Reddit (NYSE:RDDT) Shares Gap Down – Should You Sell?

Reddit, Inc. (NYSE:RDDT) shares gapped down before the market opened on Friday . 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 changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on RDDT shares. Raymond James upped their target price on shares of Reddit from $70.00 to $80.00 and gave the company a “strong-buy” rating in a report on Thursday, October 10th. Roth Mkm raised their target price on shares of Reddit from $89.00 to $116.00 and gave the stock a “buy” rating in a research report on Wednesday, October 30th. Bank of America boosted their price target on Reddit from $84.00 to $99.00 and gave the company a “neutral” rating in a report on Wednesday, October 30th. B. Riley restated a “buy” rating and set a $112.00 price objective (up previously from $87.00) on shares of Reddit in a report on Wednesday, October 30th. Finally, Sanford C. Bernstein upped their target price on Reddit from $65.00 to $85.00 and gave the company an “underperform” rating in a research note on Wednesday, October 30th. One research analyst has rated the stock with a sell rating, six have given a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and an average price target of $91.67.

Reddit Stock Down 9.2 %

The firm’s fifty day moving average price is $90.31 and its 200-day moving average price is $70.56.

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

Insider Buying and Selling

In other Reddit news, CEO Steve Ladd Huffman sold 6,714 shares of Reddit stock in a transaction on Friday, August 30th. The shares were sold at an average price of $59.84, for a total transaction of $401,765.76. Following the completion of the sale, the chief executive officer now owns 658,352 shares of the company’s stock, valued at $39,395,783.68. This trade represents a 1.01 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, COO Jennifer L. Wong sold 33,333 shares of the company’s stock in a transaction on Monday, September 16th. The stock was sold at an average price of $59.18, for a total transaction of $1,972,646.94. Following the completion of the transaction, the chief operating officer now directly owns 1,542,457 shares in the company, valued at $91,282,605.26. This trade represents a 2.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 267,001 shares of company stock worth $21,480,202 in the last three months.

Institutional Investors Weigh In On Reddit

Several institutional investors have recently made changes to their positions in RDDT. BNP Paribas Financial Markets acquired a new position in Reddit in the 1st quarter valued at $37,000. Whittier Trust Co. acquired a new stake in shares of Reddit in the third quarter valued at about $42,000. SOA Wealth Advisors LLC. bought a new position in shares of Reddit in the second quarter worth about $78,000. Sandia Investment Management LP acquired a new position in shares of Reddit during the 1st quarter worth about $79,000. Finally, Daiwa Securities Group Inc. bought a new stake in Reddit during the 3rd quarter valued at approximately $85,000.

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.