Reddit (NYSE:RDDT) Shares Gap Up – Here’s What Happened

Reddit, Inc. (NYSE:RDDT)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $122.73, but opened at $134.79. Reddit shares last traded at $129.09, with a volume of 2,995,073 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Roth Capital lowered shares of Reddit from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 22nd. Guggenheim started coverage on shares of Reddit in a research report on Friday, December 20th. They set a “buy” rating and a $210.00 price objective on the stock. Jefferies Financial Group upped their target price on shares of Reddit from $120.00 to $175.00 and gave the stock a “buy” rating in a research note on Monday, November 25th. Piper Sandler raised their price target on shares of Reddit from $210.00 to $220.00 and gave the company an “overweight” rating in a research report on Friday, February 21st. Finally, B. Riley increased their target price on Reddit from $112.00 to $187.00 and gave the company a “buy” rating in a research note on Tuesday, January 14th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $175.95.

Reddit Trading Up 8.5 %

The firm has a market cap of $24.08 billion and a PE ratio of -17.14. The company’s 50 day moving average price is $179.61 and its two-hundred day moving average price is $132.31.

Reddit (NYSE:RDDT) last released its earnings results 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 net margin of 37.25% and a negative return on equity of 24.71%. Equities research analysts expect that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Steve Ladd Huffman sold 14,000 shares of the firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $176.20, for a total transaction of $2,466,800.00. Following the completion of the transaction, the chief executive officer now owns 620,971 shares in the company, valued at $109,415,090.20. This trade represents a 2.20 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Michelle Marie Reynolds sold 11,965 shares of the firm’s stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $157.41, for a total value of $1,883,410.65. Following the transaction, the chief accounting officer now owns 48,418 shares of the company’s stock, valued at $7,621,477.38. This represents a 19.82 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 393,386 shares of company stock worth $66,673,388 over the last ninety days.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Chartwell Investment Partners LLC lifted its position in Reddit by 80.8% during the third quarter. Chartwell Investment Partners LLC now owns 22,544 shares of the company’s stock valued at $1,486,000 after purchasing an additional 10,072 shares during the last quarter. Entropy Technologies LP purchased a new stake in Reddit during the 3rd quarter valued at $231,000. Sumitomo Mitsui Trust Group Inc. raised its holdings in Reddit by 64.9% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 512,871 shares of the company’s stock valued at $33,808,000 after buying an additional 201,776 shares during the period. Victory Capital Management Inc. lifted its position in Reddit by 903.8% in the third quarter. Victory Capital Management Inc. now owns 504,116 shares of the company’s stock worth $33,231,000 after buying an additional 453,894 shares during the last quarter. Finally, Claro Advisors LLC purchased a new position in Reddit during the third quarter worth $1,879,000.

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.