Reddit (NYSE:RDDT) Shares Gap Down on Insider Selling

Shares of Reddit, Inc. (NYSE:RDDT) gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $158.02, but opened at $145.41. Reddit shares last traded at $147.10, with a volume of 4,195,083 shares changing hands.

Specifically, insider Benjamin Seong Lee sold 18,519 shares of Reddit stock in a transaction on Friday, November 22nd. The shares were sold at an average price of $146.06, for a total transaction of $2,704,885.14. Following the completion of the sale, the insider now owns 138,401 shares of the company’s stock, valued at approximately $20,214,850.06. The trade was a 11.80 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Christopher Brian Slowe sold 21,000 shares of the business’s stock in a transaction dated Friday, November 22nd. The stock was sold at an average price of $146.01, for a total value of $3,066,210.00. Following the transaction, the chief technology officer now owns 297,925 shares of the company’s stock, valued at $43,500,029.25. The trade was a 6.58 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other Reddit news, COO Jennifer L. Wong sold 33,333 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $128.13, for a total value of $4,270,957.29. Following the completion of the sale, the chief operating officer now owns 1,542,457 shares of the company’s stock, valued at approximately $197,635,015.41. This represents a 2.12 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Analysts Set New Price Targets

RDDT has been the subject of a number of research reports. Cannonball Research initiated coverage on Reddit in a research note on Tuesday, August 6th. They set a “buy” rating and a $67.00 target price for the company. Piper Sandler reiterated an “overweight” rating and set a $150.00 target price (up from $115.00) on shares of Reddit in a research note on Tuesday, November 19th. Loop Capital increased their price target on Reddit from $80.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, October 25th. Bank of America increased their target price on shares of Reddit from $84.00 to $99.00 and gave the stock a “neutral” rating in a report on Wednesday, October 30th. Finally, Jefferies Financial Group raised their target price on Reddit from $90.00 to $100.00 and gave the stock a “buy” rating in a research report on Tuesday, October 22nd. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $91.67.

Reddit Price Performance

The company’s 50-day moving average is $92.06 and its two-hundred day moving average is $71.40.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $313.61 million. The business’s revenue was up 67.9% compared to the same quarter last year. On average, equities analysts expect that Reddit, Inc. will post -3.63 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RDDT. Whittier Trust Co. bought a new position in shares of Reddit in the 3rd quarter worth about $42,000. BNP Paribas Financial Markets bought a new stake in shares of Reddit during the first quarter valued at approximately $37,000. SOA Wealth Advisors LLC. purchased a new position in Reddit during the second quarter valued at $78,000. Daiwa Securities Group Inc. purchased a new stake in Reddit in the 3rd quarter worth $85,000. Finally, UMB Bank n.a. bought a new stake in shares of Reddit in the second quarter worth about $88,000.

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.