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

Shares of Reddit, Inc. (NYSE:RDDT - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $128.21, but opened at $123.62. Reddit shares last traded at $123.07, with a volume of 787,941 shares.

Analyst Upgrades and Downgrades

RDDT has been the topic of several recent analyst reports. Redburn Atlantic initiated coverage on shares of Reddit in a report on Monday, March 17th. They set a "sell" rating and a $75.00 price objective on the stock. Loop Capital reaffirmed a "buy" rating and issued a $210.00 price objective on shares of Reddit in a research report on Tuesday, March 11th. Seaport Res Ptn upgraded Reddit to a "hold" rating in a research note on Thursday, February 6th. Guggenheim reduced their price objective on Reddit from $210.00 to $170.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, The Goldman Sachs Group raised their price objective on Reddit from $105.00 to $176.00 and gave the stock a "neutral" rating in a research note on Tuesday, January 14th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Reddit has an average rating of "Hold" and an average target price of $162.68.

Reddit Stock Performance

The stock has a 50-day moving average of $171.19 and a 200-day moving average of $135.16. The firm has a market cap of $20.89 billion and a price-to-earnings ratio of -14.94.

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

Insider Buying and Selling at Reddit

In other Reddit news, CAO Michelle Marie Reynolds sold 11,965 shares of the company's stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $157.41, for a total value of $1,883,410.65. Following the completion of the transaction, the chief accounting officer now owns 48,418 shares of the company's stock, valued at $7,621,477.38. This represents a 19.82 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Steve Ladd Huffman sold 14,000 shares of the company's stock in a transaction dated Tuesday, December 31st. The stock was sold at an average price of $165.33, for a total value of $2,314,620.00. Following the completion of the transaction, the chief executive officer now directly owns 614,394 shares of the company's stock, valued at approximately $101,577,760.02. The trade was a 2.23 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 503,794 shares of company stock valued at $78,350,874 in the last three months.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RDDT. Prospera Financial Services Inc purchased a new stake in shares of Reddit in the third quarter worth approximately $248,000. Charles Schwab Investment Management Inc. lifted its holdings in Reddit by 194.8% during the third quarter. Charles Schwab Investment Management Inc. now owns 503,321 shares of the company's stock worth $33,179,000 after acquiring an additional 332,604 shares during the period. GM Advisory Group LLC bought a new stake in Reddit during the third quarter worth $255,000. Meridian Wealth Management LLC increased its position in Reddit by 29.7% in the third quarter. Meridian Wealth Management LLC now owns 45,650 shares of the company's stock worth $3,009,000 after buying an additional 10,466 shares during the last quarter. Finally, Cerity Partners LLC purchased a new stake in Reddit in the third quarter worth $446,000.

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.