Reddit (NYSE:RDDT) Shares Gap Down – What’s Next?

Reddit, Inc. (NYSE:RDDT) shares gapped down before the market opened on Wednesday . The stock had previously closed at $110.05, but opened at $104.85. Reddit shares last traded at $112.18, with a volume of 1,013,600 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the company. Robert W. Baird increased their price target on Reddit from $160.00 to $185.00 and gave the company a “neutral” rating in a research report on Thursday, February 13th. Bank of America upped their price target on shares of Reddit from $180.00 to $190.00 and gave the company a “neutral” rating in a research report on Thursday, February 13th. Wells Fargo & Company lowered their price objective on shares of Reddit from $215.00 to $158.00 and set an “overweight” rating on the stock in a research report on Monday. Roth Capital lowered Reddit from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, January 22nd. Finally, The Goldman Sachs Group raised their price objective on Reddit from $105.00 to $176.00 and gave the stock a “neutral” rating in a research report on Tuesday, January 14th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and an average price target of $163.00.

Reddit Stock Performance

The stock has a market cap of $20.27 billion and a P/E ratio of -14.49. The company has a 50-day simple moving average of $162.96 and a 200-day simple moving average of $138.49.

Reddit (NYSE:RDDT) last announced its earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. As a group, sell-side analysts expect that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In related news, CFO Andrew Vollero sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $124.08, for a total transaction of $12,408,000.00. Following the transaction, the chief financial officer now directly owns 499,295 shares of the company’s stock, valued at approximately $61,952,523.60. The trade was a 16.69 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Michelle Marie Reynolds sold 11,965 shares of the stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $157.41, for a total transaction of $1,883,410.65. Following the completion of the transaction, the chief accounting officer now directly owns 48,418 shares in the company, valued at $7,621,477.38. The trade was a 19.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 589,794 shares of company stock valued at $87,940,784.

Institutional Trading of Reddit

Several hedge funds and other institutional investors have recently modified their holdings of RDDT. Charles Schwab Investment Management Inc. lifted its position in Reddit by 194.8% during the third quarter. Charles Schwab Investment Management Inc. now owns 503,321 shares of the company’s stock worth $33,179,000 after acquiring an additional 332,604 shares during the last quarter. Cerity Partners LLC bought a new stake in shares of Reddit in the third quarter valued at about $446,000. The Manufacturers Life Insurance Company bought a new position in Reddit during the third quarter worth about $1,053,000. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Reddit in the 3rd quarter worth about $349,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of Reddit during the third quarter worth approximately $2,724,000.

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.