Insider Selling: Reddit (NYSE:RDDT) CTO Sells 14,000 Shares of Stock

Key Points

• Reddit CTO Christopher Brian Slowe sold 14,000 shares on January 22 at an average price of $212.61 for about $2.98 million, trimming his stake by 7.71% to 167,694 shares (≈$35.65M) as disclosed in an SEC filing.
• Slowe has repeatedly sold large blocks of Reddit stock in recent months (including multiple 14,000-share sales on Jan 8, Dec 22, Dec 8 and a 24,000-share sale on Nov 24), indicating a sustained pattern of insider liquidation.
• Reddit shares were down 2.2% to $213.96, the company has a market cap of $40.54B and a high P/E (~123), and analysts maintain a consensus "Moderate Buy" with a $245.18 target after a recent earnings beat and 67.9% year-over-year revenue growth.

Reddit Inc. (NYSE:RDDT - Get Free Report) CTO Christopher Brian Slowe sold 14,000 shares of the stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $212.61, for a total transaction of $2,976,540.00. Following the completion of the sale, the chief technology officer owned 167,694 shares of the company's stock, valued at approximately $35,653,421.34. This represents a 7.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Christopher Brian Slowe also recently made the following trade(s):

• On Thursday, January 8th, Christopher Brian Slowe sold 14,000 shares of Reddit stock. The stock was sold at an average price of $253.88, for a total transaction of $3,554,320.00.
• On Monday, December 22nd, Christopher Brian Slowe sold 14,000 shares of Reddit stock. The shares were sold at an average price of $233.53, for a total transaction of $3,269,420.00.
• On Monday, December 8th, Christopher Brian Slowe sold 14,000 shares of Reddit stock. The stock was sold at an average price of $233.99, for a total transaction of $3,275,860.00.
• On Monday, November 24th, Christopher Brian Slowe sold 24,000 shares of Reddit stock. The stock was sold at an average price of $192.72, for a total value of $4,625,280.00.
• On Monday, November 10th, Christopher Brian Slowe sold 14,000 shares of Reddit stock. The stock was sold at an average price of $204.43, for a total transaction of $2,862,020.00.

Reddit Stock Down 2.2%

RDDT traded down $4.92 during trading on Monday, hitting $213.96. 2,618,481 shares of the company traded hands, compared to its average volume of 4,236,948. Reddit Inc. has a one year low of $79.75 and a one year high of $282.95. The stock's fifty day moving average is $225.46 and its 200 day moving average is $213.47. The firm has a market cap of $40.54 billion, a P/E ratio of 122.96, a price-to-earnings-growth ratio of 1.49 and a beta of 2.17.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The firm had revenue of $584.91 million during the quarter, compared to the consensus estimate of $546.65 million. During the same period in the prior year, the firm earned $0.16 EPS. The company's revenue was up 67.9% compared to the same quarter last year. On average, equities research analysts forecast that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on RDDT. Wall Street Zen lowered shares of Reddit from a "buy" rating to a "hold" rating in a research report on Saturday, January 10th. Evercore ISI initiated coverage on shares of Reddit in a research note on Monday, January 12th. They set an "outperform" rating and a $320.00 price target on the stock. Morgan Stanley lifted their price objective on shares of Reddit from $250.00 to $265.00 and gave the company an "overweight" rating in a research note on Tuesday, January 13th. Royal Bank Of Canada reissued a "sector perform" rating on shares of Reddit in a report on Wednesday, October 1st. Finally, China Renaissance initiated coverage on Reddit in a report on Tuesday, December 9th. They issued a "buy" rating and a $300.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $245.18.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently bought and sold shares of the stock. Teacher Retirement System of Texas increased its position in shares of Reddit by 880.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company's stock valued at $14,255,000 after purchasing an additional 85,020 shares during the last quarter. Union Bancaire Privee UBP SA purchased a new stake in Reddit in the second quarter worth approximately $2,078,000. J. Safra Sarasin Holding AG purchased a new stake in Reddit in the second quarter worth approximately $226,000. Plato Investment Management Ltd grew its position in Reddit by 120.2% during the second quarter. Plato Investment Management Ltd now owns 2,970 shares of the company's stock valued at $446,000 after acquiring an additional 1,621 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey purchased a new position in shares of Reddit during the second quarter worth approximately $2,666,000.

Reddit Company Profile

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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