Reddit (NYSE:RDDT) Stock: Insider Steve Ladd Huffman Sells 17,308 Shares

Reddit Inc. (NYSE:RDDT) CEO Steve Huffman sold 17,308 shares of the business’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value of $2,744,529.56. Following the transaction, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at $53,348,022.24. This represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Steve Ladd Huffman also recently made the following trade(s):

• On Tuesday, September 29th, Steve Huffman sold 17,308 shares of Reddit stock. The shares were sold at an average price of $144.87, for a total transaction of $2,507,409.96.
• On Tuesday, September 15th, Steve Huffman sold 17,308 shares of Reddit stock. The stock was sold at an average price of $160.11, for a total value of $2,771,183.88.
• On Monday, August 31st, Steve Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $148.02, for a total value of $2,664,360.00.
• On Friday, August 14th, Steve Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00.
• On Tuesday, August 4th, Steve Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $159.78, for a total value of $2,876,040.00.

Reddit Stock Performance

RDDT opened at $155.97 on Friday. The firm 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. The firm’s 50-day simple moving average is $154.22 and its 200-day simple moving average is $161.39.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The business had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. During the same period in the previous year, the business earned $0.45 EPS. Reddit’s revenue was up 61.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Reddit Inc. will post 5.27 EPS for the current fiscal year.

Reddit News Roundup

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

Several brokerages have commented on RDDT. BNP Paribas Exane initiated coverage on shares of Reddit in a research report on Friday, September 18th. They set a “neutral” rating and a $180.00 target price for the company. Jefferies Financial Group set a $250.00 price objective on shares of Reddit in a research report on Friday, July 10th. JPMorgan Chase & Co. lowered their price target on Reddit from $200.00 to $185.00 and set a “neutral” rating for the company in a report on Friday, July 31st. Roth Capital restated a “neutral” rating and set a $145.00 target price on shares of Reddit in a report on Monday, August 3rd. Finally, UBS Group reaffirmed a “buy” rating on shares of Reddit in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $219.29.

Institutional Investors Weigh In On Reddit

A number of hedge funds have recently made changes to their positions in the stock. Sunbelt Securities Inc. raised its holdings in Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares during the last quarter. Ascentis Independent Advisors bought a new position in Reddit during the 1st quarter worth approximately $30,000. EverSource Wealth Advisors LLC boosted its stake in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. bought a new position in Reddit during the second quarter worth $35,000. Finally, V Square Quantitative Management LLC acquired a new position in Reddit in the first quarter valued at $43,000.

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.