Reddit (NYSE:RDDT) Shares Down 5.1% – Should You Sell?

Reddit, Inc. (NYSE:RDDT)’s stock price traded down 5.1% during trading on Tuesday . The company traded as low as $167.32 and last traded at $169.10. 3,473,241 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 5,149,702 shares. The stock had previously closed at $178.10.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Jefferies Financial Group upped their price target on Reddit from $120.00 to $175.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. Wells Fargo & Company assumed coverage on shares of Reddit in a report on Wednesday, December 11th. They issued an “overweight” rating and a $206.00 price objective for the company. JMP Securities increased their price objective on Reddit from $118.00 to $160.00 and gave the company a “market outperform” rating in a research note on Monday, November 25th. Morgan Stanley upgraded shares of Reddit from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $70.00 to $200.00 in a report on Monday, December 9th. Finally, Bank of America boosted their target price on Reddit from $84.00 to $99.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 30th. One research analyst has rated the stock with a sell rating, five have given a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Reddit has a consensus rating of “Moderate Buy” and an average price target of $124.42.

Reddit Stock Up 1.9 %

The firm’s 50 day simple moving average is $125.78 and its 200 day simple moving average is $84.34.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $348.40 million for the quarter, compared to analysts’ expectations of $313.61 million. The company’s quarterly revenue was up 67.9% compared to the same quarter last year. Equities research analysts forecast that Reddit, Inc. will post -3.46 EPS for the current fiscal year.

Insider Activity

In related news, COO Jennifer L. Wong sold 33,334 shares of the business’s stock in a transaction on Wednesday, October 16th. The stock was sold at an average price of $76.27, for a total value of $2,542,384.18. Following the completion of the sale, the chief operating officer now directly owns 1,542,457 shares in the company, valued at $117,643,195.39. The trade was a 2.12 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 14,000 shares of the company’s stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $176.20, for a total transaction of $2,466,800.00. Following the completion of the transaction, the chief executive officer now owns 620,971 shares in the company, valued at $109,415,090.20. This trade represents a 2.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 264,357 shares of company stock valued at $32,762,690 in the last 90 days.

Hedge Funds Weigh In On Reddit

Several hedge funds and other institutional investors have recently modified their holdings of the business. FMR LLC increased its position in Reddit by 302.8% during the 3rd quarter. FMR LLC now owns 12,157,591 shares of the company’s stock valued at $801,428,000 after purchasing an additional 9,139,196 shares during the period. VY Capital Management Co. Ltd. purchased a new stake in Reddit in the 3rd quarter valued at about $474,403,000. Holocene Advisors LP lifted its position in shares of Reddit by 177.6% during the 3rd quarter. Holocene Advisors LP now owns 3,005,977 shares of the company’s stock worth $198,154,000 after buying an additional 1,923,109 shares in the last quarter. Point72 Asset Management L.P. grew its holdings in shares of Reddit by 3,172.0% in the third quarter. Point72 Asset Management L.P. now owns 2,296,068 shares of the company’s stock valued at $151,357,000 after acquiring an additional 2,225,895 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its position in shares of Reddit by 10.1% during the second quarter. Bank of New York Mellon Corp now owns 1,663,603 shares of the company’s stock valued at $106,288,000 after acquiring an additional 153,282 shares during the last quarter.

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.