Reddit (NYSE:RDDT) Shares Gap Down After Insider Selling

Shares of Reddit, Inc. (NYSE:RDDT) gapped down prior to trading on Friday following insider selling activity. The stock had previously closed at $158.02, but opened at $145.41. Reddit shares last traded at $147.10, with a volume of 4,195,083 shares trading hands.

Specifically, insider Benjamin Seong Lee sold 18,519 shares of the business’s stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $146.06, for a total transaction of $2,704,885.14. Following the sale, the insider now directly owns 138,401 shares of the company’s stock, valued at $20,214,850.06. The trade was a 11.80 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CTO Christopher Brian Slowe sold 21,000 shares of Reddit stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $146.01, for a total value of $3,066,210.00. Following the completion of the sale, the chief technology officer now directly owns 297,925 shares in the company, valued at approximately $43,500,029.25. This represents a 6.58 % decrease in their position. The disclosure for this sale can be found here. In related news, COO Jennifer L. Wong sold 33,333 shares of the stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $128.13, for a total transaction of $4,270,957.29. Following the completion of the transaction, the chief operating officer now directly owns 1,542,457 shares of the company’s stock, valued at approximately $197,635,015.41. This represents a 2.12 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Wall Street Analysts Forecast Growth

A number of analysts have commented on RDDT shares. JMP Securities lifted their target price on Reddit from $84.00 to $118.00 and gave the stock a “market outperform” rating in a research note on Wednesday, October 30th. JPMorgan Chase & Co. lifted their price objective on shares of Reddit from $59.00 to $77.00 and gave the stock a “neutral” rating in a research report on Monday, October 7th. Bank of America upped their price objective on shares of Reddit from $84.00 to $99.00 and gave the company a “neutral” rating in a report on Wednesday, October 30th. Piper Sandler restated an “overweight” rating and set a $150.00 target price (up previously from $115.00) on shares of Reddit in a research note on Tuesday, November 19th. Finally, Needham & Company LLC upped their price target on shares of Reddit from $85.00 to $120.00 and gave the company a “buy” rating in a research note on Wednesday, October 30th. One investment analyst has rated the stock with a sell rating, six have given a hold rating, eleven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $91.67.

Reddit Stock Down 7.2 %

The business’s 50 day moving average price is $92.06 and its two-hundred day moving average price is $71.40.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.23. The company had revenue of $348.40 million for the quarter, compared to analysts’ expectations of $313.61 million. Reddit had a negative return on equity of 40.54% and a negative net margin of 47.83%. Reddit’s revenue for the quarter was up 67.9% on a year-over-year basis. Sell-side analysts anticipate that Reddit, Inc. will post -3.63 earnings per share for the current year.

Institutional Investors Weigh In On Reddit

Several institutional investors and hedge funds have recently made changes to their positions in the stock. FMR LLC lifted its position in shares of Reddit by 302.8% in the 3rd quarter. FMR LLC now owns 12,157,591 shares of the company’s stock worth $801,428,000 after purchasing an additional 9,139,196 shares during the period. VY Capital Management Co. Ltd. bought a new position in Reddit during the third quarter worth $474,403,000. Point72 Asset Management L.P. lifted its holdings in Reddit by 3,172.0% in the third quarter. Point72 Asset Management L.P. now owns 2,296,068 shares of the company’s stock valued at $151,357,000 after buying an additional 2,225,895 shares during the period. Holocene Advisors LP boosted its position in Reddit by 177.6% during the third quarter. Holocene Advisors LP now owns 3,005,977 shares of the company’s stock valued at $198,154,000 after acquiring an additional 1,923,109 shares during the last quarter. Finally, Vanguard Group Inc. acquired a new stake in Reddit during the 1st quarter worth about $82,167,000.

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.