Reddit (NYSE:RDDT) Shares Gap Down Following Analyst Downgrade

Reddit, Inc. (NYSE:RDDT) gapped down prior to trading on Thursday after Piper Sandler lowered their price target on the stock from $220.00 to $140.00. The stock had previously closed at $110.86, but opened at $103.98. Piper Sandler currently has an overweight rating on the stock. Reddit shares last traded at $101.16, with a volume of 2,653,374 shares changing hands.

Other equities analysts have also recently issued research reports about the stock. Citigroup reissued an “outperform” rating on shares of Reddit in a research report on Friday, March 28th. Roth Capital lowered Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Morgan Stanley boosted 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. Raymond James cut their price target on Reddit from $250.00 to $200.00 and set a “strong-buy” rating on the stock in a research report on Wednesday, March 12th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $220.00 price objective on shares of Reddit in a report on Friday, March 21st. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $151.73.

Insiders Place Their Bets

In other Reddit news, CEO Steve Ladd Huffman sold 14,000 shares of the 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 sale, the chief executive officer now directly owns 614,394 shares of the company’s stock, valued at $124,083,012.24. This trade represents a 2.23 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CAO Michelle Marie Reynolds sold 11,965 shares of Reddit stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $157.41, for a total value of $1,883,410.65. Following the sale, the chief accounting officer now directly owns 48,418 shares in the company, valued at approximately $7,621,477.38. This trade represents a 19.82 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 603,794 shares of company stock worth $89,386,704 in the last quarter.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently bought and sold shares of RDDT. Plato Investment Management Ltd acquired a new position in Reddit during the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC bought a new position in shares of Reddit in the 4th quarter valued at approximately $28,000. Ridgewood Investments LLC lifted its position in Reddit by 100.0% during the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock worth $33,000 after acquiring an additional 100 shares during the last quarter. Farmers & Merchants Investments Inc. acquired a new position in shares of Reddit during the 4th quarter worth about $33,000. Finally, Bogart Wealth LLC acquired a new stake in Reddit in the 4th quarter valued at approximately $33,000.

Reddit Price Performance

The business has a fifty day moving average price of $148.19 and a 200 day moving average price of $139.38. The company has a market capitalization of $18.36 billion and a price-to-earnings ratio of -13.09.

Reddit (NYSE:RDDT) last announced its quarterly earnings data 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 24.71% and a negative net margin of 37.25%. As a group, sell-side analysts predict that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

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.