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

Shares of Reddit Inc. (NYSE:RDDT) were down 8.2% on Thursday following insider selling activity. The company traded as low as $128.11 and last traded at $128.23. Approximately 2,432,877 shares changed hands during trading, a decline of 56% from the average daily 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 that occurred 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 transaction, the chief technology officer 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Jennifer L. Wong sold 5,658 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 36,000 shares of the company’s stock, valued at $5,163,120. This represents a 13.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In related news, COO Jennifer L. Wong sold 33,507 shares of Reddit 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 completion of the sale, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at approximately $156,094,757.91. The trade was a 2.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analysts Set New Price Targets

RDDT has been the topic of several analyst reports. UBS Group set a $265.00 target price on Reddit in a report on Tuesday, January 13th. Cantor Fitzgerald decreased their price target on Reddit from $240.00 to $170.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. The Goldman Sachs Group lowered their price objective on Reddit from $236.00 to $206.00 and set a “neutral” rating on the stock in a report on Friday, February 6th. Roth Mkm raised their price objective on Reddit from $210.00 to $215.00 and gave the company a “neutral” rating in a research note on Friday, January 30th. Finally, Needham & Company LLC restated a “buy” rating and issued a $300.00 target price on shares of Reddit in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $242.19.

Reddit Price Performance

The company has a market capitalization of $24.60 billion, a price-to-earnings ratio of 49.14, a price-to-earnings-growth ratio of 0.99 and a beta of 2.40. The business has a fifty day moving average price of $159.88 and a 200 day moving average price of $200.15.

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

Institutional Trading of Reddit

A number of hedge funds have recently modified their holdings of the company. Raiffeisen Bank International AG acquired a new position in shares of Reddit in the third quarter valued at $25,000. GW&K Investment Management LLC bought a new stake in Reddit in the 3rd quarter valued at $30,000. Cornerstone Planning Group LLC increased its holdings in Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after buying an additional 135 shares during the period. LOM Asset Management Ltd acquired a new position in shares of Reddit in the 4th quarter valued at $33,000. Finally, Noble Wealth Management PBC acquired a new position in shares of Reddit in the 4th quarter valued at $34,000.

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.