Reddit (NYSE:RDDT) Shares Gap Down – Time to Sell?

Reddit, Inc. (NYSE:RDDT) gapped down prior to trading on Monday . The stock had previously closed at $112.35, but opened at $109.16. Reddit shares last traded at $109.65, with a volume of 1,063,816 shares changing hands.

Wall Street Analyst Weigh In

RDDT has been the subject of a number of recent research reports. Morgan Stanley decreased their price objective on Reddit from $210.00 to $140.00 and set an “overweight” rating for the company in a report on Thursday, April 17th. Roth Capital reiterated a “neutral” rating on shares of Reddit in a report on Friday, May 2nd. Roth Mkm increased their price target on Reddit from $120.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, May 2nd. JMP Securities reiterated a “market outperform” rating and set a $180.00 price target on shares of Reddit in a report on Friday, May 2nd. Finally, Needham & Company LLC increased their price target on Reddit from $135.00 to $145.00 and gave the stock a “buy” rating in a report on Friday, May 2nd. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, twelve have given a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $139.78.

Reddit Trading Down 0.9%

The company’s 50-day simple moving average is $106.09 and its 200 day simple moving average is $144.11. The stock has a market cap of $20.50 billion, a P/E ratio of -14.38, a PEG ratio of 4.72 and a beta of 2.90.

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

Insider Transactions at Reddit

In related news, CFO Andrew Vollero sold 100,000 shares of Reddit stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $124.08, for a total value of $12,408,000.00. Following the completion of the transaction, the chief financial officer now directly owns 499,295 shares in the company, valued at approximately $61,952,523.60. The trade was a 16.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Benjamin Seong Lee sold 6,854 shares of Reddit stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $98.42, for a total transaction of $674,570.68. Following the completion of the transaction, the insider now owns 99,277 shares of the company’s stock, valued at $9,770,842.34. This represents a 6.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 677,875 shares of company stock worth $76,732,994 in the last quarter.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Plato Investment Management Ltd purchased a new position in Reddit in the 4th quarter valued at approximately $27,000. EverSource Wealth Advisors LLC purchased a new position in shares of Reddit during the 4th quarter valued at $28,000. Farmers & Merchants Investments Inc. purchased a new position in shares of Reddit during the 4th quarter valued at $33,000. Bogart Wealth LLC purchased a new position in shares of Reddit during the 4th quarter valued at $33,000. Finally, Allworth Financial LP grew its position in shares of Reddit by 970.0% during the 4th quarter. Allworth Financial LP now owns 214 shares of the company’s stock valued at $35,000 after purchasing an additional 194 shares in the last quarter.

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.