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

Reddit, Inc. (NYSE:RDDT) 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 trading hands.

Analysts Set New Price Targets

Several equities research analysts have recently commented on RDDT shares. Seaport Res Ptn raised Reddit from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 5th. Truist Financial assumed coverage on shares of Reddit in a report on Monday, April 7th. They set a “buy” rating and a $150.00 target price for the company. Guggenheim lowered their target price on shares of Reddit from $170.00 to $165.00 and set a “buy” rating for the company in a report on Friday, May 2nd. Wells Fargo & Company reaffirmed an “equal weight” rating and set a $115.00 target price (down previously from $168.00) on shares of Reddit in a report on Monday. Finally, Redburn Partners set a $75.00 target price on shares of Reddit in a report on Monday, March 17th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, Reddit currently has an average rating of “Moderate Buy” and a consensus price target of $141.36.

Reddit Price Performance

The firm’s fifty day moving average is $109.40 and its 200-day moving average is $145.91. The firm has a market cap of $20.06 billion, a price-to-earnings ratio of -14.09, a price-to-earnings-growth ratio of 4.72 and a beta of 2.90.

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

Insider Buying and Selling

In other news, CFO Andrew Vollero sold 48,122 shares of the company’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $162.80, for a total transaction of $7,834,261.60. Following the transaction, the chief financial officer now owns 599,295 shares of the company’s stock, valued at $97,565,226. This represents a 7.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve Ladd Huffman sold 14,000 shares of the business’s 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 $115,370,905.32. This represents a 2.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 725,270 shares of company stock worth $95,789,365.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Plato Investment Management Ltd purchased a new position in shares of Reddit in the fourth quarter valued at $27,000. CWM LLC grew its position in shares of Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company’s stock valued at $27,000 after purchasing an additional 128 shares in the last quarter. EverSource Wealth Advisors LLC purchased a new position in shares of Reddit in the fourth quarter valued at $28,000. Stone House Investment Management LLC purchased a new position in shares of Reddit in the first quarter valued at $31,000. Finally, Farmers & Merchants Investments Inc. purchased a new position in shares of Reddit in the fourth quarter valued at $33,000.

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.