Reddit (NYSE:RDDT) Trading Down 10.3% – What’s Next?

Shares of Reddit, Inc. (NYSE:RDDT) were down 10.3% during trading on Tuesday . The stock traded as low as $112.91 and last traded at $112.68. Approximately 1,957,038 shares were traded during mid-day trading, a decline of 65% from the average daily volume of 5,659,296 shares. The stock had previously closed at $125.56.

Analyst Upgrades and Downgrades

Several equities analysts have commented on RDDT shares. Roth Capital lowered shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Loop Capital reissued a “buy” rating and issued a $210.00 target price on shares of Reddit in a report on Tuesday, March 11th. Morgan Stanley raised their target price on shares of Reddit from $200.00 to $210.00 and gave the company an “overweight” rating in a report on Thursday, February 13th. Bank of America raised their target price on shares of Reddit from $180.00 to $190.00 and gave the company a “neutral” rating in a report on Thursday, February 13th. Finally, JMP Securities raised their target price on shares of Reddit from $190.00 to $200.00 and gave the company a “market outperform” rating in a report on Thursday, February 13th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $164.50.

Reddit Stock Performance

The stock has a market capitalization of $20.30 billion and a P/E ratio of -14.48. The stock’s fifty day simple moving average is $175.99 and its two-hundred day simple moving average is $134.24.

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

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 14,000 shares of the business’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $172.79, for a total transaction of $2,419,060.00. Following the transaction, the chief executive officer now owns 614,394 shares in the company, valued at $106,161,139.26. The trade was a 2.23 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CTO Christopher Brian Slowe sold 11,000 shares of the business’s stock in a transaction on 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 transaction, the chief technology officer now owns 324,837 shares in the company, valued at $55,173,564.45. The trade was a 3.28 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 346,053 shares of company stock worth $58,332,313.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of RDDT. Plato Investment Management Ltd acquired a new position in shares of Reddit during the 4th quarter valued at $27,000. EverSource Wealth Advisors LLC bought a new stake in Reddit during the 4th quarter valued at $28,000. Ridgewood Investments LLC increased its stake in Reddit by 100.0% during the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after purchasing an additional 100 shares in the last quarter. Farmers & Merchants Investments Inc. bought a new stake in Reddit during the 4th quarter valued at $33,000. Finally, Bogart Wealth LLC bought a new stake in Reddit during the 4th quarter valued at $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.