Reddit (NYSE:RDDT) Trading Down 4.4% After Insider Selling

Reddit Inc. (NYSE:RDDT) shares traded down 4.4% during mid-day trading on Thursday following insider selling activity. The stock traded as low as $150.67 and last traded at $150.6380. 981,803 shares were traded during trading, a decline of 82% from the average session volume of 5,420,681 shares. The stock had previously closed at $157.60.

Specifically, COO Jennifer Wong sold 60,000 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $162.33, for a total transaction of $9,739,800.00. Following the transaction, the chief operating officer directly owned 1,012,226 shares of the company’s stock, valued at approximately $164,314,646.58. This trade represents a 5.60% decrease in their ownership of the stock. The transaction was disclosed in a legal 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.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on RDDT shares. Needham & Company LLC reissued a “buy” rating and issued a $300.00 price objective on shares of Reddit in a report on Wednesday, June 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Reddit in a report on Wednesday, August 5th. Robert W. Baird set a $185.00 price target on shares of Reddit in a research report on Friday, July 31st. Wedbush cut their price target on Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. Finally, Cantor Fitzgerald cut their price target on Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research note on Friday, July 31st. Two investment analysts have 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.com, Reddit presently has an average rating of “Moderate Buy” and a consensus target price of $221.10.

Reddit Trading Down 3.8%

The firm’s 50-day moving average price is $164.84 and its 200 day moving average price is $159.46. The company has a market capitalization of $29.16 billion, a price-to-earnings ratio of 35.25, a PEG ratio of 0.74 and a beta of 2.02.

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

Institutional Investors Weigh In On Reddit

A number of large investors have recently modified their holdings of the business. Evansbrook LLC lifted its holdings in Reddit by 2.2% during the first 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 last quarter. Signaturefd LLC boosted its position in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock worth $152,000 after purchasing an additional 62 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after purchasing an additional 64 shares in the last quarter. Florida Financial Advisors LLC increased its stake in shares of Reddit by 6.7% in the fourth quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company’s stock worth $250,000 after purchasing an additional 68 shares in the last quarter. Finally, Diversified Trust Co raised its position in shares of Reddit by 2.1% in the first quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock valued at $440,000 after purchasing an additional 68 shares during the period.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.