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

Reddit, Inc. (NYSE:RDDT - Get Free Report) shares 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.

Analyst Upgrades and Downgrades

Several brokerages recently commented on RDDT. Redburn Partners set a $75.00 target price on shares of Reddit in a report on Monday, March 17th. Truist Financial began coverage on Reddit in a research note on Monday. They issued a "buy" rating and a $150.00 price target for the company. The Goldman Sachs Group lifted their target price on Reddit from $105.00 to $176.00 and gave the stock a "neutral" rating in a report on Tuesday, January 14th. Bank of America upped their price target on shares of Reddit from $180.00 to $190.00 and gave the company a "neutral" rating in a research note on Thursday, February 13th. Finally, B. Riley lifted their price target on shares of Reddit from $112.00 to $187.00 and gave the company a "buy" rating in a research report on Tuesday, January 14th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $162.41.

Reddit Stock Up 5.4 %

The company has a market cap of $16.57 billion and a P/E ratio of -11.82. The firm's 50 day moving average is $157.86 and its two-hundred day moving average is $139.25.

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%. As a group, research analysts forecast that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction that occurred 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 of the company's stock, valued at $106,161,139.26. This trade represents a 2.23 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Benjamin Seong Lee sold 92,299 shares of the business's stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total value of $14,523,247.65. Following the completion of the transaction, the insider now directly owns 115,001 shares in the company, valued at approximately $18,095,407.35. This represents a 44.52 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 603,794 shares of company stock valued at $89,386,704 in the last 90 days.

Institutional Investors Weigh In On Reddit

Several large investors have recently modified their holdings of the stock. Cerity Partners LLC purchased a new position in Reddit in the 3rd quarter valued at approximately $446,000. The Manufacturers Life Insurance Company purchased a new position in Reddit during the third quarter valued at approximately $1,053,000. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in Reddit during the 3rd quarter worth approximately $349,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in Reddit in the 3rd quarter worth approximately $2,724,000. Finally, HighTower Advisors LLC boosted its holdings in Reddit by 154.0% in the 3rd quarter. HighTower Advisors LLC now owns 11,699 shares of the company's stock valued at $770,000 after purchasing an additional 7,094 shares during the period.

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.