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

Shares of Reddit, Inc. (NYSE:RDDT) gapped down before the market opened on Monday . The stock had previously closed at $128.21, but opened at $123.62. Reddit shares last traded at $123.07, with a volume of 787,941 shares trading hands.

Analyst Ratings Changes

A number of research firms have issued reports on RDDT. Citigroup restated a “neutral” rating on shares of Reddit in a report on Thursday, February 13th. Morgan Stanley increased their target price on shares of Reddit from $200.00 to $210.00 and gave the company an “overweight” rating in a research note on Thursday, February 13th. Guggenheim began coverage on shares of Reddit in a research note on Friday, December 20th. They issued a “buy” rating and a $210.00 target price for the company. Wells Fargo & Company increased their target price on shares of Reddit from $206.00 to $215.00 and gave the company an “overweight” rating in a research note on Thursday, February 13th. Finally, B. Riley increased their target price on shares of Reddit from $112.00 to $187.00 and gave the company a “buy” rating in a research note on Tuesday, January 14th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $168.76.

Reddit Stock Performance

The firm’s 50-day moving average is $177.06 and its two-hundred day moving average is $133.76. The stock has a market cap of $22.24 billion and a P/E ratio of -15.88.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. As a group, research analysts forecast that Reddit, Inc. will post 1.12 EPS for the current year.

Insider Activity

In related news, CTO Christopher Brian Slowe sold 11,000 shares of the company’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $169.85, for a total value of $1,868,350.00. Following the completion of the transaction, the chief technology officer now directly owns 324,837 shares of the company’s stock, valued at approximately $55,173,564.45. This represents a 3.28 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Andrew Vollero sold 48,122 shares of the company’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $162.80, for a total transaction of $7,834,261.60. Following the completion of the transaction, the chief financial officer now directly owns 599,295 shares of the company’s stock, valued at approximately $97,565,226. The trade was a 7.43 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 346,053 shares of company stock valued at $58,332,313 in the last quarter.

Hedge Funds Weigh In On Reddit

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RDDT. Entropy Technologies LP acquired a new position in Reddit in the 3rd quarter worth $231,000. Sumitomo Mitsui Trust Group Inc. boosted its stake in Reddit by 64.9% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 512,871 shares of the company’s stock worth $33,808,000 after purchasing an additional 201,776 shares during the period. Victory Capital Management Inc. lifted its position in Reddit by 903.8% during the 3rd quarter. Victory Capital Management Inc. now owns 504,116 shares of the company’s stock worth $33,231,000 after buying an additional 453,894 shares in the last quarter. Claro Advisors LLC bought a new stake in Reddit during the 3rd quarter worth about $1,879,000. Finally, Prospera Financial Services Inc bought a new stake in Reddit during the 3rd quarter worth about $248,000.

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.