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

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

RDDT has been the subject of a number of research analyst reports. Redburn Atlantic started coverage on shares of Reddit in a research note on Monday, March 17th. They issued a "sell" rating and a $75.00 price target for the company. JPMorgan Chase & Co. decreased their target price on shares of Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a research note on Tuesday, April 8th. Bank of America dropped their price target on Reddit from $190.00 to $110.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 9th. Robert W. Baird cut their price objective on Reddit from $140.00 to $120.00 and set a "neutral" rating for the company in a report on Wednesday, May 21st. Finally, Roth Capital reissued a "neutral" rating on shares of Reddit in a report on Friday, May 2nd. 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, Reddit has a consensus rating of "Moderate Buy" and an average price target of $139.78.

Reddit Stock Up 8.0%

The business's 50-day simple moving average is $106.45 and its two-hundred day simple moving average is $143.81. The firm has a market cap of $22.36 billion, a price-to-earnings ratio of -15.68, a P/E/G ratio of 4.72 and a beta of 2.90.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings data on Thursday, May 1st. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.02 by $0.11. The company had revenue of $392.36 million for the quarter, compared to analyst estimates of $370.55 million. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. Reddit's quarterly revenue was up 61.5% compared to the same quarter last year. During the same period last year, the company earned ($8.19) earnings per share. On average, analysts expect that Reddit, Inc. will post 1.12 earnings per share for the current year.

Insider Activity

In related news, CAO Michelle Marie Reynolds sold 2,729 shares of the company's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $98.85, for a total transaction of $269,761.65. Following the completion of the sale, the chief accounting officer now owns 42,277 shares of the company's stock, valued at approximately $4,179,081.45. This represents a 6.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David C. Habiger purchased 774 shares of the business's stock in a transaction that occurred on Wednesday, March 12th. The stock was bought at an average cost of $130.36 per share, with a total value of $100,898.64. Following the acquisition, the director now owns 30,808 shares of the company's stock, valued at approximately $4,016,130.88. The trade was a 2.58% increase in their position. The disclosure for this purchase can be found here. Insiders have sold a total of 677,875 shares of company stock worth $76,732,994 over the last quarter.

Institutional Trading of Reddit

Several large investors have recently added to or reduced their stakes in RDDT. Signaturefd LLC grew its holdings in shares of Reddit by 3.5% in the first quarter. Signaturefd LLC now owns 2,859 shares of the company's stock valued at $300,000 after purchasing an additional 97 shares during the period. Proficio Capital Partners LLC increased its holdings in shares of Reddit by 2.1% during the 4th quarter. Proficio Capital Partners LLC now owns 5,908 shares of the company's stock worth $966,000 after buying an additional 120 shares during the last quarter. CWM LLC raised its position in shares of Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after buying an additional 128 shares during the period. Farther Finance Advisors LLC lifted its holdings in Reddit by 148.5% in the fourth quarter. Farther Finance Advisors LLC now owns 246 shares of the company's stock valued at $40,000 after acquiring an additional 147 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its position in Reddit by 12.5% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 1,323 shares of the company's stock worth $139,000 after acquiring an additional 147 shares during the period.

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.