Reddit (NYSE:RDDT) Trading Down 4.4% After Insider Selling

Reddit Inc. (NYSE:RDDT)’s stock price was down 4.4% on Wednesday after an insider sold shares in the company. The company traded as low as $214.40 and last traded at $215.3530. Approximately 923,015 shares traded hands during mid-day trading, a decline of 78% from the average daily 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 company’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $232.78, for a total transaction of $4,190,040.00. Following the completion of the transaction, the chief executive officer owned 448,576 shares of the company’s stock, valued at $104,419,521.28. This represents a 3.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Sanford C. Bernstein lifted their target price on Reddit from $190.00 to $210.00 and gave the stock a “market perform” rating in a research note on Friday, October 31st. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 target price on shares of Reddit in a research report on Monday, December 29th. JMP Securities reiterated a “market outperform” rating and issued a $300.00 target price on shares of Reddit in a report on Friday, October 3rd. Piper Sandler reiterated an “overweight” rating on shares of Reddit in a research note on Monday, December 1st. Finally, Citigroup raised their price objective on shares of Reddit from $250.00 to $265.00 and gave the stock a “buy” rating in a report on Monday, November 3rd. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $240.17.

Reddit Stock Down 3.6%

The company has a 50-day simple moving average of $224.30 and a two-hundred day simple moving average of $212.08. The stock has a market cap of $41.17 billion, a P/E ratio of 124.90, a P/E/G ratio of 1.55 and a beta of 2.17.

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

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Raiffeisen Bank International AG bought a new stake in Reddit in the 3rd quarter worth about $25,000. GW&K Investment Management LLC bought a new position in Reddit in the third quarter worth approximately $30,000. Cornerstone Planning Group LLC increased its position in Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock worth $31,000 after buying an additional 135 shares in the last quarter. Noble Wealth Management PBC purchased a new stake in Reddit in the 4th quarter worth approximately $34,000. Finally, GAMMA Investing LLC increased its stake in shares of Reddit by 8,650.0% in the third quarter. GAMMA Investing LLC now owns 175 shares of the company’s stock worth $40,000 after purchasing an additional 173 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.