Reddit (NYSE:RDDT) Shares Down 4.7% – Here’s Why

Reddit, Inc. (NYSE:RDDT)’s share price dropped 4.7% during trading on Friday . The stock traded as low as $195.73 and last traded at $195.36. Approximately 2,756,588 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 5,494,323 shares. The stock had previously closed at $204.95.

Analysts Set New Price Targets

RDDT has been the subject of a number of research analyst reports. Jefferies Financial Group raised their price objective on Reddit from $120.00 to $175.00 and gave the stock a “buy” rating in a research report on Monday, November 25th. Wells Fargo & Company increased their target price on shares of Reddit from $206.00 to $215.00 and gave the stock an “overweight” rating in a research note on Thursday. B. Riley boosted their price target 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. Piper Sandler reaffirmed an “overweight” rating and set a $210.00 price objective (up previously from $197.00) on shares of Reddit in a research report on Thursday. Finally, JPMorgan Chase & Co. lifted their target price on shares of Reddit from $142.00 to $185.00 and gave the company a “neutral” rating in a report on Thursday. One research analyst has rated the stock with a sell rating, eight have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $175.45.

Reddit Stock Down 4.2 %

The stock has a 50 day simple moving average of $182.33 and a two-hundred day simple moving average of $119.28.

Reddit (NYSE:RDDT) last issued its earnings results 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 return on equity of 40.54% and a negative net margin of 47.83%. Equities research analysts predict that Reddit, Inc. will post -3.45 EPS for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $141.79, for a total transaction of $1,985,060.00. Following the transaction, the chief executive officer now owns 634,971 shares in the company, valued at $90,032,538.09. This trade represents a 2.16 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Christopher Brian Slowe sold 5,000 shares of Reddit stock in a transaction that occurred on Wednesday, January 22nd. The stock was sold at an average price of $184.15, for a total value of $920,750.00. Following the transaction, the chief technology officer now directly owns 35,252 shares in the company, valued at approximately $6,491,655.80. This trade represents a 12.42 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 245,357 shares of company stock worth $39,357,388.

Hedge Funds Weigh In On Reddit

A number of hedge funds have recently modified their holdings of RDDT. Plato Investment Management Ltd purchased a new position in shares of Reddit during the fourth quarter worth about $27,000. EverSource Wealth Advisors LLC acquired a new stake in Reddit during the 4th quarter worth approximately $28,000. Ridgewood Investments LLC grew its stake in shares of Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after purchasing an additional 100 shares during the last quarter. Farmers & Merchants Investments Inc. acquired a new position in shares of Reddit in the fourth quarter valued at approximately $33,000. Finally, Bogart Wealth LLC acquired a new position in shares of Reddit in the fourth quarter valued at approximately $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.