Reddit (NYSE:RDDT) Shares Down 6.1% – Here’s Why

Shares of Reddit Inc. (NYSE:RDDT) fell 6.1% on Friday . The company traded as low as $161.37 and last traded at $162.6360. 600,592 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 5,258,709 shares. The stock had previously closed at $173.26.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on RDDT. Raymond James Financial set a $180.00 price objective on Reddit and gave the stock a “market perform” rating in a research report on Friday, May 1st. Piper Sandler reiterated an “overweight” rating and issued a $215.00 price objective (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Oppenheimer reiterated an “outperform” rating and issued a $225.00 price objective on shares of Reddit in a research report on Friday, May 1st. DA Davidson restated a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Reddit in a research report on Friday, May 8th. Eighteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $230.75.

Reddit Price Performance

The company has a 50 day moving average price of $156.87 and a two-hundred day moving average price of $176.99. The stock has a market cap of $31.51 billion, a PE ratio of 46.46 and a beta of 1.91.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.39. The company had revenue of $663.41 million during the quarter, compared to analysts’ expectations of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.Reddit’s revenue for the quarter was up 69.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.13 earnings per share. As a group, equities analysts predict that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Activity at Reddit

In other news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total value of $6,324,295.49. Following the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $175,752,182.97. This represents a 3.47% decrease in their ownership of the stock. 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. Also, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total value of $2,335,385.00. Following the completion of the sale, the chief technology officer owned 38,413 shares in the company, valued at approximately $5,787,686.71. The trade was a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 232,499 shares of company stock valued at $36,123,803. Insiders own 28.48% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in shares of Reddit by 12.9% during the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the last quarter. Truist Financial Corp increased its stake in shares of Reddit by 67.7% in the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after purchasing an additional 6,321 shares during the period. Swiss Life Asset Management Ltd increased its stake in shares of Reddit by 63.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after purchasing an additional 12,398 shares during the period. WT Asset Management Ltd acquired a new stake in shares of Reddit in the third quarter valued at approximately $92,973,000. Finally, Calamos Advisors LLC bought a new position in shares of Reddit in the fourth quarter valued at approximately $2,299,000.

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.