Reddit (NYSE:RDDT) Shares Gap Down – Time to Sell?

Reddit, Inc. (NYSE:RDDT)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $216.47, but opened at $203.92. Reddit shares last traded at $212.04, with a volume of 7,259,761 shares.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Guggenheim started coverage on Reddit in a research note on Friday, December 20th. They issued a “buy” rating and a $210.00 price objective for the company. Raymond James increased their price target on shares of Reddit from $200.00 to $250.00 and gave the company a “strong-buy” rating in a report on Monday, February 10th. Roth Mkm downgraded shares of Reddit from a “buy” rating to a “neutral” rating and increased their price target for the company from $116.00 to $195.00 in a report on Wednesday, January 22nd. Citigroup increased their price target on shares of Reddit from $200.00 to $220.00 and gave the company a “buy” rating in a report on Thursday. Finally, Needham & Company LLC increased their price target on shares of Reddit from $190.00 to $220.00 and gave the company a “buy” rating in a report on Thursday. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $175.45.

Reddit Stock Down 4.2 %

The business’s 50 day moving average is $182.33 and its 200 day moving average is $118.85.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.12. Reddit had a negative return on equity of 40.54% and a negative net margin of 47.83%. On average, analysts forecast that Reddit, Inc. will post -3.45 EPS for the current fiscal year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the company’s stock in a transaction on Friday, November 29th. The stock was sold at an average price of $141.79, for a total value of $1,985,060.00. Following the transaction, the chief executive officer now directly owns 634,971 shares of the company’s stock, valued at $90,032,538.09. This represents a 2.16 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Jennifer L. Wong sold 33,333 shares of the company’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $128.13, for a total value of $4,270,957.29. Following the completion of the transaction, the chief operating officer now directly owns 1,542,457 shares in the company, valued at approximately $197,635,015.41. The trade was a 2.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 245,357 shares of company stock valued at $39,357,388.

Hedge Funds Weigh In On Reddit

Several hedge funds have recently made changes to their positions in RDDT. FMR LLC increased its position in shares of Reddit by 302.8% in the 3rd quarter. FMR LLC now owns 12,157,591 shares of the company’s stock valued at $801,428,000 after acquiring an additional 9,139,196 shares during the period. Vanguard Group Inc. boosted its holdings in Reddit by 184.2% in the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock valued at $1,500,606,000 after purchasing an additional 5,950,909 shares during the last quarter. Jennison Associates LLC purchased a new stake in Reddit in the fourth quarter valued at $494,861,000. Alliancebernstein L.P. boosted its stake in shares of Reddit by 1,011.1% during the 4th quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock worth $455,795,000 after acquiring an additional 2,537,768 shares in the last quarter. Finally, Point72 Asset Management L.P. lifted its stake in Reddit by 3,172.0% in the 3rd quarter. Point72 Asset Management L.P. now owns 2,296,068 shares of the company’s stock valued at $151,357,000 after buying an additional 2,225,895 shares in the last quarter.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.