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

Reddit Inc. (NYSE:RDDT) was down 9.1% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $154.88 and last traded at $150.3980. Approximately 791,772 shares traded hands during 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 firm’s stock in a transaction dated Friday, January 30th. The shares were sold at an average price of $183.18, for a total transaction of $3,297,240.00. Following the sale, the chief executive officer owned 448,576 shares of the company’s stock, valued at $82,170,151.68. This trade represents a 3.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Wall Street Analyst Weigh In

RDDT has been the subject of several research reports. Bank of America boosted their price objective on shares of Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a report on Friday, October 31st. B. Riley reiterated a “buy” rating and set a $245.00 price objective (up previously from $235.00) on shares of Reddit in a research report on Friday, October 31st. Truist Financial set a $270.00 target price on Reddit in a research report on Friday, October 31st. Guggenheim reiterated a “buy” rating and issued a $245.00 price objective on shares of Reddit in a research note on Friday, January 23rd. Finally, Wells Fargo & Company increased their price target 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 research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Reddit presently has an average rating of “Moderate Buy” and an average target price of $245.36.

Reddit Trading Down 8.2%

The stock has a 50 day simple moving average of $224.97 and a 200-day simple moving average of $215.59. The firm has a market cap of $28.76 billion, a PE ratio of 87.79, a price-to-earnings-growth ratio of 1.23 and a beta of 2.17.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. State Street Corp lifted its position in shares of Reddit by 22.3% in the third quarter. State Street Corp now owns 2,481,931 shares of the company’s stock worth $570,819,000 after buying an additional 451,792 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in Reddit by 7.5% during the second quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company’s stock valued at $308,846,000 after buying an additional 143,680 shares during the last quarter. Geode Capital Management LLC grew its holdings in Reddit by 72.1% during the 2nd quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company’s stock valued at $299,044,000 after buying an additional 833,245 shares in the last quarter. Finally, Norges Bank bought a new stake in Reddit in the 2nd quarter worth approximately $294,254,000.

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.