Reddit (NYSE:RDDT) Trading Down 8.2% Following Insider Selling

Reddit Inc. (NYSE:RDDT) shares fell 8.2% on Thursday following insider selling activity. The stock traded as low as $128.11 and last traded at $128.23. 2,432,877 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 5,503,202 shares. The stock had previously closed at $139.63.

Specifically, CTO Christopher Brian Slowe sold 9,500 shares of the firm’s stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $141.28, for a total transaction of $1,342,160.00. Following the completion of the sale, the chief technology officer directly owned 38,413 shares of the company’s stock, valued at approximately $5,426,988.64. This trade represents a 19.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Jennifer L. Wong sold 5,658 shares of Reddit stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $143.42, for a total transaction of $811,470.36. Following the sale, the chief operating officer directly owned 36,000 shares in the company, valued at $5,163,120. This trade represents a 13.58% decrease in their position. The SEC filing for this sale provides additional information. In other Reddit news, COO Jennifer L. Wong sold 33,507 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total value of $4,805,238.87. Following the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $156,094,757.91. The trade was a 2.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website.

Wall Street Analysts Forecast Growth

RDDT has been the subject of a number of analyst reports. Robert W. Baird set a $200.00 target price on Reddit in a research note on Friday, February 6th. Piper Sandler reaffirmed an “overweight” rating and set a $205.00 target price (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price target on shares of Reddit in a research note on Friday, February 6th. UBS Group set a $265.00 price target on Reddit in a report on Tuesday, January 13th. Finally, Zacks Research lowered Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and an average price target of $242.19.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: New ad formats and AI partnerships are drawing investor attention as potential revenue drivers that could improve long-term monetization and justify valuation upside. Reddit (RDDT) Valuation Check As New Ad Formats And AI Deals Draw Investor Attention
• Positive Sentiment: Recent sessions showed the stock outperforming major indices, signaling short-term investor appetite and momentum following strong quarterly results earlier this year. Reddit Inc. (RDDT) Beats Stock Market Upswing: What Investors Need to Know
• Neutral Sentiment: Reddit is rolling out identity and age-verification tools (including optional verified profiles and potential biometric options) to curb bots and improve ad quality; the move could boost advertiser confidence but may raise user-friction and privacy debates. Reddit introduces new age and human verification measures
• Negative Sentiment: Macro and sector weakness: Nasdaq and other tech-heavy indices slipped, and broader tech selling is cited as a key reason shares are down today—heat on the sector is pressuring RDDT alongside peers. Why Reddit Shares Are Trending Lower On Thursday?
• Negative Sentiment: Insider selling: CTO Christopher Slowe has sold multiple blocks of shares recently (9,500 shares on March 23rd among others), which investors often view negatively even if filings show ongoing holdings remain material. Reddit (NYSE:RDDT) CTO Christopher Brian Slowe Sells 9,500 Shares

Reddit Trading Down 8.6%

The company has a market cap of $24.37 billion, a P/E ratio of 48.69, a P/E/G ratio of 1.02 and a beta of 2.40. The company’s 50-day moving average price is $157.86 and its two-hundred day moving average price is $199.65.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, February 5th. The company reported $1.24 EPS for the quarter, topping the consensus estimate of $0.96 by $0.28. The business had revenue of $725.61 million for the quarter, compared to analysts’ expectations of $665.80 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company’s quarterly revenue was up 69.7% compared to the same quarter last year. During the same quarter last year, the company posted $0.36 earnings per share. As a group, analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current year.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently bought and sold shares of the company. NewEdge Advisors LLC grew its position in shares of Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock worth $837,000 after acquiring an additional 4,701 shares in the last quarter. Empowered Funds LLC acquired a new stake in shares of Reddit during the 1st quarter valued at approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Reddit by 106.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock worth $22,759,000 after purchasing an additional 111,780 shares during the last quarter. Focus Partners Wealth lifted its stake in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock worth $1,073,000 after purchasing an additional 2,965 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after purchasing an additional 286 shares during the period.

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.