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 $173.54, but opened at $167.38. Reddit shares last traded at $163.41, with a volume of 1,112,909 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on RDDT shares. Roth Mkm upped their target price on shares of Reddit from $89.00 to $116.00 and gave the stock a “buy” rating in a research note on Wednesday, October 30th. The Goldman Sachs Group raised their price objective on shares of Reddit from $60.00 to $68.00 and gave the company a “neutral” rating in a report on Monday, October 14th. Robert W. Baird boosted their target price on shares of Reddit from $100.00 to $160.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 11th. JMP Securities raised their price target on Reddit from $118.00 to $160.00 and gave the company a “market outperform” rating in a research note on Monday, November 25th. Finally, Guggenheim initiated coverage on Reddit in a research report on Friday, December 20th. They set a “buy” rating and a $210.00 price objective for the company. One investment analyst has rated the stock with a sell rating, five have given a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $132.70.

Reddit Stock Down 4.0 %

The company has a 50-day moving average price of $137.51 and a 200 day moving average price of $89.50.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.23. Reddit had a negative return on equity of 40.54% and a negative net margin of 47.83%. The company had revenue of $348.40 million for the quarter, compared to the consensus estimate of $313.61 million. The firm’s quarterly revenue was up 67.9% on a year-over-year basis. Research analysts expect that Reddit, Inc. will post -3.46 EPS for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $75.43, for a total value of $1,056,020.00. Following the transaction, the chief executive officer now owns 651,775 shares in the company, valued at approximately $49,163,388.25. This trade represents a 2.10 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Andrew Vollero sold 19,838 shares of the company’s stock in a transaction on Monday, November 25th. The stock was sold at an average price of $143.22, for a total value of $2,841,198.36. Following the sale, the chief financial officer now owns 703,615 shares of the company’s stock, valued at approximately $100,771,740.30. This represents a 2.74 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 250,357 shares of company stock worth $32,983,080 in the last quarter.

Hedge Funds Weigh In On Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Raymond James & Associates grew its holdings in Reddit by 706.1% in the second quarter. Raymond James & Associates now owns 42,641 shares of the company’s stock worth $2,724,000 after purchasing an additional 37,351 shares during the period. Cambridge Investment Research Advisors Inc. purchased a new position in shares of Reddit during the 2nd quarter valued at $1,201,000. Commonwealth Equity Services LLC lifted its position in Reddit by 11.8% during the second quarter. Commonwealth Equity Services LLC now owns 25,185 shares of the company’s stock valued at $1,609,000 after purchasing an additional 2,659 shares during the last quarter. Regal Partners Ltd purchased a new position in shares of Reddit in the 2nd quarter worth about $4,620,000. Finally, TD Asset Management Inc bought a new position in shares of Reddit during the 2nd quarter valued at $6,566,000.

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.