Insider Selling: Reddit (NYSE:RDDT) Director Sells $384,000.00 in Stock

Reddit Inc. (NYSE:RDDT) Director Mary Gale sold 4,000 shares of Reddit stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $96.00, for a total value of $384,000.00. Following the completion of the sale, the director directly owned 11,181 shares in the company, valued at $1,073,376. This trade represents a 26.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink.

Mary Porter Gale also recently made the following trade(s):

• On Tuesday, November 3rd, Mary Gale sold 3,000 shares of Reddit stock. The stock was sold at an average price of $96.00, for a total value of $288,000.00.

Reddit Trading Down 5.8%

Shares of Reddit stock opened at $99.52 on Friday. The stock has a 50 day moving average of $140.41 and a 200 day moving average of $154.40. Reddit Inc. has a 12 month low of $89.28 and a 12 month high of $263.50. The firm has a market cap of $19.22 billion, a PE ratio of 21.56, a PEG ratio of 0.43 and a beta of 2.28.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same quarter last year, the business posted $0.80 EPS. The firm’s revenue for the quarter was up 53.0% compared to the same quarter last year. As a group, equities research analysts forecast that Reddit Inc. will post 5.42 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Bank of America reissued a “neutral” rating and issued a $135.00 target price (down from $190.00) on shares of Reddit in a report on Friday, October 30th. Wells Fargo & Company decreased their price target on shares of Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a research note on Friday, October 30th. Citigroup lowered shares of Reddit from a “market outperform” rating to a “market perform” rating in a research report on Friday, October 30th. President Capital dropped their price objective on shares of Reddit from $207.00 to $199.00 and set a “buy” rating for the company in a research note on Thursday, September 17th. Finally, Citizens Jmp cut shares of Reddit from a “market outperform” rating to a “market perform” rating in a research note on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and fifteen have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $175.45.

Institutional Investors Weigh In On Reddit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RDDT. State Street Corp boosted its holdings in shares of Reddit by 212.7% in the 3rd quarter. State Street Corp now owns 9,317,592 shares of the company’s stock worth $1,327,198,000 after purchasing an additional 6,338,005 shares during the period. Wellington Management Group LLP raised its holdings in Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock valued at $271,572,000 after buying an additional 280,030 shares during the period. Robeco Institutional Asset Management B.V. raised its holdings in Reddit by 74.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after buying an additional 345,735 shares during the period. First Trust Advisors LP raised its holdings in Reddit by 218.9% during the 3rd quarter. First Trust Advisors LP now owns 482,899 shares of the company’s stock valued at $68,784,000 after buying an additional 331,454 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Reddit by 8.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock worth $83,647,000 after buying an additional 39,540 shares during the last quarter.

Reddit News Roundup

Investors following RDDT have been watching these news items:

• Positive Sentiment: Reddit’s growing ad revenue, AI-powered ad targeting and expanding advertiser base could support continued growth as it competes with Meta and Snap. Reddit Rides on Strong Ad Growth: Can It Outpace META and SNAP?
• Neutral Sentiment: CEO Steve Huffman described AI as a double-edged issue: Reddit’s community content may be valuable to AI services, but AI-generated search summaries can also divert users away from Reddit. Reddit CEO Steve Huffman explains the paradox of AI for his company
• Negative Sentiment: Similarweb data showed Reddit traffic down 13% year over year. Huffman has said Google’s AI Overviews have eaten into search traffic, raising concerns about user acquisition and the platform’s reliance on referrals. Reddit’s traffic is down 13%, thanks to Google’s AI Overviews

Reddit Company Profile

Reddit, Inc. operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community. The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications. Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.