Reddit (NYSE:RDDT) Shares Gap Down - Should You Sell?

Reddit, Inc. (NYSE:RDDT - Get Free Report)'s stock price 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.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Citigroup raised their price objective on Reddit from $150.00 to $158.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. JMP Securities restated a "market outperform" rating and issued a $180.00 target price on shares of Reddit in a research report on Friday, May 2nd. Truist Financial initiated coverage on Reddit in a research report on Monday, April 7th. They issued a "buy" rating and a $150.00 target price on the stock. Guggenheim lowered their price objective on Reddit from $170.00 to $165.00 and set a "buy" rating on the stock in a research note on Friday, May 2nd. Finally, Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a research note on Friday, May 30th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, twelve have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $139.78.

Reddit Stock Up 6.7%

The firm has a market cap of $21.82 billion, a price-to-earnings ratio of -15.30, a price-to-earnings-growth ratio of 4.72 and a beta of 2.90. The stock's 50 day moving average is $106.30 and its 200 day moving average is $143.93.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, May 1st. The company reported $0.13 earnings per share for the quarter, topping 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 for the quarter, compared to analysts' expectations of $370.55 million. During the same quarter last year, the business posted ($8.19) EPS. Reddit's revenue was up 61.5% on a year-over-year basis. Analysts anticipate that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the firm's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $110.05, for a total transaction of $1,540,700.00. Following the completion of the sale, the chief executive officer now directly owns 560,133 shares of the company's stock, valued at $61,642,636.65. This trade represents a 2.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Christopher Brian Slowe sold 26,000 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $98.43, for a total value of $2,559,180.00. Following the completion of the sale, the chief technology officer now directly owns 251,373 shares of the company's stock, valued at approximately $24,742,644.39. The trade was a 9.37% decrease in their position. 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 Trading of Reddit

Several large investors have recently added to or reduced their stakes in RDDT. FMR LLC boosted its holdings in Reddit by 7.5% in the fourth quarter. FMR LLC now owns 13,070,780 shares of the company's stock worth $2,136,288,000 after purchasing an additional 913,189 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Reddit by 11.1% in the 1st quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock valued at $1,069,828,000 after acquiring an additional 1,017,162 shares in the last quarter. Alliancebernstein L.P. raised its stake in shares of Reddit by 103.0% in the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock valued at $593,733,000 after acquiring an additional 2,871,232 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in Reddit by 10.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,073,939 shares of the company's stock worth $427,357,000 after purchasing an additional 389,761 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in Reddit by 98.2% during the first quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after purchasing an additional 944,847 shares during the last quarter.

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.