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

Shares of Reddit, Inc. (NYSE:RDDT) gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $150.72, but opened at $147.02. Reddit shares last traded at $146.51, with a volume of 793,856 shares.

Specifically, insider Benjamin Seong Lee sold 92,299 shares of the company’s stock in a transaction that occurred 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 sale, the insider now directly owns 115,001 shares in the company, valued at $18,095,407.35. This represents a 44.52 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Michelle Marie Reynolds sold 11,965 shares of Reddit stock in a transaction on 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 transaction, the chief accounting officer now owns 48,418 shares in the company, valued at approximately $7,621,477.38. This represents a 19.82 % decrease in their position. The disclosure for this sale can be found here. In related news, CEO Steve Ladd Huffman sold 14,000 shares of the business’s stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $160.30, for a total value of $2,244,200.00. Following the sale, the chief executive officer now directly owns 597,515 shares in the company, valued at approximately $95,781,654.50. The trade was a 2.29 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Analysts Set New Price Targets

Several equities analysts have weighed in on RDDT shares. 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 report on Tuesday, January 14th. Bank of America increased their price objective on Reddit from $180.00 to $190.00 and gave the company a “neutral” rating in a report on Thursday, February 13th. Raymond James increased their price target on Reddit from $200.00 to $250.00 and gave the stock a “strong-buy” rating in a report on Monday, February 10th. Guggenheim began coverage on Reddit in a report on Friday, December 20th. They issued a “buy” rating and a $210.00 target price for the company. Finally, JPMorgan Chase & Co. raised their price target on Reddit from $142.00 to $185.00 and gave the company a “neutral” rating in a research report on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Reddit has a consensus rating of “Moderate Buy” and a consensus target price of $175.95.

Reddit Trading Down 11.0 %

The firm has a market capitalization of $24.27 billion and a price-to-earnings ratio of -17.35. The company’s 50 day moving average is $181.61 and its 200-day moving average is $130.47.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. Research analysts expect that Reddit, Inc. will post 1.12 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Plato Investment Management Ltd bought a new stake in Reddit during the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC purchased a new stake in Reddit in the 4th quarter valued at about $28,000. Ridgewood Investments LLC increased its stake in Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after buying an additional 100 shares during the last quarter. Farmers & Merchants Investments Inc. purchased a new stake in shares of Reddit during the 4th quarter worth approximately $33,000. Finally, Bogart Wealth LLC purchased a new stake in shares of Reddit during the 4th quarter worth approximately $33,000.

About Reddit

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.