Reddit (NYSE:RDDT) Trading Down 5.2% on Insider Selling

Shares of Reddit Inc. (NYSE:RDDT) fell 5.2% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $146.05 and last traded at $146.8140. 976,414 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 5,204,628 shares. The stock had previously closed at $154.88.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $157.15, for a total value of $2,828,700.00. Following the transaction, the chief executive officer directly owned 411,195 shares of the company’s stock, valued at approximately $64,619,294.25. This trade represents a 4.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

RDDT has been the subject of several research reports. Cantor Fitzgerald boosted their price objective on Reddit from $170.00 to $180.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. Raymond James Financial set a $180.00 price target on Reddit and gave the stock a “market perform” rating in a research note on Friday, May 1st. Bank of America reduced their price objective on Reddit from $205.00 to $175.00 and set a “neutral” rating for the company in a research note on Thursday, April 2nd. Roth Mkm raised their price objective on Reddit from $210.00 to $215.00 and gave the company a “neutral” rating in a report on Friday, January 30th. Finally, Wells Fargo & Company lifted their target price on shares of Reddit from $149.00 to $176.00 and gave the stock an “equal weight” rating in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, Reddit presently has an average rating of “Moderate Buy” and a consensus target price of $228.61.

Reddit Price Performance

The stock has a market cap of $28.41 billion, a price-to-earnings ratio of 41.62 and a beta of 1.85. The firm has a fifty day moving average of $147.08 and a 200 day moving average of $180.52.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same quarter in the previous year, the company posted $0.13 earnings per share. The firm’s revenue for the quarter was up 69.1% compared to the same quarter last year. Research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Reddit

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Reddit by 8.9% during the fourth 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. Capital World Investors acquired a new stake in shares of Reddit during the 4th quarter worth approximately $1,293,258,000. State Street Corp raised its position in shares of Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after buying an additional 149,401 shares during the period. Geode Capital Management LLC raised its position in shares of Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after buying an additional 106,821 shares during the period. Finally, Morgan Stanley lifted its holdings in Reddit by 11.4% in the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after acquiring an additional 242,709 shares during the last quarter.

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.