Reddit (NYSE:RDDT) Shares Down 4.1% – Time to Sell?

Reddit Inc. (NYSE:RDDT) traded down 4.1% during mid-day trading on Wednesday . The company traded as low as $190.80 and last traded at $194.8980. 480,315 shares changed hands during mid-day trading, a decline of 91% from the average daily volume of 5,099,776 shares. The stock had previously closed at $203.27.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Bank of America dropped their target price on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating for the company in a report on Thursday, April 2nd. Cantor Fitzgerald boosted their price objective on Reddit from $170.00 to $180.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Zacks Research cut Reddit from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 3rd. Citizens Jmp lowered their price target on Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a report on Friday, May 1st. Finally, Rothschild & Co Redburn set a $110.00 price target on Reddit in a research note on Monday, April 27th. Eighteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $231.14.

Reddit Trading Down 1.3%

The business’s 50 day simple moving average is $171.18 and its 200 day simple moving average is $170.15. The firm has a market capitalization of $38.63 billion, a PE ratio of 57.33 and a beta of 1.93.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.39. The firm had revenue of $663.41 million during the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company’s quarterly revenue was up 69.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.13 EPS. Analysts forecast that Reddit Inc. will post 4.83 earnings per share for the current year.

Insider Activity at Reddit

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares of the company’s stock, valued at $3,012,000. This represents a 5.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $175,752,182.97. This represents a 3.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 208,308 shares of company stock worth $35,005,140 in the last quarter. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Truist Financial Corp boosted its stake in shares of Reddit by 67.7% during the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after purchasing an additional 6,321 shares in the last quarter. Swiss Life Asset Management Ltd increased its holdings in shares of Reddit by 63.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after acquiring an additional 12,398 shares during the period. Calamos Advisors LLC purchased a new stake in shares of Reddit during the 4th quarter worth $2,299,000. Handelsbanken Fonder AB boosted its position in Reddit by 22.9% during the fourth quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company’s stock valued at $8,505,000 after purchasing an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. grew its stake in Reddit by 326,400.0% in the fourth quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company’s stock valued at $7,505,000 after purchasing an additional 32,640 shares during the last quarter.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.