Reddit (NYSE:RDDT) Shares Down 4.6% - Here's What Happened

Key Points

• Reddit Inc. shares experienced a 4.6% decline during midday trading, hitting a low of $246.39, with a total trading volume 84% lower than the average.
• Multiple research firms have issued ratings and price target updates for Reddit; notably, Needham & Company raised their target from $215.00 to $300.00, while Goldman Sachs set a target of $212.00.
• Insider trading activity has seen CFO Andrew Vollero sell 30,000 shares of the company at an average price of $218.09, resulting in a significant position decrease.

Shares of Reddit Inc. (NYSE:RDDT - Get Free Report) were down 4.6% during mid-day trading on Tuesday . The stock traded as low as $246.39 and last traded at $245.83. Approximately 1,218,465 shares were traded during trading, a decline of 84% from the average daily volume of 7,621,047 shares. The stock had previously closed at $257.56.

Analysts Set New Price Targets

Several research firms have weighed in on RDDT. Cannonball Research reissued a "buy" rating on shares of Reddit in a report on Tuesday. Citigroup restated an "outperform" rating on shares of Reddit in a report on Thursday, September 18th. Needham & Company LLC upped their price target on shares of Reddit from $215.00 to $300.00 and gave the company a "buy" rating in a report on Monday, September 15th. Wolfe Research upgraded Reddit to an "outperform" rating in a research report on Sunday, August 3rd. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $212.00 price target on shares of Reddit in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Reddit presently has an average rating of "Moderate Buy" and a consensus target price of $197.88.

Reddit Stock Performance

The firm has a market capitalization of $44.45 billion, a price-to-earnings ratio of 215.05, a price-to-earnings-growth ratio of 4.16 and a beta of 2.38. The stock's fifty day moving average is $210.50 and its two-hundred day moving average is $150.13.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate 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 the consensus estimate of $424.07 million. During the same period last year, the firm earned ($0.06) earnings per share. The company's revenue was up 77.9% on a year-over-year basis. Reddit has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Andrew Vollero sold 30,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $218.09, for a total value of $6,542,700.00. Following the completion of the sale, the chief financial officer owned 284,168 shares of the company's stock, valued at approximately $61,974,199.12. The trade was a 9.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $223.41, for a total transaction of $4,021,380.00. Following the completion of the sale, the chief executive officer owned 494,104 shares in the company, valued at approximately $110,387,774.64. This trade represents a 3.51% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 344,126 shares of company stock valued at $71,345,839. Corporate insiders own 34.25% of the company's stock.

Institutional Trading of Reddit

Several hedge funds and other institutional investors have recently bought and sold shares of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Reddit by 154.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 105,180 shares of the company's stock worth $17,191,000 after buying an additional 63,857 shares during the last quarter. Mackenzie Financial Corp acquired a new stake in Reddit during the fourth quarter worth about $316,000. Integrated Advisors Network LLC bought a new position in Reddit in the fourth quarter worth about $491,000. B. Riley Wealth Advisors Inc. acquired a new position in Reddit in the fourth quarter valued at approximately $2,716,000. Finally, Heck Capital Advisors LLC bought a new position in shares of Reddit during the fourth quarter valued at approximately $125,000.

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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