Reddit (NYSE:RDDT) Shares Gap Down – Here’s Why

Reddit, Inc. (NYSE:RDDT)’s stock price gapped down prior to trading 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.

Wall Street Analysts Forecast Growth

Several brokerages have commented on RDDT. JPMorgan Chase & Co. boosted their price objective on shares of Reddit from $142.00 to $185.00 and gave the company a “neutral” rating in a research report on Thursday, February 13th. Redburn Partners set a $75.00 price objective on Reddit in a research note on Monday, March 17th. Redburn Atlantic initiated coverage on shares of Reddit in a research report on Monday, March 17th. They set a “sell” rating and a $75.00 target price on the stock. Citigroup reissued an “outperform” rating on shares of Reddit in a report on Friday. Finally, Wells Fargo & Company dropped their price target on shares of Reddit from $215.00 to $158.00 and set an “overweight” rating for the company in a research note on Monday. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Reddit currently has an average rating of “Moderate Buy” and a consensus price target of $163.00.

Reddit Price Performance

The firm has a fifty day moving average price of $162.96 and a 200-day moving average price of $138.49. The company has a market capitalization of $20.27 billion and a P/E ratio of -14.49.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. On average, research analysts forecast that Reddit, Inc. will post 1.12 EPS for the current year.

Insider Activity at Reddit

In other Reddit news, CFO Andrew Vollero sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $124.08, for a total value of $12,408,000.00. Following the completion of the transaction, the chief financial officer now owns 499,295 shares of the company’s stock, valued at $61,952,523.60. The trade was a 16.69 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David C. Habiger bought 774 shares of the company’s stock in a transaction that occurred on Wednesday, March 12th. The stock was purchased at an average price of $130.36 per share, with a total value of $100,898.64. Following the transaction, the director now directly owns 30,808 shares in the company, valued at $4,016,130.88. The trade was a 2.58 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have sold 589,794 shares of company stock worth $87,940,784.

Institutional Investors Weigh In On Reddit

Large investors have recently added to or reduced their stakes in the company. Plato Investment Management Ltd purchased a new stake in Reddit in the 4th quarter worth approximately $27,000. EverSource Wealth Advisors LLC bought a new position in Reddit in the 4th quarter worth $28,000. Ridgewood Investments LLC lifted its position in shares of Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock worth $33,000 after purchasing an additional 100 shares during the period. Farmers & Merchants Investments Inc. bought a new position in Reddit in the fourth quarter worth $33,000. Finally, Bogart Wealth LLC purchased a new position in Reddit during the 4th quarter valued at about $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.