Reddit (NYSE:RDDT) Trading Down 5.1% – Here’s What Happened

Shares of Reddit, Inc. (NYSE:RDDT) traded down 5.1% on Tuesday . The company traded as low as $167.32 and last traded at $169.10. 3,473,241 shares changed hands during trading, a decline of 33% from the average session volume of 5,149,702 shares. The stock had previously closed at $178.10.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. The Goldman Sachs Group upped their price objective on shares of Reddit from $60.00 to $68.00 and gave the stock a “neutral” rating in a report on Monday, October 14th. Citigroup boosted their price objective on shares of Reddit from $70.00 to $120.00 and gave the stock a “buy” rating in a report on Wednesday, October 30th. Needham & Company LLC lifted their target price on Reddit from $120.00 to $190.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th. B. Riley restated a “buy” rating and issued a $112.00 price target (up previously from $87.00) on shares of Reddit in a research note on Wednesday, October 30th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $150.00 price objective (up from $115.00) on shares of Reddit in a research report on Tuesday, November 19th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $124.42.

Reddit Stock Performance

The company has a 50-day simple moving average of $120.15 and a 200-day simple moving average of $82.44.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Tuesday, October 29th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.23. The firm had revenue of $348.40 million during the quarter, compared to analyst estimates of $313.61 million. Reddit had a negative return on equity of 40.54% and a negative net margin of 47.83%. The company’s revenue was up 67.9% compared to the same quarter last year. As a group, equities research analysts forecast that Reddit, Inc. will post -3.46 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CTO Christopher Brian Slowe sold 5,000 shares of the business’s stock in a transaction dated Tuesday, October 22nd. The stock was sold at an average price of $77.48, for a total transaction of $387,400.00. Following the sale, the chief technology officer now owns 30,068 shares in the company, valued at approximately $2,329,668.64. The trade was a 14.26 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Jennifer L. Wong sold 50,000 shares of Reddit stock in a transaction that occurred on Thursday, September 19th. The stock was sold at an average price of $65.01, for a total transaction of $3,250,500.00. Following the completion of the sale, the chief operating officer now owns 1,542,457 shares of the company’s stock, valued at $100,275,129.57. This trade represents a 3.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 278,311 shares of company stock worth $28,394,483 in the last three months.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RDDT. Whittier Trust Co. acquired a new position in shares of Reddit during the third quarter valued at approximately $42,000. Daiwa Securities Group Inc. purchased a new position in Reddit in the 3rd quarter valued at $85,000. UMB Bank n.a. acquired a new stake in Reddit during the 2nd quarter worth $88,000. SOA Wealth Advisors LLC. boosted its stake in Reddit by 56.3% during the 3rd quarter. SOA Wealth Advisors LLC. now owns 1,919 shares of the company’s stock worth $126,000 after purchasing an additional 691 shares during the last quarter. Finally, Sanctuary Advisors LLC acquired a new stake in shares of Reddit in the third quarter valued at about $144,000.

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.