Reddit (NYSE:RDDT) Shares Down 4.1% - Here's What Happened

Key Points

• Reddit's stock price fell by 4.1%, trading between $196.10 and $197.50, with a significant drop in trading volume by 86% from the average.
• Despite the recent decline, several analysts maintain optimistic ratings on Reddit, with a range of price targets from $203.92 to $250.00.
• Insider transactions revealed that CEO Steve Huffman and COO Jennifer Wong sold substantial shares, with the insider ownership now at 34.25%.

Reddit Inc. (NYSE:RDDT - Get Free Report)'s stock price dropped 4.1% on Wednesday . The company traded as low as $196.10 and last traded at $197.50. Approximately 1,033,531 shares traded hands during trading, a decline of 86% from the average daily volume of 7,549,099 shares. The stock had previously closed at $205.92.

Wall Street Analysts Forecast Growth

RDDT has been the subject of a number of recent analyst reports. Argus initiated coverage on Reddit in a research report on Monday, August 18th. They set a "buy" rating and a $250.00 target price for the company. Weiss Ratings reiterated a "hold (c-)" rating on shares of Reddit in a research report on Wednesday. Robert W. Baird upped their target price on Reddit from $177.00 to $240.00 and gave the company a "neutral" rating in a research report on Thursday, September 25th. Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a research report on Sunday, September 7th. Finally, Raymond James Financial reiterated a "strong-buy" rating and set a $225.00 target price (up from $175.00) on shares of Reddit in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Reddit presently has an average rating of "Moderate Buy" and an average price target of $203.92.

Reddit Stock Performance

The company has a market cap of $37.87 billion, a price-to-earnings ratio of 183.32, a PEG ratio of 3.20 and a beta of 2.23. The business has a fifty day moving average price of $227.01 and a 200 day moving average price of $157.84.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.20 by $0.25. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The company had revenue of $499.63 million during the quarter, compared to analysts' expectations of $424.07 million. During the same quarter in the previous year, the firm earned ($0.06) EPS. Reddit's revenue was up 77.9% on a year-over-year basis. Reddit has set its Q3 2025 guidance at EPS. As a group, equities analysts anticipate that Reddit Inc. will post 1.12 EPS for the current year.

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Friday, August 29th. The stock was sold at an average price of $223.41, for a total value of $4,021,380.00. Following the completion of the sale, the chief executive officer owned 494,104 shares of the company's stock, valued at approximately $110,387,774.64. This represents a 3.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Jennifer L. Wong sold 40,967 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $220.38, for a total value of $9,028,307.46. Following the completion of the sale, the chief operating officer directly owned 120,033 shares of the company's stock, valued at approximately $26,452,872.54. The trade was a 25.45% decrease in their position. The disclosure for this sale can be found here. Insiders sold 397,834 shares of company stock worth $86,512,599 in the last 90 days. 34.25% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently made changes to their positions in the stock. Petrus Trust Company LTA acquired a new stake in shares of Reddit in the first quarter valued at about $473,000. JPMorgan Chase & Co. boosted its position in shares of Reddit by 98.2% during the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after purchasing an additional 944,847 shares in the last quarter. Greycroft LP boosted its position in shares of Reddit by 109.1% during the 1st quarter. Greycroft LP now owns 11,500 shares of the company's stock valued at $1,206,000 after purchasing an additional 6,000 shares in the last quarter. Think Investments LP boosted its position in shares of Reddit by 10.3% during the 1st quarter. Think Investments LP now owns 268,000 shares of the company's stock valued at $28,113,000 after purchasing an additional 25,000 shares in the last quarter. Finally, Sender Co & Partners Inc. bought a new stake in shares of Reddit during the 1st quarter valued at about $1,367,000.

About Reddit

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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