structure generated 0.0 points at debt to capital in total, while cash flow to debt ratio is standing at 21.24.
Currently, EBITDA for the company is -126.46 million with net debt to EBITDA at 0.82. When we switch over and look at the enterprise to sales, we see a ratio of 25.64. The receivables turnover for the company is 3.82for trailing twelve months and the total asset turnover is 0.52. The liquidity ratio also appears to be rather interesting for investors as it stands at 11.96.
Conclusion
In a nutshell, Reddit Inc (RDDT) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
