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

Reddit Inc. (NYSE:RDDT)’s stock price dropped 6.1% on Friday . The company traded as low as $161.37 and last traded at $162.6360. Approximately 600,592 shares traded hands during trading, a decline of 89% from the average daily volume of 5,258,709 shares. The stock had previously closed at $173.26.

Analyst Ratings Changes

A number of research firms have recently weighed in on RDDT. Bank of America cut their price target on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. Wall Street Zen lowered shares of Reddit from a “buy” rating to a “hold” rating in a research report on Sunday, May 10th. Piper Sandler restated an “overweight” rating and issued a $215.00 price target (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the stock a “market perform” rating in a research note on Friday, May 1st. Finally, Rothschild & Co Redburn set a $110.00 target price on shares of Reddit in a research note on Monday, April 27th. Eighteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $230.75.

Reddit Stock Performance

The stock has a market capitalization of $31.51 billion, a P/E ratio of 46.46 and a beta of 1.91. The firm’s fifty day simple moving average is $156.87 and its 200 day simple moving average is $176.99.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate 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%.The business’s quarterly revenue was up 69.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.13 earnings per share. Analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at $172,541,252.52. This represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $174.13, for a total value of $3,134,340.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $65,092,231.82. The trade was a 4.59% decrease in their position. 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. Insiders have sold a total of 232,499 shares of company stock valued at $36,123,803 over the last three months. 28.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Reddit

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in Reddit by 12.9% in 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 raised its stake in Reddit by 67.7% during the 4th 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 raised its stake in Reddit by 63.2% during the 4th 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 bought a new stake in Reddit in the 3rd quarter worth approximately $92,973,000. Finally, Calamos Advisors LLC bought a new stake in Reddit in the 4th quarter worth approximately $2,299,000.

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.