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

Shares of Reddit, Inc. (NYSE:RDDT) 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 trading hands.

Wall Street Analyst Weigh In

RDDT has been the subject of a number of recent research reports. Piper Sandler reiterated an “overweight” rating and issued a $210.00 price objective (up previously from $197.00) on shares of Reddit in a report on Thursday. Wells Fargo & Company raised their price target on shares of Reddit from $206.00 to $215.00 and gave the stock an “overweight” rating in a report on Thursday. Roth Mkm cut shares of Reddit from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $116.00 to $195.00 in a research report on Wednesday, January 22nd. Morgan Stanley raised their price target on shares of Reddit from $200.00 to $210.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, JPMorgan Chase & Co. raised their price target on shares of Reddit from $142.00 to $185.00 and gave the company a “neutral” rating in a research report on Thursday. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Reddit has an average rating of “Moderate Buy” and a consensus target price of $175.45.

Reddit Stock Performance

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

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

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 33,333 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $128.13, for a total transaction of $4,270,957.29. Following the sale, the chief operating officer now owns 1,542,457 shares of the company’s stock, valued at approximately $197,635,015.41. The trade was a 2.12 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Andrew Vollero sold 19,838 shares of the business’s stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $143.22, for a total transaction of $2,841,198.36. Following the sale, the chief financial officer now directly owns 703,615 shares in the company, valued at approximately $100,771,740.30. This represents a 2.74 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 245,357 shares of company stock worth $39,357,388 in the last ninety days.

Institutional Trading of Reddit

A number of institutional investors have recently added to or reduced their stakes in RDDT. FMR LLC boosted its holdings in Reddit by 302.8% during the third quarter. FMR LLC now owns 12,157,591 shares of the company’s stock worth $801,428,000 after buying an additional 9,139,196 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of 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 in the last quarter. Jennison Associates LLC purchased a new stake in shares of Reddit in the fourth quarter valued at about $494,861,000. Alliancebernstein L.P. lifted its holdings in shares of Reddit by 1,011.1% in the fourth quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock valued at $455,795,000 after purchasing an additional 2,537,768 shares in the last quarter. Finally, Point72 Asset Management L.P. lifted its holdings in shares of Reddit by 3,172.0% in the third quarter. Point72 Asset Management L.P. now owns 2,296,068 shares of the company’s stock valued at $151,357,000 after purchasing 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.