Reddit (NYSE:RDDT) Shares Gap Down - Here's What Happened

Shares of Reddit, Inc. (NYSE:RDDT - Get Free Report) gapped down before the market opened 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.

Analyst Upgrades and Downgrades

RDDT has been the subject of a number of research analyst reports. B. Riley lifted their price target on Reddit from $112.00 to $187.00 and gave the company a "buy" rating in a report on Tuesday, January 14th. Needham & Company LLC reiterated a "buy" rating and set a $220.00 target price on shares of Reddit in a research report on Friday, March 21st. Piper Sandler raised their price target on shares of Reddit from $210.00 to $220.00 and gave the company an "overweight" rating in a report on Friday, February 21st. Robert W. Baird boosted their price objective on shares of Reddit from $160.00 to $185.00 and gave the stock a "neutral" rating in a research report on Thursday, February 13th. Finally, The Goldman Sachs Group lifted their target price on Reddit from $105.00 to $176.00 and gave the company a "neutral" rating in a research note on Tuesday, January 14th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $163.00.

Reddit Stock Performance

The stock has a market capitalization of $15.69 billion and a price-to-earnings ratio of -11.22. The firm's fifty day simple moving average is $157.86 and its 200 day simple moving average is $138.19.

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Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data 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 return on equity of 24.71% and a negative net margin of 37.25%. Analysts forecast that Reddit, Inc. will post 1.12 earnings per share for the current year.

Insider Activity at Reddit

In other Reddit news, insider Benjamin Seong Lee sold 92,299 shares of the company's stock in a transaction 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 sale, the insider now directly owns 115,001 shares of the company's stock, valued at approximately $18,095,407.35. This represents a 44.52 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction dated Friday, January 31st. The shares were sold at an average price of $201.96, for a total transaction of $2,827,440.00. Following the completion of the transaction, the chief executive officer now directly owns 614,394 shares of the company's stock, valued at approximately $124,083,012.24. This trade represents a 2.23 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 603,794 shares of company stock valued at $89,386,704.

Hedge Funds Weigh In On Reddit

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Plato Investment Management Ltd bought a new stake in shares of Reddit during the 4th quarter worth about $27,000. EverSource Wealth Advisors LLC bought a new stake in shares of Reddit during the fourth quarter worth approximately $28,000. Ridgewood Investments LLC boosted its holdings 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 acquiring an additional 100 shares during the period. Farmers & Merchants Investments Inc. acquired a new position in shares of Reddit in the fourth quarter valued at approximately $33,000. Finally, Bogart Wealth LLC bought a new position in shares of Reddit during the fourth quarter worth approximately $33,000.

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.