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

Shares of Reddit, Inc. (NYSE:RDDT) gapped down prior to trading on Friday after an insider sold shares in the company. 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 trading hands.

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

Analysts Set New Price Targets

RDDT has been the topic of a number of recent analyst reports. Bank of America raised their price target on shares of Reddit from $84.00 to $99.00 and gave the company a “neutral” rating in a research report on Wednesday, October 30th. Sanford C. Bernstein boosted their target price on Reddit from $65.00 to $85.00 and gave the stock an “underperform” rating in a research note on Wednesday, October 30th. B. Riley reaffirmed a “buy” rating and set a $112.00 price target (up from $87.00) on shares of Reddit in a research report on Wednesday, October 30th. Cannonball Research assumed coverage on Reddit in a research report on Tuesday, August 6th. They issued a “buy” rating and a $67.00 price objective on the stock. Finally, JMP Securities raised their target price on Reddit from $84.00 to $118.00 and gave the company a “market outperform” rating in a research report on Wednesday, October 30th. One investment analyst has rated the stock with a sell rating, six have given a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $91.67.

Reddit Stock Down 7.2 %

The stock’s 50 day simple moving average is $92.06 and its 200 day simple moving average is $71.40.

Reddit (NYSE:RDDT) last released its earnings results on Tuesday, October 29th. The company reported $0.16 EPS for the quarter, beating 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 business had revenue of $348.40 million for the quarter, compared to analysts’ expectations of $313.61 million. The business’s quarterly revenue was up 67.9% on a year-over-year basis. As a group, sell-side analysts expect that Reddit, Inc. will post -3.63 earnings per share for the current year.

Institutional Trading of Reddit

Hedge funds have recently bought and sold shares of the company. FMR LLC raised its stake in shares of Reddit by 302.8% during the third quarter. FMR LLC now owns 12,157,591 shares of the company’s stock worth $801,428,000 after acquiring an additional 9,139,196 shares in the last quarter. VY Capital Management Co. Ltd. purchased a new position in Reddit in the 3rd quarter worth $474,403,000. Holocene Advisors LP lifted its stake in Reddit by 177.6% in the third quarter. Holocene Advisors LP now owns 3,005,977 shares of the company’s stock worth $198,154,000 after purchasing an additional 1,923,109 shares during the last quarter. Point72 Asset Management L.P. boosted its position in Reddit by 3,172.0% during 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 buying an additional 2,225,895 shares during the period. Finally, Vanguard Group Inc. bought a new position in shares of Reddit during the first quarter valued at about $82,167,000.

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.