Jennifer Wong Sells 75,000 Shares of Reddit (NYSE:RDDT) Stock

Key Points

• Reddit COO Jennifer Wong sold 75,000 shares at an average price of $178.55, generating approximately $13.39 million. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, and she retains 1,050,339 shares.
• Reddit shares traded at $158.12, down $6.38, with a market capitalization of roughly $30.42 billion. The stock has ranged from $119.27 to $282.95 over the past 52 weeks.
• Reddit reported quarterly EPS of $1.25, exceeding estimates of $0.95, while revenue rose 61% year over year to $804.91 million. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $221.71.

Reddit Inc. (NYSE:RDDT - Get Free Report) COO Jennifer Wong sold 75,000 shares of Reddit stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the sale, the chief operating officer owned 1,050,339 shares in the company, valued at $187,538,028.45. This represents a 6.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Reddit Stock Performance

Shares of NYSE RDDT traded down $6.38 during mid-day trading on Tuesday, reaching $158.12. 7,429,969 shares of the company's stock were exchanged, compared to its average volume of 5,572,609. The firm has a market capitalization of $30.42 billion, a price-to-earnings ratio of 36.77, a PEG ratio of 0.60 and a beta of 2.04. Reddit Inc. has a 52-week low of $119.27 and a 52-week high of $282.95. The company's 50-day moving average is $174.77 and its 200-day moving average is $158.97.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $731.00 million. During the same period last year, the company earned $0.45 EPS. The company's quarterly revenue was up 61.0% on a year-over-year basis. As a group, equities analysts predict that Reddit Inc. will post 5.22 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Reddit

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

Analyst Upgrades and Downgrades

Several brokerages have recently commented on RDDT. B. Riley Financial upped their price objective on shares of Reddit from $250.00 to $270.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Truist Financial boosted their target price on Reddit from $265.00 to $275.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Citizens Jmp decreased their price target on Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a research note on Friday, May 1st. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $180.00 price objective on shares of Reddit in a research note on Friday, July 31st. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target 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.

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