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

Reddit, Inc. (NYSE:RDDT) shares gapped down before the market opened on Monday following insider selling activity. The stock had previously closed at $113.23, but opened at $104.89. Reddit shares last traded at $108.83, with a volume of 4,288,449 shares.

Specifically, CEO Steve Ladd Huffman sold 124,408 shares of the business’s stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $114.98, for a total value of $14,304,431.84. Following the completion of the sale, the chief executive officer now owns 577,013 shares of the company’s stock, valued at approximately $66,344,954.74. The trade was a 17.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on RDDT shares. Piper Sandler reaffirmed an “overweight” rating and set a $150.00 price objective (up previously from $140.00) on shares of Reddit in a research report on Friday, May 2nd. Sanford C. Bernstein upgraded shares of Reddit from an “underperform” rating to a “market perform” rating and set a $130.00 price target on the stock in a research note on Friday, May 2nd. Robert W. Baird set a $140.00 price target on shares of Reddit in a report on Monday, May 5th. Truist Financial began coverage on shares of Reddit in a report on Monday, April 7th. They issued a “buy” rating and a $150.00 price objective for the company. Finally, Citigroup increased their target price on shares of Reddit from $150.00 to $158.00 and gave the stock a “buy” rating in a research report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, twelve have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $141.36.

Reddit Price Performance

The company’s 50-day moving average price is $108.63 and its 200-day moving average price is $145.59. The company has a market cap of $19.46 billion, a P/E ratio of -13.64, a P/E/G ratio of 4.72 and a beta of 2.90.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, May 1st. The company reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.11. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The firm had revenue of $392.36 million during the quarter, compared to the consensus estimate of $370.55 million. During the same period last year, the company earned ($8.19) earnings per share. The business’s revenue was up 61.5% compared to the same quarter last year. On average, equities research analysts predict that Reddit, Inc. will post 1.12 EPS for the current year.

Institutional Investors Weigh In On Reddit

Large investors have recently modified their holdings of the business. Plato Investment Management Ltd bought a new stake in shares of Reddit in the 4th quarter valued at $27,000. CWM LLC raised its holdings in shares of Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company’s stock valued at $27,000 after purchasing an additional 128 shares during the last quarter. EverSource Wealth Advisors LLC bought a new stake in Reddit in the 4th quarter worth about $28,000. Stone House Investment Management LLC bought a new position in shares of Reddit during the 1st quarter worth approximately $31,000. Finally, Farmers & Merchants Investments Inc. bought a new stake in Reddit during the fourth quarter worth $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.