Insider Selling: Reddit (NYSE:RDDT) CEO Sells 18,000 Shares of Stock

Key Points

• Reddit CEO Steve Ladd Huffman sold 18,000 shares on April 15 at an average price of $158.40 for about $2.85 million, executing the trade under a pre-arranged Rule 10b5-1 plan.
• The sale trimmed his stake by 4.19% to 411,195 shares and follows multiple identical 18,000-share disposals earlier this year, indicating a steady insider selling cadence.
• Reddit shares traded near $163.41 (up 0.6%); the company posted a strong quarter on Feb. 5 with EPS of $1.24 beating estimates and revenue up 69.7% YoY, and analysts hold a consensus "Moderate Buy" with an average target of $237.46.

Reddit Inc. (NYSE:RDDT - Get Free Report) CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $158.40, for a total transaction of $2,851,200.00. Following the transaction, the chief executive officer directly owned 411,195 shares of the company's stock, valued at $65,133,288. The trade was a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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, March 31st, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $132.77, for a total value of $2,389,860.00.
• On Friday, March 13th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $132.86, for a total value of $2,391,480.00.
• On Friday, February 27th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $145.12, for a total value of $2,612,160.00.
• On Friday, February 13th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $138.81, for a total value of $2,498,580.00.
• On Friday, January 30th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $183.18, for a total value of $3,297,240.00.

Reddit Stock Up 0.6%

Shares of Reddit stock traded up $0.96 during trading hours on Friday, reaching $163.41. 4,042,096 shares of the stock traded hands, compared to its average volume of 5,295,362. The company has a 50 day moving average price of $141.15 and a 200 day moving average price of $188.09. The firm has a market capitalization of $31.22 billion, a price-to-earnings ratio of 62.37, a P/E/G ratio of 1.15 and a beta of 2.40. Reddit Inc. has a one year low of $90.78 and a one year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.28. The business had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The business's quarterly revenue was up 69.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.36 EPS. Sell-side analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current year.

Analyst Upgrades and Downgrades

RDDT has been the subject of several recent analyst reports. Guggenheim upped their target price on shares of Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, February 6th. Piper Sandler reissued an "overweight" rating and issued a $205.00 target price (down from $290.00) on shares of Reddit in a report on Friday, February 6th. Cantor Fitzgerald lowered their target price on shares of Reddit from $240.00 to $170.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Needham & Company LLC reissued a "buy" rating and set a $300.00 price objective on shares of Reddit in a report on Friday, February 6th. Finally, Wells Fargo & Company began coverage on shares of Reddit in a report on Tuesday, April 7th. They set an "equal weight" rating and a $149.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $237.46.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. NewEdge Advisors LLC raised its position in shares of Reddit by 143.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock valued at $837,000 after buying an additional 4,701 shares in the last quarter. Empowered Funds LLC purchased a new stake in shares of Reddit during the 1st quarter valued at about $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Reddit by 106.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock valued at $22,759,000 after buying an additional 111,780 shares in the last quarter. Focus Partners Wealth raised its position in shares of Reddit by 40.8% during the 1st quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock valued at $1,073,000 after buying an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after buying an additional 286 shares in the last quarter.

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.

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