Insider Selling: Reddit (NYSE:RDDT) CEO Sells $2,744,529.56 in Stock

Key Points

• Reddit CEO Steve Huffman sold 17,308 shares at an average price of $158.57, generating $2.74 million in proceeds. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced his direct ownership by 4.89% to 336,432 shares.
• Huffman has made several additional sales since August, totaling tens of thousands of shares, with individual transactions ranging from approximately $2.5 million to $3.2 million.
• Reddit shares recently traded at $159.30, while the company reported quarterly revenue of $804.91 million and EPS of $1.25, beating analyst expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $219.29.

Reddit Inc. (NYSE:RDDT - Get Free Report) CEO Steve Huffman sold 17,308 shares of the business's stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the sale, the chief executive officer directly owned 336,432 shares in the company, valued at $53,348,022.24. This trade represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 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, September 29th, Steve Huffman sold 17,308 shares of Reddit stock. The stock was sold at an average price of $144.87, for a total transaction of $2,507,409.96.
• On Tuesday, September 15th, Steve Huffman sold 17,308 shares of Reddit stock. The stock was sold at an average price of $160.11, for a total transaction of $2,771,183.88.
• On Monday, August 31st, Steve Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $148.02, for a total value of $2,664,360.00.
• On Friday, August 14th, Steve Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00.
• On Tuesday, August 4th, Steve Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $159.78, for a total value of $2,876,040.00.

Reddit Price Performance

Shares of NYSE:RDDT traded up $10.70 during midday trading on Thursday, hitting $159.30. The company had a trading volume of 4,026,219 shares, compared to its average volume of 5,379,345. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $263.50. The business's 50-day simple moving average is $154.18 and its 200-day simple moving average is $161.16. The stock has a market cap of $30.65 billion, a price-to-earnings ratio of 37.05, a price-to-earnings-growth ratio of 0.72 and a beta of 2.05.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating analysts' consensus estimates of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The firm had revenue of $804.91 million for the quarter, compared to analysts' expectations of $731.00 million. During the same period in the prior year, the firm posted $0.45 earnings per share. The firm's quarterly revenue was up 61.0% on a year-over-year basis. As a group, sell-side analysts forecast that Reddit Inc. will post 5.27 EPS for the current year.

Institutional Trading of Reddit

Several large investors have recently bought and sold shares of the company. Sunbelt Securities Inc. lifted its position in shares of Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock worth $26,000 after purchasing an additional 91 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of Reddit by 48.1% in the 2nd 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. Beacon Investment Advisory Services Inc. bought a new stake in Reddit in the second quarter worth $35,000. Ascentis Independent Advisors purchased a new stake in Reddit during the 1st quarter valued at about $30,000. Finally, Hager Investment Management Services LLC grew its holdings in shares of Reddit by 522.2% during the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company's stock valued at $49,000 after buying an additional 235 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on RDDT shares. Piper Sandler reaffirmed an "overweight" rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a report on Friday, July 31st. Cantor Fitzgerald cut their price target on shares of Reddit from $200.00 to $170.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Zacks Research downgraded Reddit from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. JPMorgan Chase & Co. lowered their price target on Reddit from $200.00 to $185.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Finally, UBS Group restated a "buy" rating on shares of Reddit in a research report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus target price of $219.29.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.

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