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

Key Points

• Reddit's stock opened at $213.00 after closing at $229.99, representing a significant gap down prior to the market opening.
• Several analysts have recently upgraded Reddit's stock rating, with Piper Sandler increasing its price target from $210.00 to $290.00.
• In the past quarter, insider transactions saw CEO Steve Huffman and CTO Christopher Slowe sell substantial shares, leading to a total of 379,834 shares sold valued at approximately $82.39 million.

Reddit Inc. (NYSE:RDDT - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $229.99, but opened at $213.00. Reddit shares last traded at $212.19, with a volume of 4,787,661 shares trading hands.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on RDDT. Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a research note on Sunday, September 7th. Piper Sandler boosted their price objective on Reddit from $210.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, September 18th. Wolfe Research upgraded Reddit to an "outperform" rating in a research note on Sunday, August 3rd. Loop Capital decreased their target price on Reddit from $210.00 to $200.00 and set a "buy" rating on the stock in a research note on Thursday, June 12th. Finally, The Goldman Sachs Group restated a "neutral" rating and issued a $212.00 target price on shares of Reddit in a research note on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $201.58.

Reddit Trading Down 9.5%

The business has a fifty day moving average price of $221.43 and a 200-day moving average price of $154.71. The stock has a market capitalization of $38.96 billion, a PE ratio of 188.02, a PEG ratio of 3.81 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.25. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The firm had revenue of $499.63 million during the quarter, compared to analysts' expectations of $424.07 million. During the same period in the prior year, the business earned ($0.06) EPS. The company's revenue for the quarter was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. On average, equities analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $223.41, for a total transaction of $4,021,380.00. Following the completion of the sale, the chief executive officer directly owned 494,104 shares in the company, valued at $110,387,774.64. This represents a 3.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CTO Christopher Brian Slowe sold 28,000 shares of the stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $218.94, for a total value of $6,130,320.00. Following the sale, the chief technology officer owned 222,534 shares of the company's stock, valued at $48,721,593.96. This represents a 11.18% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 379,834 shares of company stock valued at $82,388,799 over the last quarter. 34.25% of the stock is owned by company insiders.

Institutional Investors Weigh In On Reddit

Several institutional investors have recently bought and sold shares of the stock. Praxis Investment Management Inc. lifted its holdings in Reddit by 129.5% in the 3rd quarter. Praxis Investment Management Inc. now owns 7,276 shares of the company's stock worth $1,673,000 after buying an additional 4,106 shares during the period. Valeo Financial Advisors LLC bought a new position in shares of Reddit in the 2nd quarter worth approximately $253,000. Infini Capital Management Ltd bought a new position in Reddit during the 2nd quarter valued at approximately $602,000. Orion Porfolio Solutions LLC bought a new position in Reddit during the 2nd quarter valued at approximately $201,000. Finally, Munro Partners bought a new position in Reddit during the 2nd quarter valued at approximately $2,802,000.

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.

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