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

Reddit, Inc. (NYSE:RDDT - Get Free Report) gapped down prior to trading on Friday after an insider sold shares in the company. The stock had previously closed at $150.72, but opened at $147.02. Reddit shares last traded at $146.51, with a volume of 793,856 shares trading hands.

Specifically, insider Benjamin Seong Lee sold 92,299 shares of Reddit stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the completion of the sale, the insider now directly owns 115,001 shares in the company, valued at $18,095,407.35. This trade represents a 44.52 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Michelle Marie Reynolds sold 11,965 shares of the firm's stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $157.41, for a total value of $1,883,410.65. Following the transaction, the chief accounting officer now owns 48,418 shares of the company's stock, valued at $7,621,477.38. This trade represents a 19.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, CEO Steve Ladd Huffman sold 14,000 shares of the company's stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $160.30, for a total transaction of $2,244,200.00. Following the sale, the chief executive officer now directly owns 597,515 shares of the company's stock, valued at $95,781,654.50. This represents a 2.29 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

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Analysts Set New Price Targets

Several brokerages have recently issued reports on RDDT. Jefferies Financial Group increased their price objective on Reddit from $120.00 to $175.00 and gave the company a "buy" rating in a research note on Monday, November 25th. JMP Securities raised their price objective 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. Robert W. Baird boosted their target price on shares of Reddit from $160.00 to $185.00 and gave the stock a "neutral" rating in a research note on Thursday, February 13th. Bank of America raised their price target on Reddit from $180.00 to $190.00 and gave the company a "neutral" rating in a research note on Thursday, February 13th. Finally, Piper Sandler upped their price objective on Reddit from $210.00 to $220.00 and gave the stock an "overweight" rating in a research report on Friday, February 21st. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $175.95.

Reddit Stock Up 14.6 %

The firm has a market cap of $22.25 billion and a price-to-earnings ratio of -15.91. The business has a 50 day moving average price of $180.42 and a 200-day moving average price of $131.86.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. Research analysts anticipate that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Plato Investment Management Ltd acquired a new stake in Reddit in the fourth quarter worth about $27,000. EverSource Wealth Advisors LLC acquired a new stake in shares of Reddit during the 4th quarter worth approximately $28,000. Ridgewood Investments LLC raised its stake in shares of Reddit by 100.0% during the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company's stock worth $33,000 after buying an additional 100 shares during the last quarter. Farmers & Merchants Investments Inc. acquired a new position in Reddit in the fourth quarter valued at approximately $33,000. Finally, Bogart Wealth LLC bought a new stake in shares of 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.