Reddit (NYSE:RDDT) Trading Down 10.3% – What’s Next?

Reddit, Inc. (NYSE:RDDT) fell 10.3% during mid-day trading on Tuesday . The stock traded as low as $112.91 and last traded at $112.68. 1,957,038 shares were traded during mid-day trading, a decline of 65% from the average session volume of 5,659,296 shares. The stock had previously closed at $125.56.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on RDDT. JMP Securities upped their target price on shares of Reddit from $190.00 to $200.00 and gave the stock a “market outperform” rating in a research note on Thursday, February 13th. Morgan Stanley upped their target price on shares of Reddit from $200.00 to $210.00 and gave the stock an “overweight” rating in a research note on Thursday, February 13th. Citigroup reiterated a “neutral” rating on shares of Reddit in a research note on Thursday, February 13th. JPMorgan Chase & Co. upped their target price on shares of Reddit from $142.00 to $185.00 and gave the stock a “neutral” rating in a research note on Thursday, February 13th. Finally, B. Riley upped their target price on shares of Reddit from $112.00 to $187.00 and gave the stock a “buy” rating in a research note on Tuesday, January 14th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $164.50.

Reddit Stock Down 10.6 %

The stock has a market cap of $20.30 billion and a P/E ratio of -14.48. The firm’s fifty day moving average price is $175.99 and its 200-day moving average price is $134.24.

Reddit (NYSE:RDDT) last issued its earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) 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%. Sell-side analysts predict that Reddit, Inc. will post 1.12 earnings per share for the current year.

Insider Transactions at Reddit

In related news, CFO Andrew Vollero sold 48,122 shares of the firm’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $162.80, for a total value of $7,834,261.60. Following the completion of the sale, the chief financial officer now owns 599,295 shares of the company’s stock, valued at $97,565,226. This trade represents a 7.43 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director David C. Habiger purchased 774 shares of the company’s stock in a transaction that occurred on Wednesday, March 12th. The stock was acquired at an average cost of $130.36 per share, with a total value of $100,898.64. Following the purchase, the director now directly owns 30,808 shares of the company’s stock, valued at $4,016,130.88. This trade represents a 2.58 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 346,053 shares of company stock worth $58,332,313.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jennison Associates LLC purchased a new stake in Reddit in the fourth quarter worth $494,861,000. Renaissance Capital LLC lifted its position in Reddit by 14.2% during the fourth quarter. Renaissance Capital LLC now owns 31,236 shares of the company’s stock valued at $5,105,000 after buying an additional 3,892 shares during the period. Charles Schwab Investment Management Inc. lifted its position in Reddit by 27.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 642,456 shares of the company’s stock valued at $105,003,000 after buying an additional 139,135 shares during the period. Assetmark Inc. lifted its position in Reddit by 1,537,566.7% during the fourth quarter. Assetmark Inc. now owns 46,130 shares of the company’s stock valued at $7,539,000 after buying an additional 46,127 shares during the period. Finally, Wellington Management Group LLP lifted its position in Reddit by 3,640.5% during the third quarter. Wellington Management Group LLP now owns 255,325 shares of the company’s stock valued at $16,831,000 after buying an additional 248,499 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.