Reddit (NYSE:RDDT) Stock Price Down 12.9% – Time to Sell?

Reddit, Inc. (NYSE:RDDT) shares dropped 12.9% during mid-day trading on Monday . The company traded as low as $119.23 and last traded at $116.72. Approximately 2,788,790 shares traded hands during mid-day trading, a decline of 49% from the average daily volume of 5,473,171 shares. The stock had previously closed at $133.98.

Analysts Set New Price Targets

A number of analysts have commented on the company. 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. Bank of America lifted their target price on shares of Reddit from $180.00 to $190.00 and gave the company a “neutral” rating in a research note on Thursday, February 13th. Raymond James lifted their price target on Reddit from $200.00 to $250.00 and gave the company a “strong-buy” rating in a report on Monday, February 10th. Loop Capital increased their price objective on shares of Reddit from $180.00 to $210.00 and gave the stock a “buy” rating in a report on Thursday, February 13th. Finally, Guggenheim assumed 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. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $175.95.

Reddit Stock Performance

The business has a fifty day moving average price of $181.61 and a 200 day moving average price of $131.51. The company has a market cap of $20.01 billion and a price-to-earnings ratio of -14.33.

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

Insider Buying and Selling at Reddit

In other news, CAO Michelle Marie Reynolds sold 11,965 shares of Reddit stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $157.41, for a total transaction of $1,883,410.65. Following the sale, the chief accounting officer now owns 48,418 shares of the company’s stock, valued at approximately $7,621,477.38. The trade was a 19.82 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Benjamin Seong Lee sold 92,299 shares of the stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total value of $14,523,247.65. Following the completion of the transaction, the insider now owns 115,001 shares of the company’s stock, valued at approximately $18,095,407.35. This trade represents a 44.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 393,386 shares of company stock valued at $66,673,388 over the last three months.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Concurrent Investment Advisors LLC bought a new stake in shares of Reddit during the third quarter valued at approximately $372,000. SpiderRock Advisors LLC bought a new stake in Reddit in the 3rd quarter worth about $3,485,000. Proficio Capital Partners LLC purchased a new position in Reddit in the 3rd quarter worth about $382,000. Long Walk Management LP lifted its stake in Reddit by 28.3% during the 3rd quarter. Long Walk Management LP now owns 715,000 shares of the company’s stock valued at $47,133,000 after acquiring an additional 157,500 shares during the period. Finally, Chartwell Investment Partners LLC lifted its stake in Reddit by 80.8% during the 3rd quarter. Chartwell Investment Partners LLC now owns 22,544 shares of the company’s stock valued at $1,486,000 after acquiring an additional 10,072 shares during the period.

About Reddit

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.