Steve Ladd Huffman Sells 18,000 Shares of Reddit (NYSE:RDDT) Stock

Reddit Inc. (NYSE:RDDT) CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $66,598,702.24. The trade was a 4.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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, August 4th, Steve Ladd 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.
• On Tuesday, June 30th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00.
• On Monday, June 15th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $178.26, for a total transaction of $3,208,680.00.
• On Friday, May 29th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $174.13, for a total value of $3,134,340.00.

Reddit Price Performance

Shares of Reddit stock opened at $151.77 on Thursday. The stock has a market cap of $29.20 billion, a price-to-earnings ratio of 35.30, a PEG ratio of 0.53 and a beta of 2.03. The firm’s 50-day moving average is $174.35 and its 200 day moving average is $158.71. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating 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 last year, the business posted $0.45 EPS. The company’s revenue was up 61.0% compared to the same quarter last year. On average, equities analysts expect that Reddit Inc. will post 5.22 EPS for the current fiscal year.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s inclusion in the S&P 500 should improve its visibility and may create ongoing demand from index-tracking funds. Analysts remain broadly constructive, with reported average price targets above recent trading levels. Reddit Stock Falls Ahead of Joining the S&P 500
• Positive Sentiment: Reddit’s advertising business continues to be viewed as a major growth driver. Rapid ad growth and an expanding advertiser base could give the company an advantage over Meta Platforms, although RDDT carries a richer valuation. RDDT vs. META: Which Digital Advertising Stock Has an Edge Right Now?
• Neutral Sentiment: Recent commentary cautions that the S&P 500 “index effect” may be less powerful than expected because much of the buying could have occurred before the effective inclusion date. The event may therefore support visibility without producing a sustained rally. Reddit: Curb Your Enthusiasm About The Index Effect
• Neutral Sentiment: Reddit recently delivered strong quarterly results, including revenue growth of 61% year over year and earnings above consensus estimates. However, investors are now focused more on whether that growth can continue amid market concerns. RDDT Stock Dips Premarket As S&P 500 Inclusion Boost Wanes
• Negative Sentiment: Search-traffic risks are weighing on the outlook. Any decline in visits originating from search engines could reduce user growth, engagement and the inventory available for advertising. Search Traffic Risks for Reddit
• Negative Sentiment: CEO Steve Huffman sold 18,000 shares and COO Jennifer Wong sold 75,000 shares in transactions conducted under pre-arranged Rule 10b5-1 plans. The planned sales reduce their significance, but insider selling can still pressure investor sentiment. SEC filing for Jennifer Wong share sale SEC filing for Steve Huffman share sale

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares during the last quarter. Capital World Investors bought a new stake in Reddit in the fourth quarter worth $1,293,258,000. State Street Corp lifted its position in Reddit by 6.0% in the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after buying an additional 149,401 shares during the last quarter. Geode Capital Management LLC boosted its stake in Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after buying an additional 106,821 shares during the period. Finally, Morgan Stanley boosted its stake in Reddit by 11.4% during the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock worth $545,354,000 after buying an additional 242,709 shares during the period.

Analyst Upgrades and Downgrades

Several research firms have issued reports on RDDT. Sanford C. Bernstein reissued a “market perform” rating and set a $180.00 price target on shares of Reddit in a report on Friday, July 31st. Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 27th. Wedbush cut their price objective on Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. Truist Financial boosted their price objective on Reddit from $265.00 to $275.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Roth Capital reissued a “neutral” rating and issued a $145.00 target price on shares of Reddit in a report on Monday, August 3rd. Three research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Reddit has a consensus rating of “Moderate Buy” and a consensus target price of $221.71.

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.