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

Reddit, Inc. (NYSE:RDDT) shares gapped down prior to trading on Monday . The stock had previously closed at $113.23, but opened at $104.89. Reddit shares last traded at $108.83, with a volume of 4,288,449 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RDDT. Truist Financial began coverage on Reddit in a research report on Monday, April 7th. They issued a “buy” rating and a $150.00 target price for the company. Redburn Partners set a $75.00 target price on Reddit in a research report on Monday, March 17th. Sanford C. Bernstein raised Reddit from an “underperform” rating to a “market perform” rating and set a $130.00 target price for the company in a research report on Friday, May 2nd. Needham & Company LLC upped their target price on Reddit from $135.00 to $145.00 and gave the company a “buy” rating in a research report on Friday, May 2nd. Finally, Roth Capital reissued a “neutral” rating on shares of Reddit in a research report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, eight have given a hold rating, twelve have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $141.36.

Reddit Stock Down 4.0%

The company has a 50-day moving average price of $109.40 and a 200-day moving average price of $145.91. The firm has a market capitalization of $20.06 billion, a price-to-earnings ratio of -14.09, a P/E/G ratio of 4.72 and a beta of 2.90.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, May 1st. The company reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.11. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The firm had revenue of $392.36 million during the quarter, compared to the consensus estimate of $370.55 million. During the same period in the prior year, the firm posted ($8.19) earnings per share. The firm’s revenue for the quarter was up 61.5% compared to the same quarter last year. As a group, analysts forecast that Reddit, Inc. will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $187.78, for a total value of $2,628,920.00. Following the completion of the sale, the chief executive officer now owns 614,394 shares in the company, valued at approximately $115,370,905.32. This trade represents a 2.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Jennifer L. Wong sold 33,334 shares of the firm’s stock in a transaction that occurred on Wednesday, April 16th. The stock was sold at an average price of $93.99, for a total value of $3,133,062.66. Following the transaction, the chief operating officer now owns 1,466,119 shares of the company’s stock, valued at $137,800,524.81. This trade represents a 2.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 725,270 shares of company stock valued at $95,789,365 over the last three months.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Plato Investment Management Ltd bought a new position in shares of Reddit in the fourth quarter valued at approximately $27,000. EverSource Wealth Advisors LLC bought a new position in shares of Reddit in the fourth quarter valued at approximately $28,000. Farmers & Merchants Investments Inc. bought a new position in Reddit in the 4th quarter worth approximately $33,000. Bogart Wealth LLC bought a new position in Reddit in the 4th quarter worth approximately $33,000. Finally, Allworth Financial LP raised its position in Reddit by 970.0% in the 4th quarter. Allworth Financial LP now owns 214 shares of the company’s stock worth $35,000 after purchasing an additional 194 shares during the last quarter.

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.