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

Reddit Inc. (NYSE:RDDT)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $185.84, but opened at $172.90. Reddit shares last traded at $170.2640, with a volume of 2,320,629 shares changing hands.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Wall Street Zen downgraded Reddit from a “buy” rating to a “hold” rating in a research report on Sunday, May 10th. Piper Sandler reissued an “overweight” rating and issued a $215.00 target price on shares of Reddit in a research note on Thursday, July 9th. Wells Fargo & Company increased their target price on shares of Reddit from $176.00 to $187.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 7th. Citigroup restated a “market outperform” rating on shares of Reddit in a report on Tuesday, May 26th. Finally, Zacks Research cut shares of Reddit from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 3rd. Nineteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, Reddit presently has an average rating of “Moderate Buy” and an average target price of $232.48.

Reddit Trading Down 9.9%

The stock has a market capitalization of $32.24 billion, a P/E ratio of 47.84 and a beta of 1.93. The stock has a 50 day moving average of $173.90 and a 200-day moving average of $168.62.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.39. The company had revenue of $663.41 million during the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.Reddit’s revenue was up 69.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.13 EPS. Research analysts anticipate that Reddit Inc. will post 4.85 EPS for the current year.

Insider Transactions at Reddit

In other news, COO Jennifer L. Wong sold 39,166 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total value of $6,930,032.04. Following the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $185,846,982.66. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total transaction of $161,600.00. Following the completion of the transaction, the chief accounting officer directly owned 15,060 shares in the company, valued at $3,012,000. This represents a 5.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 169,141 shares of company stock worth $28,680,845. 28.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Reddit

Several large investors have recently added to or reduced their stakes in the stock. October Effect Ltd bought a new position in Reddit in the 2nd quarter worth about $4,867,000. Leavell Investment Management Inc. purchased a new position in shares of Reddit during the second quarter worth approximately $264,000. Guidance Capital Inc. bought a new stake in shares of Reddit during the second quarter valued at approximately $218,000. Hager Investment Management Services LLC raised its stake in shares of Reddit by 522.2% during the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock valued at $49,000 after acquiring an additional 235 shares in the last quarter. Finally, IFP Advisors Inc boosted its holdings in shares of Reddit by 8.8% in the second quarter. IFP Advisors Inc now owns 1,411 shares of the company’s stock valued at $245,000 after purchasing an additional 114 shares during the period.

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.