Reddit (NYSE:RDDT) Shares Gap Down – Time to Sell?

Reddit, Inc. (NYSE:RDDT) shares 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.

Analysts Set New Price Targets

A number of research firms have weighed in on RDDT. The Goldman Sachs Group upped their target price on Reddit from $105.00 to $176.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 14th. B. Riley upped their target price on Reddit from $112.00 to $187.00 and gave the stock a “buy” rating in a research report on Tuesday, January 14th. JMP Securities upped their target price on Reddit from $190.00 to $200.00 and gave the stock a “market outperform” rating in a research report on Thursday, February 13th. Seaport Res Ptn upgraded Reddit to a “hold” rating in a research report on Thursday, February 6th. Finally, Wells Fargo & Company increased their price objective on Reddit from $206.00 to $215.00 and gave the company an “overweight” rating in a research report on Thursday, February 13th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $168.76.

Reddit Stock Down 4.1 %

The firm has a market capitalization of $22.24 billion and a price-to-earnings ratio of -15.88. The stock’s 50 day moving average price is $177.06 and its two-hundred day moving average price is $133.76.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, topping 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, equities analysts expect that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, Director David C. Habiger acquired 774 shares of the firm’s stock in a transaction that occurred on Wednesday, March 12th. The stock was purchased at an average cost of $130.36 per share, for a total transaction of $100,898.64. Following the completion of the acquisition, the director now owns 30,808 shares of the company’s stock, valued at approximately $4,016,130.88. This trade represents a 2.58 % increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Benjamin Seong Lee sold 92,299 shares of the company’s stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the completion of the sale, the insider now owns 115,001 shares of the company’s stock, valued at $18,095,407.35. This represents a 44.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 346,053 shares of company stock valued at $58,332,313.

Institutional Investors Weigh In On Reddit

A number of large investors have recently bought and sold shares of RDDT. Entropy Technologies LP bought a new stake in Reddit during the third quarter valued at about $231,000. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Reddit by 64.9% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 512,871 shares of the company’s stock valued at $33,808,000 after acquiring an additional 201,776 shares during the period. Victory Capital Management Inc. boosted its holdings in Reddit by 903.8% during the third quarter. Victory Capital Management Inc. now owns 504,116 shares of the company’s stock valued at $33,231,000 after acquiring an additional 453,894 shares during the period. Claro Advisors LLC bought a new stake in Reddit during the third quarter valued at about $1,879,000. Finally, Prospera Financial Services Inc bought a new stake in Reddit during the third quarter valued at about $248,000.

Reddit Company Profile

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.