Reddit (NYSE:RDDT) Shares Down 4.4% Following Insider Selling

Reddit Inc. (NYSE:RDDT) traded down 4.4% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $214.40 and last traded at $215.3530. 923,015 shares traded hands during trading, a decline of 78% from the average session volume of 4,249,428 shares. The stock had previously closed at $225.36.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $232.78, for a total value of $4,190,040.00. Following the completion of the transaction, the chief executive officer directly owned 448,576 shares of the company’s stock, valued at $104,419,521.28. This trade represents a 3.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on RDDT shares. Piper Sandler reiterated an “overweight” rating on shares of Reddit in a research report on Monday, December 1st. JMP Securities restated a “market outperform” rating and issued a $300.00 target price on shares of Reddit in a research note on Friday, October 3rd. Cantor Fitzgerald initiated coverage on Reddit in a research report on Thursday, January 8th. They set a “neutral” rating and a $240.00 price target for the company. Royal Bank Of Canada reissued a “sector perform” rating on shares of Reddit in a report on Wednesday, October 1st. Finally, Wells Fargo & Company upped their price objective on shares of Reddit from $186.00 to $207.00 and gave the stock an “equal weight” rating in a research report on Monday, January 12th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Reddit has an average rating of “Moderate Buy” and a consensus target price of $244.11.

Reddit Price Performance

The company has a 50 day simple moving average of $224.45 and a 200-day simple moving average of $212.07. The firm has a market cap of $39.82 billion, a PE ratio of 120.77, a price-to-earnings-growth ratio of 1.51 and a beta of 2.17.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, October 30th. The company reported $0.80 EPS for the quarter, topping the consensus estimate of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The firm had revenue of $584.91 million for the quarter, compared to the consensus estimate of $546.65 million. During the same period last year, the firm posted $0.16 earnings per share. The business’s revenue was up 67.9% compared to the same quarter last year. On average, sell-side analysts predict that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Institutional Trading of Reddit

Several institutional investors have recently added to or reduced their stakes in the business. Raiffeisen Bank International AG purchased a new position in shares of Reddit in the third quarter worth about $25,000. GW&K Investment Management LLC purchased a new position in Reddit in the 3rd quarter worth approximately $30,000. Cornerstone Planning Group LLC increased its stake in Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after purchasing an additional 135 shares during the period. Financial Perspectives Inc bought a new stake in Reddit in the second quarter valued at approximately $34,000. Finally, Noble Wealth Management PBC purchased a new stake in shares of Reddit during the fourth quarter valued at approximately $34,000.

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.