Reddit (NYSE:RDDT) Shares Gap Down After Insider Selling

Reddit Inc. (NYSE:RDDT)’s share price gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $213.63, but opened at $203.14. Reddit shares last traded at $196.1060, with a volume of 2,123,760 shares trading hands.

Specifically, CTO Christopher Brian Slowe sold 14,000 shares of the business’s stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $212.61, for a total value of $2,976,540.00. Following the transaction, the chief technology officer directly owned 167,694 shares of the company’s stock, valued at approximately $35,653,421.34. The trade was a 7.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Jennifer L. Wong sold 12,008 shares of the stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total transaction of $2,710,565.84. Following the completion of the sale, the chief operating officer owned 50,124 shares of the company’s stock, valued at approximately $11,314,490.52. This represents a 19.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In other news, COO Jennifer L. Wong sold 27,159 shares of the stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total value of $6,130,601.07. Following the sale, the chief operating officer directly owned 1,157,369 shares of the company’s stock, valued at approximately $261,252,904.37. This represents a 2.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $250.00 target price (up from $225.00) on shares of Reddit in a research report on Monday, October 20th. Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. Bank of America raised their target price on shares of Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a research note on Friday, October 31st. Roth Mkm set a $210.00 target price on Reddit in a report on Friday, October 31st. Finally, Truist Financial set a $270.00 target price on Reddit in a research report on Friday, October 31st. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $245.18.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Deutsche Bank and other brokers raised price targets and maintained buy ratings, signaling continued analyst conviction in Reddit’s 2026 growth case. Deutsche Bank Raises Reddit PT to $285
• Positive Sentiment: Recent results show strong revenue acceleration and margin improvement (Q3 revenue +67.9% y/y; EPS beat), supporting longer-term upside despite volatility. MarketBeat Stock Profile
• Neutral Sentiment: Several articles outline why Reddit could be an attractive multi-year investment, but they mostly restate growth thesis rather than new catalysts. What Makes Reddit an Attractive Investment Bet?
• Neutral Sentiment: Reddit’s legal move to restrict use of the “WallStreetBets” name at a Miami event drew attention to trademark enforcement — possible reputational noise but unclear financial impact. Reddit Lawyers Force Founder to Redact “WallStreetBets”
• Negative Sentiment: An analyst note warning of slowing growth in 2026 triggered downwards pressure; media reported a ~9% drop after the warning. This is the clearest proximate cause of today’s pullback. Reddit stock tumbles 9% as analyst warns of slowing growth
• Negative Sentiment: Reports that YouTube has become a primary social source for AI-model training and content discovery raise competitive and content-sourcing concerns that could affect engagement and ad monetization. Reddit stock is tumbling and YouTube may be to blame
• Negative Sentiment: CTO Christopher Slowe sold 14,000 shares (recent insider selling series), which can weigh on investor sentiment even though insiders still hold large positions. CTO Insider Sale SEC Filing
• Negative Sentiment: Market commentary and data outlets flagged the same-day drop and higher-than-average trading volume, reinforcing the negative tone. Zacks: Stock Drops Despite Market Gains

Reddit Stock Performance

The stock has a market capitalization of $37.20 billion, a PE ratio of 112.80, a P/E/G ratio of 1.48 and a beta of 2.17. The company’s fifty day simple moving average is $226.21 and its two-hundred day simple moving average is $214.33.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.30. The business had revenue of $584.91 million during the quarter, compared to analyst estimates of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The business’s revenue was up 67.9% on a year-over-year basis. During the same period last year, the business earned $0.16 EPS. Sell-side analysts forecast that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of RDDT. Norges Bank bought a new position in shares of Reddit in the second quarter valued at about $294,254,000. Vanguard Group Inc. increased its holdings in shares of Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after acquiring an additional 1,401,293 shares in the last quarter. Amundi boosted its holdings in shares of Reddit by 2,060.5% in the second quarter. Amundi now owns 1,307,231 shares of the company’s stock valued at $208,294,000 after buying an additional 1,246,725 shares during the period. Invesco Ltd. raised its stake in shares of Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after purchasing an additional 1,201,237 shares during the period. Finally, State Street Corp lifted its stake in Reddit by 138.5% in the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company’s stock valued at $305,678,000 after acquiring an additional 1,178,890 shares in the last quarter.

About Reddit

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.