Reddit (NYSE:RDDT) Stock Price Down 9.1% on Insider Selling

Shares of Reddit Inc. (NYSE:RDDT) were down 9.1% during trading on Wednesday following insider selling activity. The company traded as low as $154.88 and last traded at $150.3980. Approximately 791,772 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 4,364,304 shares. The stock had previously closed at $165.41.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction on Friday, January 30th. The stock was sold at an average price of $183.18, for a total transaction of $3,297,240.00. Following the transaction, the chief executive officer directly owned 448,576 shares of the company’s stock, valued at $82,170,151.68. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on RDDT. Cantor Fitzgerald assumed coverage on Reddit in a research report on Thursday, January 8th. They issued a “neutral” rating and a $240.00 target price for the company. Roth Mkm lifted their price target on shares of Reddit from $210.00 to $215.00 and gave the stock a “neutral” rating in a research note on Friday, January 30th. JPMorgan Chase & Co. boosted their price objective on shares of Reddit from $190.00 to $227.00 and gave the company a “neutral” rating in a report on Friday, October 31st. The Goldman Sachs Group restated a “neutral” rating and set a $236.00 price objective on shares of Reddit in a research report on Tuesday, October 14th. Finally, Raymond James Financial reaffirmed a “strong-buy” rating and issued a $250.00 target price (up previously from $225.00) on shares of Reddit in a research report on Monday, October 20th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $245.36.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Analysts and coverage highlight Reddit’s AI and ad-data initiatives as potential drivers of scalable ad revenue and better ad targeting — a structural positive for monetization if execution continues. Is Reddit’s (RDDT) Ad Data Strategy Quietly Redefining Its Path to Profitable Scale?
• Positive Sentiment: Coverage on Reddit’s role in AI/data and brand-control discussions underscores potential long-term upside from unique first-party community data, which could support higher ad yield. Reddit Juggles AI Data Role Brand Control And Advertising Pressures
• Positive Sentiment: High-profile bullish commentary (e.g., Jim Cramer) may support short-term buying interest among retail investors. Jim Cramer on Reddit: “I bet it’s up this time”
• Neutral Sentiment: Pre-earnings previews expect Q4 strength from ad growth and AI products, but emphasize that execution and monetization cadence will determine whether results beat elevated expectations. Reddit (RDDT) Q4 Earnings: What To Expect
• Neutral Sentiment: Analyst notes (Zacks, others) highlight ad/AI upside but caution on valuation; consensus remains a moderate buy with a wide range of price targets—so earnings and guidance will likely move the tape. Should You Buy, Sell, or Hold Reddit Stock Before Q4 Earnings Release?
• Negative Sentiment: Recent insider selling by CEO Steve Huffman (18,000 shares, ~$3.3M) is being cited as a catalyst for today’s pullback; investors often view repeated CEO sales as a near-term negative signal even when filings show substantial remaining ownership. SEC Form 4 – Huffman Insider Sale
• Negative Sentiment: News and trade reports note an extended pullback into lower price levels ahead of earnings; elevated volatility and the stock trading well below short- and medium-term moving averages amplify downside risk if guidance disappoints. Reddit Stock Extends Pullback Ahead of Earnings
• Negative Sentiment: Aggregate analyst actions include downgrades to hold and reminders about the stock’s high valuation — a headwind if revenue growth or margin progress lags. Why Reddit (RDDT) shares are trading lower today

Reddit Trading Down 7.8%

The company’s 50 day moving average price is $223.87 and its two-hundred day moving average price is $215.15. The firm has a market cap of $28.90 billion, a PE ratio of 87.66, a PEG ratio of 1.15 and a beta of 2.17.

Hedge Funds Weigh In On Reddit

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