Reddit (NYSE:RDDT) COO Sells $6,324,295.49 in Stock

Key Points

• COO Jennifer Wong sold 39,167 shares under a pre-arranged Rule 10b5-1 plan on April 16, raising $6.32M and reducing her stake by 3.47% to 1,088,451 shares valued at about $175.75M.
• Reddit posted strong quarterly results, reporting $1.24 EPS versus a $0.96 estimate and revenue of $725.6M, up 69.7% year-over-year with a 24.05% net margin.
• Stock and analyst snapshot: RDDT traded near $166.13 with a $31.7B market cap and P/E of 63.4, a one-year range of $90.78–$282.95, and a MarketBeat consensus of "Moderate Buy" with a $237.46 target.

Reddit Inc. (NYSE:RDDT - Get Free Report) COO Jennifer Wong sold 39,167 shares of the firm's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the transaction, the chief operating officer directly owned 1,088,451 shares of the company's stock, valued at $175,752,182.97. This represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Reddit Price Performance

RDDT traded up $2.33 during trading on Monday, reaching $166.13. 3,051,417 shares of the company's stock were exchanged, compared to its average volume of 3,967,546. Reddit Inc. has a 1 year low of $90.78 and a 1 year high of $282.95. The stock has a market capitalization of $31.74 billion, a P/E ratio of 63.41, a price-to-earnings-growth ratio of 1.19 and a beta of 2.40. The company's fifty day simple moving average is $142.12 and its 200-day simple moving average is $186.89.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same period last year, the firm posted $0.36 EPS. Reddit's revenue for the quarter was up 69.7% compared to the same quarter last year. Equities analysts forecast that Reddit Inc. will post 4.02 EPS for the current year.

Hedge Funds Weigh In On Reddit

Several institutional investors have recently made changes to their positions in the company. Capital World Investors acquired a new stake in Reddit in the 4th quarter valued at $1,293,258,000. Norges Bank acquired a new stake in Reddit in the 4th quarter valued at $372,047,000. Vanguard Group Inc. grew its stake in Reddit by 12.9% in the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after acquiring an additional 1,401,293 shares during the period. Invesco Ltd. grew its stake in Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after acquiring an additional 1,201,237 shares during the period. Finally, State Street Corp grew its stake in Reddit by 138.5% in the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after acquiring an additional 1,178,890 shares during the period.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on RDDT. Oppenheimer reduced their price target on shares of Reddit from $300.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, February 6th. The Goldman Sachs Group cut their target price on shares of Reddit from $206.00 to $180.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 target price on shares of Reddit in a report on Friday, February 6th. Zacks Research lowered shares of Reddit from a "strong-buy" rating to a "hold" rating in a report on Friday, December 26th. Finally, B. Riley Financial lifted their target price on shares of Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a report on Friday, February 6th. One 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. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $237.46.

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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