Reddit (NYSE:RDDT) Shares Gap Up - What's Next?

Reddit, Inc. (NYSE:RDDT - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $112.25, but opened at $115.03. Reddit shares last traded at $118.44, with a volume of 1,413,119 shares traded.

Analysts Set New Price Targets

Several research firms have weighed in on RDDT. Redburn Partners set a $75.00 price objective on Reddit in a research report on Monday, March 17th. The Goldman Sachs Group reduced their target price on shares of Reddit from $185.00 to $124.00 and set a "neutral" rating on the stock in a report on Monday, April 14th. B. Riley increased their price objective on shares of Reddit from $112.00 to $187.00 and gave the stock a "buy" rating in a research report on Tuesday, January 14th. Piper Sandler reduced their price target on shares of Reddit from $220.00 to $140.00 and set an "overweight" rating for the company in a report on Thursday, April 10th. Finally, Truist Financial started coverage on shares of Reddit in a research report on Monday, April 7th. They set a "buy" rating and a $150.00 target price for the company. Two analysts have rated the stock with a sell rating, seven have given a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $142.22.

Reddit Stock Performance

The stock has a 50-day moving average of $119.68 and a 200 day moving average of $142.84. The firm has a market capitalization of $20.60 billion and a P/E ratio of -14.73.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Wednesday, February 12th. The company reported $0.36 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. On average, equities analysts predict that Reddit, Inc. will post 1.12 EPS for the current year.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the company's stock in a transaction on Friday, January 31st. The shares were sold at an average price of $201.96, for a total value of $2,827,440.00. Following the completion of the sale, the chief executive officer now owns 614,394 shares in the company, valued at $124,083,012.24. This represents a 2.23 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, COO Jennifer L. Wong sold 33,334 shares of Reddit stock in a transaction that occurred on Wednesday, April 16th. The stock was sold at an average price of $93.99, for a total transaction of $3,133,062.66. Following the transaction, the chief operating officer now directly owns 1,466,119 shares in the company, valued at approximately $137,800,524.81. This represents a 2.22 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 725,270 shares of company stock worth $97,067,425.

Hedge Funds Weigh In On Reddit

Several hedge funds have recently made changes to their positions in the stock. Nisa Investment Advisors LLC purchased a new position in shares of Reddit during the first quarter worth about $1,000,000. DekaBank Deutsche Girozentrale boosted its position in Reddit by 5.3% during the first quarter. DekaBank Deutsche Girozentrale now owns 149,300 shares of the company's stock valued at $15,662,000 after buying an additional 7,500 shares during the period. Dupree Financial Group LLC purchased a new position in shares of Reddit in the first quarter worth about $1,471,000. TD Private Client Wealth LLC boosted its holdings in Reddit by 100.3% during the 1st quarter. TD Private Client Wealth LLC now owns 1,594 shares of the company's stock valued at $167,000 after acquiring an additional 798 shares during the period. Finally, Penserra Capital Management LLC increased its stake in Reddit by 27.7% in the 1st quarter. Penserra Capital Management LLC now owns 34,248 shares of the company's stock worth $3,592,000 after purchasing an additional 7,439 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.