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

Reddit, Inc. (NYSE:RDDT - Get Free Report)'s stock price 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 the firm's stock in a transaction that occurred on 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 approximately $18,095,407.35. This trade represents a 44.52 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Michelle Marie Reynolds sold 11,965 shares of the firm's stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $157.41, for a total transaction of $1,883,410.65. Following the sale, the chief accounting officer now owns 48,418 shares of the company's stock, valued at $7,621,477.38. The trade was 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 firm'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 completion of the sale, the chief executive officer now directly owns 597,515 shares in the company, valued at approximately $95,781,654.50. This trade represents a 2.29 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

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Analysts Set New Price Targets

A number of equities analysts recently commented on RDDT shares. Robert W. Baird raised their price objective 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. Roth Mkm lowered shares of Reddit from a "buy" rating to a "neutral" rating and raised their price objective for the stock from $116.00 to $195.00 in a research note on Wednesday, January 22nd. Bank of America raised their price objective on shares of Reddit from $180.00 to $190.00 and gave the stock a "neutral" rating in a research note on Thursday, February 13th. JMP Securities raised their price objective on shares of Reddit from $190.00 to $200.00 and gave the stock a "market outperform" rating in a research note on Thursday, February 13th. Finally, B. Riley raised their price objective on shares of Reddit from $112.00 to $187.00 and gave the stock a "buy" rating in a research note on Tuesday, January 14th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $175.95.

Reddit Trading Down 11.0 %

The firm has a market cap of $24.27 billion and a P/E ratio of -17.35. The business's fifty day moving average price is $181.61 and its two-hundred day moving average price is $130.99.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, beating 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%. Research analysts predict that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

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