Reddit (NYSE:RDDT) Shares Down 5.1% Following Insider Selling

Reddit, Inc. (NYSE:RDDT - Get Free Report)'s share price dropped 5.1% on Wednesday following insider selling activity. The company traded as low as $100.88 and last traded at $100.29. Approximately 1,727,077 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 5,946,626 shares. The stock had previously closed at $105.64.

Specifically, COO Jennifer L. Wong sold 33,333 shares of the business's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $113.38, for a total transaction of $3,779,295.54. Following the completion of the transaction, the chief operating officer now owns 1,466,119 shares of the company's stock, valued at approximately $166,228,572.22. The trade was a 2.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Steve Ladd Huffman sold 124,408 shares of the business's stock in a transaction on Thursday, May 15th. The stock was sold at an average price of $114.98, for a total value of $14,304,431.84. Following the transaction, the chief executive officer now directly owns 577,013 shares of the company's stock, valued at $66,344,954.74. This trade represents a 17.74% decrease in their position. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Piper Sandler restated an "overweight" rating and set a $150.00 price objective (up previously from $140.00) on shares of Reddit in a research report on Friday, May 2nd. B. Riley restated a "buy" rating and set a $220.00 price objective (down previously from $222.00) on shares of Reddit in a research report on Friday, May 2nd. Roth Capital restated a "neutral" rating on shares of Reddit in a research report on Friday, May 2nd. JMP Securities reiterated a "market outperform" rating and issued a $180.00 price target on shares of Reddit in a research report on Friday, May 2nd. Finally, Morgan Stanley reduced their price target on Reddit from $210.00 to $140.00 and set an "overweight" rating on the stock in a research report on Thursday, April 17th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $141.36.

Reddit Price Performance

The firm has a fifty day simple moving average of $108.63 and a two-hundred day simple moving average of $145.59. The firm has a market capitalization of $18.56 billion, a P/E ratio of -13.11, a price-to-earnings-growth ratio of 4.72 and a beta of 2.90.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The company reported $0.13 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.11. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The firm had revenue of $392.36 million during the quarter, compared to analyst estimates of $370.55 million. During the same period last year, the company earned ($8.19) earnings per share. The business's revenue for the quarter was up 61.5% on a year-over-year basis. On average, research analysts anticipate that Reddit, Inc. will post 1.12 EPS for the current year.

Hedge Funds Weigh In On Reddit

A number of large investors have recently made changes to their positions in the stock. Plato Investment Management Ltd bought a new stake in Reddit during the fourth quarter valued at $27,000. EverSource Wealth Advisors LLC bought a new stake in Reddit during the fourth quarter valued at $28,000. Farmers & Merchants Investments Inc. bought a new stake in Reddit during the fourth quarter valued at $33,000. Bogart Wealth LLC purchased a new stake in Reddit during the fourth quarter valued at about $33,000. Finally, Allworth Financial LP raised its position in Reddit by 970.0% during the fourth quarter. Allworth Financial LP now owns 214 shares of the company's stock valued at $35,000 after purchasing an additional 194 shares in the last quarter.

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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