Reddit (NYSE:RDDT) Shares Gap Down After Analyst Downgrade

Reddit, Inc. (NYSE:RDDT) shares gapped down prior to trading on Thursday after Piper Sandler lowered their price target on the stock from $220.00 to $140.00. The stock had previously closed at $110.86, but opened at $103.98. Piper Sandler currently has an overweight rating on the stock. Reddit shares last traded at $101.16, with a volume of 2,653,374 shares trading hands.

A number of other brokerages have also recently commented on RDDT. Roth Mkm cut Reddit from a “buy” rating to a “neutral” rating and upped their price target for the company from $116.00 to $195.00 in a research note on Wednesday, January 22nd. The Goldman Sachs Group lifted their price target on shares of Reddit from $105.00 to $176.00 and gave the company a “neutral” rating in a research note on Tuesday, January 14th. Morgan Stanley raised their target price on shares of Reddit from $200.00 to $210.00 and gave the company an “overweight” rating in a research note on Thursday, February 13th. Citigroup reissued an “outperform” rating on shares of Reddit in a report on Friday, March 28th. Finally, Roth Capital cut Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $151.73.

Insider Activity at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 14,000 shares of the business’s stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $172.79, for a total transaction of $2,419,060.00. Following the completion of the sale, the chief executive officer now directly owns 614,394 shares of the company’s stock, valued at approximately $106,161,139.26. The trade was a 2.23 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Jennifer L. Wong sold 33,333 shares of Reddit stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $187.72, for a total value of $6,257,270.76. Following the transaction, the chief operating officer now directly owns 1,504,297 shares in the company, valued at approximately $282,386,632.84. The trade was a 2.17 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 603,794 shares of company stock valued at $89,386,704 in the last three months.

Hedge Funds Weigh In On Reddit

Several hedge funds have recently modified their holdings of the company. Plato Investment Management Ltd bought a new stake in Reddit during the fourth quarter worth $27,000. EverSource Wealth Advisors LLC bought a new position in Reddit during the fourth quarter valued at about $28,000. Ridgewood Investments LLC grew its position in Reddit by 100.0% during the fourth quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after buying an additional 100 shares during the period. Farmers & Merchants Investments Inc. purchased a new stake in Reddit during the fourth quarter worth about $33,000. Finally, Bogart Wealth LLC purchased a new stake in shares of Reddit during the 4th quarter worth approximately $33,000.

Reddit Trading Down 8.4 %

The business’s fifty day moving average is $148.19 and its 200 day moving average is $139.38. The company has a market cap of $18.36 billion and a P/E ratio of -13.09.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Wednesday, February 12th. The company reported $0.36 earnings per share 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, research analysts expect that Reddit, Inc. will post 1.12 EPS for the current fiscal year.

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.