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

Reddit, Inc. (NYSE:RDDT)’s share price gapped down prior to trading on Monday . The stock had previously closed at $128.21, but opened at $123.62. Reddit shares last traded at $123.07, with a volume of 787,941 shares.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on RDDT shares. Raymond James cut their target price on shares of Reddit from $250.00 to $200.00 and set a “strong-buy” rating for the company in a research note on Wednesday, March 12th. Wells Fargo & Company upped their target price on shares of Reddit from $206.00 to $215.00 and gave the stock an “overweight” rating in a report on Thursday, February 13th. Loop Capital reaffirmed a “buy” rating and issued a $210.00 target price on shares of Reddit in a report on Tuesday, March 11th. Morgan Stanley increased their price objective on shares of Reddit from $200.00 to $210.00 and gave the stock an “overweight” rating in a report on Thursday, February 13th. Finally, Robert W. Baird lifted their price target on shares of Reddit from $160.00 to $185.00 and gave the stock a “neutral” rating in a research report on Thursday, February 13th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $164.50.

Reddit Stock Down 12.4 %

The company has a 50 day moving average price of $174.74 and a 200-day moving average price of $134.59. The company has a market cap of $19.90 billion and a price-to-earnings ratio of -14.23.

Reddit (NYSE:RDDT) last released its earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, beating 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%. On average, analysts forecast that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Michelle Marie Reynolds sold 11,965 shares of Reddit stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $157.41, for a total value of $1,883,410.65. Following the completion of the sale, the chief accounting officer now owns 48,418 shares of the company’s stock, valued at approximately $7,621,477.38. This trade represents a 19.82 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Steve Ladd Huffman sold 124,408 shares of Reddit stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $127.36, for a total value of $15,844,602.88. Following the transaction, the chief executive officer now directly owns 583,515 shares of the company’s stock, valued at $74,316,470.40. The trade was a 17.57 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 470,461 shares of company stock worth $74,176,916 in the last ninety days.

Institutional Trading of Reddit

Large investors have recently modified their holdings of the business. FMR LLC lifted its position in Reddit by 302.8% in the 3rd 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 during the last quarter. Vanguard Group Inc. increased its position in Reddit by 184.2% during the 4th 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 during the period. Jennison Associates LLC bought a new position in Reddit in the fourth quarter worth about $494,861,000. Alliancebernstein L.P. raised its position in shares of Reddit by 1,011.1% in the 4th quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock worth $455,795,000 after acquiring an additional 2,537,768 shares in the last quarter. Finally, Point72 Asset Management L.P. lifted its position in Reddit by 3,172.0% during 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 buying an additional 2,225,895 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.