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

Reddit, Inc. (NYSE:RDDT - Get Free Report) dropped 5.1% on Wednesday following insider selling activity. The stock traded as low as $100.88 and last traded at $100.29. Approximately 1,727,077 shares changed hands during 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 Reddit stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $113.38, for a total value of $3,779,295.54. Following the transaction, the chief operating officer now owns 1,466,119 shares in the company, valued at $166,228,572.22. The trade was a 2.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Steve Ladd Huffman sold 124,408 shares of the business's stock in a transaction dated 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 sale, the chief executive officer now owns 577,013 shares in the company, valued at approximately $66,344,954.74. This trade represents a 17.74% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. B. Riley reissued a "buy" rating and issued a $220.00 price objective (down previously from $222.00) on shares of Reddit in a research note on Friday, May 2nd. Citigroup lifted their target price on shares of Reddit from $150.00 to $158.00 and gave the stock a "buy" rating in a research report on Friday, May 2nd. Morgan Stanley reduced their price objective on Reddit from $210.00 to $140.00 and set an "overweight" rating for the company in a research note on Thursday, April 17th. JPMorgan Chase & Co. decreased their target price on Reddit from $185.00 to $110.00 and set a "neutral" rating for the company in a research report on Tuesday, April 8th. Finally, Guggenheim cut their price target on shares of Reddit from $170.00 to $165.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $140.45.

Reddit Trading Up 2.8%

The company has a market capitalization of $18.64 billion, a PE ratio of -13.07, a price-to-earnings-growth ratio of 4.72 and a beta of 2.90. The business's fifty day moving average is $107.27 and its two-hundred day moving average is $145.29.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to the consensus estimate of $370.55 million. During the same period in the prior year, the company posted ($8.19) earnings per share. The company's quarterly revenue was up 61.5% on a year-over-year basis. As a group, equities research analysts anticipate that Reddit, Inc. will post 1.12 EPS for the current year.

Institutional Trading of Reddit

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in Reddit by 184.2% during the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company's stock valued at $1,500,606,000 after purchasing an additional 5,950,909 shares during the period. Jennison Associates LLC purchased a new stake in Reddit during the fourth quarter valued at $494,861,000. Alliancebernstein L.P. increased its position in Reddit by 103.0% during the first quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock valued at $593,733,000 after acquiring an additional 2,871,232 shares during the last quarter. Brooklyn FI LLC bought a new position in Reddit in the fourth quarter valued at about $303,082,000. Finally, GQG Partners LLC purchased a new position in Reddit in the fourth quarter worth about $271,539,000.

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.