Reddit (NYSE:RDDT) Trading Down 12.9% – Time to Sell?

Reddit, Inc. (NYSE:RDDT) fell 12.9% on Monday . The stock traded as low as $119.23 and last traded at $116.72. 2,788,790 shares changed hands during trading, a decline of 49% from the average session volume of 5,473,171 shares. The stock had previously closed at $133.98.

Analysts Set New Price Targets

Several brokerages have issued reports on RDDT. Raymond James raised their target price on Reddit from $200.00 to $250.00 and gave the stock a “strong-buy” rating in a research report on Monday, February 10th. Robert W. Baird upped their price objective on Reddit from $160.00 to $185.00 and gave the stock a “neutral” rating in a research note on Thursday, February 13th. Wells Fargo & Company lifted their target price on Reddit from $206.00 to $215.00 and gave the company an “overweight” rating in a research report on Thursday, February 13th. Needham & Company LLC upped their price target on Reddit from $190.00 to $220.00 and gave the stock a “buy” rating in a research report on Thursday, February 13th. Finally, Citigroup reiterated a “neutral” rating on shares of Reddit in a research report on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating, eleven have given a buy rating and one has issued 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 $175.95.

Reddit Trading Down 17.4 %

The company has a market capitalization of $20.01 billion and a PE ratio of -14.33. The firm’s 50-day simple moving average is $181.61 and its 200-day simple moving average is $131.51.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Wednesday, February 12th. The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. As a group, analysts anticipate that Reddit, Inc. will post 1.12 EPS for the current year.

Insider Buying and Selling

In other Reddit news, insider Benjamin Seong Lee sold 92,299 shares of the stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $157.35, for a total transaction of $14,523,247.65. Following the sale, the insider now owns 115,001 shares of the company’s stock, valued at approximately $18,095,407.35. This trade represents a 44.52 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mary Porter Gale sold 20,000 shares of the business’s stock in a transaction on Friday, February 21st. The stock was sold at an average price of $169.71, for a total value of $3,394,200.00. Following the completion of the transaction, the director now directly owns 26,309 shares of the company’s stock, valued at approximately $4,464,900.39. The trade was a 43.19 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 393,386 shares of company stock valued at $66,673,388 over the last three months.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Jennison Associates LLC purchased a new position in Reddit in the fourth quarter worth $494,861,000. Renaissance Capital LLC grew its stake in Reddit by 14.2% during the 4th quarter. Renaissance Capital LLC now owns 31,236 shares of the company’s stock worth $5,105,000 after buying an additional 3,892 shares during the last quarter. Wellington Management Group LLP increased its position in Reddit by 3,640.5% during the 3rd quarter. Wellington Management Group LLP now owns 255,325 shares of the company’s stock valued at $16,831,000 after buying an additional 248,499 shares in the last quarter. Newbridge Financial Services Group Inc. raised its stake in Reddit by 666.7% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 2,300 shares of the company’s stock valued at $376,000 after buying an additional 2,000 shares during the last quarter. Finally, Chung Wu Investment Group LLC acquired a new stake in Reddit in the fourth quarter worth about $327,000.

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.