Reddit (NYSE:RDDT) Shares Down 4.4% After Insider Selling

Key Points

• Reddit shares fell 4.4% to about $150.64 after COO Jennifer Wong sold 60,000 shares for approximately $9.74 million under a pre-arranged Rule 10b5-1 trading plan. Trading volume was about 82% below the daily average.
• Analysts remain broadly bullish, with Reddit holding a consensus “Moderate Buy” rating and an average price target of $221.10; several firms recently raised their targets to between $270 and $300.
• Reddit’s latest quarterly results exceeded expectations, with earnings of $1.25 per share versus a $0.95 estimate and revenue of $804.91 million, up 61% year over year.

Reddit Inc. (NYSE:RDDT - Get Free Report) traded down 4.4% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $150.67 and last traded at $150.6380. Approximately 981,803 shares were traded during trading, a decline of 82% from the average daily volume of 5,420,681 shares. The stock had previously closed at $157.60.

Specifically, COO Jennifer Wong sold 60,000 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $162.33, for a total transaction of $9,739,800.00. Following the completion of the transaction, the chief operating officer owned 1,012,226 shares of the company's stock, valued at $164,314,646.58. This represents a 5.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of research firms recently issued reports on RDDT. Robert W. Baird set a $185.00 target price on Reddit in a research report on Friday, July 31st. B. Riley Financial increased their price target on Reddit from $250.00 to $270.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Truist Financial raised their price target on Reddit from $265.00 to $275.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price target on shares of Reddit in a research report on Wednesday, June 24th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Reddit in a research report on Monday, August 24th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, Reddit currently has a consensus rating of "Moderate Buy" and a consensus target price of $221.10.

Reddit Price Performance

The stock's 50-day simple moving average is $164.84 and its 200 day simple moving average is $159.46. The stock has a market capitalization of $29.16 billion, a P/E ratio of 35.25, a PEG ratio of 0.74 and a beta of 2.02.

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

Institutional Investors Weigh In On Reddit

Institutional investors have recently made changes to their positions in the company. Sunbelt Securities Inc. increased its stake in shares of Reddit by 87.5% during the first 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 grew its holdings in Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock valued at $34,000 after buying an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. acquired a new position in Reddit in the 2nd quarter valued at $35,000. Ascentis Independent Advisors bought a new position in Reddit during the 1st quarter worth $30,000. Finally, Rothschild Investment LLC increased its position in Reddit by 163.1% during the 4th quarter. Rothschild Investment LLC now owns 271 shares of the company's stock worth $62,000 after buying an additional 168 shares during the period.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.