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

Reddit, Inc. (NYSE:RDDT) gapped down prior to trading on Monday . The stock had previously closed at $173.54, but opened at $167.38. Reddit shares last traded at $163.41, with a volume of 1,112,909 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on RDDT shares. JPMorgan Chase & Co. increased their price target on Reddit from $59.00 to $77.00 and gave the company a “neutral” rating in a report on Monday, October 7th. Guggenheim started coverage on shares of Reddit in a report on Friday, December 20th. They set a “buy” rating and a $210.00 price objective for the company. Roth Mkm boosted their price objective on shares of Reddit from $89.00 to $116.00 and gave the stock a “buy” rating in a research report on Wednesday, October 30th. Robert W. Baird boosted their price target on shares of Reddit from $100.00 to $160.00 and gave the company a “neutral” rating in a report on Wednesday, December 11th. Finally, Bank of America increased their target price on Reddit from $84.00 to $99.00 and gave the stock a “neutral” rating in a report on Wednesday, October 30th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $132.70.

Reddit Stock Performance

The stock’s 50-day simple moving average is $137.51 and its two-hundred day simple moving average is $89.50.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Tuesday, October 29th. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.23. Reddit had a negative net margin of 47.83% and a negative return on equity of 40.54%. The business 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% on a year-over-year basis. On average, equities research analysts expect that Reddit, Inc. will post -3.46 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, 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 value of $2,704,885.14. Following the sale, the insider now owns 138,401 shares of the company’s stock, valued at approximately $20,214,850.06. This trade represents a 11.80 % 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, CTO Christopher Brian Slowe sold 11,000 shares of the stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $169.85, for a total transaction of $1,868,350.00. Following the completion of the sale, the chief technology officer now owns 324,837 shares of the company’s stock, valued at approximately $55,173,564.45. The trade was a 3.28 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 250,357 shares of company stock worth $32,983,080 over the last quarter.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Whittier Trust Co. purchased a new stake in Reddit during the third quarter worth about $42,000. Daiwa Securities Group Inc. purchased a new stake in Reddit during the 3rd quarter worth approximately $85,000. SOA Wealth Advisors LLC. lifted its holdings in Reddit by 56.3% during the 3rd quarter. SOA Wealth Advisors LLC. now owns 1,919 shares of the company’s stock worth $126,000 after buying an additional 691 shares in the last quarter. Sanctuary Advisors LLC purchased a new position in Reddit in the 3rd quarter valued at approximately $144,000. Finally, Paragon Capital Management Ltd acquired a new position in shares of Reddit in the third quarter worth $204,000.

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.