Reddit (NYSE:RDDT) Trading Down 6.2% – What’s Next?

Reddit, Inc. (NYSE:RDDT)’s share price fell 6.2% on Wednesday . The company traded as low as $117.87 and last traded at $117.68. 1,256,043 shares traded hands during trading, a decline of 77% from the average session volume of 5,440,697 shares. The stock had previously closed at $125.43.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on RDDT shares. Loop Capital reiterated a “buy” rating and issued a $210.00 target price on shares of Reddit in a research note on Tuesday, March 11th. Morgan Stanley lifted their target price on Reddit from $200.00 to $210.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Roth Mkm downgraded shares of Reddit from a “buy” rating to a “neutral” rating and increased their price target for the stock from $116.00 to $195.00 in a report on Wednesday, January 22nd. Robert W. Baird boosted their price objective on shares of Reddit from $160.00 to $185.00 and gave the company a “neutral” rating in a research note on Thursday, February 13th. Finally, Guggenheim lowered their target price on shares of Reddit from $210.00 to $170.00 and set a “buy” rating on the stock in a research note on Thursday, March 20th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, Reddit presently has a consensus rating of “Hold” and a consensus target price of $162.68.

Reddit Stock Down 5.0 %

The company’s fifty day moving average price is $169.60 and its 200-day moving average price is $136.66. The stock has a market capitalization of $21.56 billion and a PE ratio of -15.47.

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

Insider Transactions at Reddit

In related news, COO Jennifer L. Wong sold 33,334 shares of the stock in a transaction that occurred on Thursday, January 16th. The stock was sold at an average price of $173.93, for a total value of $5,797,782.62. Following the transaction, the chief operating officer now owns 1,504,297 shares of the company’s stock, valued at $261,642,377.21. This represents a 2.17 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction on Friday, January 31st. The stock was sold at an average price of $201.96, for a total value of $2,827,440.00. Following the transaction, the chief executive officer now owns 614,394 shares in the company, valued at $124,083,012.24. The trade was a 2.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 492,794 shares of company stock valued at $76,482,524.

Hedge Funds Weigh In On Reddit

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Plato Investment Management Ltd bought a new position in Reddit during the 4th quarter worth about $27,000. EverSource Wealth Advisors LLC bought a new position in shares of Reddit during the fourth quarter valued at approximately $28,000. Ridgewood Investments LLC increased its holdings in Reddit by 100.0% during the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after buying an additional 100 shares during the period. Farmers & Merchants Investments Inc. bought a new position in Reddit in the fourth quarter worth approximately $33,000. Finally, Bogart Wealth LLC purchased a new position in Reddit in the fourth quarter valued at about $33,000.

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.