Reddit (NYSE:RDDT) COO Jennifer Wong Sells 60,000 Shares of Company Stock

Reddit Inc. (NYSE:RDDT) COO Jennifer Wong sold 60,000 shares of Reddit stock in a transaction on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total value of $9,033,000.00. Following the completion of the transaction, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at approximately $152,390,624.30. The trade was a 5.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Reddit Stock Performance

Reddit stock traded down $3.39 on Friday, reaching $155.97. The company’s stock had a trading volume of 3,835,703 shares, compared to its average volume of 4,740,878. The business’s fifty day moving average price is $154.22 and its 200 day moving average price is $161.39. The company has a market cap of $30.01 billion, a price-to-earnings ratio of 36.27, a PEG ratio of 0.74 and a beta of 2.05. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $263.50.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company had revenue of $804.91 million during the quarter, compared to analyst estimates of $731.00 million. During the same period last year, the company posted $0.45 earnings per share. The firm’s quarterly revenue was up 61.0% compared to the same quarter last year. As a group, equities analysts forecast that Reddit Inc. will post 5.27 earnings per share for the current year.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: CNBC’s Jim Cramer recommended buying Reddit, describing the shares as “inexpensive.” The endorsement could improve retail-investor sentiment and draw attention to Reddit’s valuation. Jim Cramer recommends Reddit
• Neutral Sentiment: Reddit will report third-quarter results on Thursday, October 29. Investors are likely to focus on advertising growth, user trends and management’s outlook following the company’s previous quarterly revenue increase of 61% year over year. Reddit third-quarter earnings announcement
• Neutral Sentiment: Goldman Sachs maintained its Hold rating on RDDT, indicating that the firm does not see a sufficiently compelling risk-reward profile at current levels. Goldman Sachs maintains Hold rating
• Negative Sentiment: CEO Steve Huffman sold 17,308 shares for approximately $2.74 million, reducing his direct holdings by 4.89%. COO Jennifer Wong separately sold 60,000 shares for about $9.03 million, reducing her position by 5.60%. Both transactions were made under pre-arranged Rule 10b5-1 plans, which lessens—but does not eliminate—the negative signaling effect of insider selling. Reddit insider sales

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. DA Davidson decreased their price objective on shares of Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a report on Friday, September 18th. KeyCorp assumed coverage on shares of Reddit in a research note on Wednesday, July 29th. They issued an “overweight” rating and a $225.00 target price for the company. Morgan Stanley reduced their target price on shares of Reddit from $240.00 to $210.00 and set an “overweight” rating on the stock in a research report on Friday, August 21st. Robert W. Baird set a $185.00 price target on shares of Reddit in a research note on Friday, July 31st. Finally, Sanford C. Bernstein reissued a “market perform” rating and set a $180.00 price target on shares of Reddit in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, Reddit presently has an average rating of “Moderate Buy” and a consensus target price of $219.29.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Evansbrook LLC lifted its position in Reddit by 2.2% during the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock valued at $368,000 after purchasing an additional 59 shares during the period. Signaturefd LLC boosted its stake in shares of Reddit by 7.6% in the 2nd quarter. Signaturefd LLC now owns 878 shares of the company’s stock valued at $152,000 after purchasing an additional 62 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares during the period. Diversified Trust Co grew its position in shares of Reddit by 2.1% during the 1st quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock worth $440,000 after buying an additional 68 shares during the period. Finally, Versant Capital Management Inc raised its stake in shares of Reddit by 31.1% during the second quarter. Versant Capital Management Inc now owns 291 shares of the company’s stock worth $51,000 after buying an additional 69 shares during the last quarter.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.