Reddit (NYSE:RDDT) Trading Down 8.2% on Insider Selling

Reddit Inc. (NYSE:RDDT)’s share price fell 8.2% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $128.11 and last traded at $128.23. 2,432,877 shares changed hands during trading, a decline of 56% from the average session volume of 5,503,202 shares. The stock had previously closed at $139.63.

Specifically, CTO Christopher Brian Slowe sold 9,500 shares of the company’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $141.28, for a total value of $1,342,160.00. Following the sale, the chief technology officer owned 38,413 shares of the company’s stock, valued at $5,426,988.64. The trade was a 19.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, COO Jennifer L. Wong sold 5,658 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $143.42, for a total transaction of $811,470.36. Following the transaction, the chief operating officer owned 36,000 shares of the company’s stock, valued at approximately $5,163,120. This represents a 13.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In other Reddit news, COO Jennifer L. Wong sold 33,507 shares of Reddit stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $143.41, for a total transaction of $4,805,238.87. Following the sale, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at approximately $156,094,757.91. The trade was a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on RDDT. Jefferies Financial Group dropped their target price on Reddit from $285.00 to $250.00 and set a “buy” rating for the company in a report on Tuesday, March 10th. Roth Mkm boosted their price target on Reddit from $210.00 to $215.00 and gave the company a “neutral” rating in a research note on Friday, January 30th. Morgan Stanley set a $240.00 price target on Reddit in a research report on Friday, February 6th. Wall Street Zen cut Reddit from a “buy” rating to a “hold” rating in a report on Monday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $285.00 target price on shares of Reddit in a research note on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat, Reddit presently has an average rating of “Moderate Buy” and a consensus target price of $242.19.

Reddit Trading Down 7.8%

The stock has a fifty day moving average of $159.88 and a two-hundred day moving average of $200.15. The stock has a market capitalization of $24.60 billion, a price-to-earnings ratio of 49.14, a PEG ratio of 0.99 and a beta of 2.40.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, February 5th. The company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. The company had revenue of $725.61 million for the quarter, compared to analyst estimates of $665.80 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The business’s revenue was up 69.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.36 earnings per share. Equities analysts expect that Reddit Inc. will post 1.12 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Purpose Unlimited Inc. bought a new stake in Reddit during the 4th quarter worth about $383,000. Rockefeller Capital Management L.P. raised its stake in shares of Reddit by 3.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 11,697 shares of the company’s stock worth $2,689,000 after acquiring an additional 340 shares during the last quarter. World Investment Advisors lifted its position in shares of Reddit by 37.4% during the fourth quarter. World Investment Advisors now owns 2,533 shares of the company’s stock worth $582,000 after purchasing an additional 689 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of Reddit by 58.5% during the fourth quarter. Corient Private Wealth LLC now owns 8,491 shares of the company’s stock worth $1,949,000 after purchasing an additional 3,134 shares in the last quarter. Finally, SHP Wealth Management bought a new stake in shares of Reddit during the fourth quarter valued at approximately $78,000.

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.