Reddit (NYSE:RDDT) Shares Down 5.5% - Time to Sell?

Key Points

• Reddit's shares fell by 5.5% to $228.73, with a dramatic decline in trading volume—down 92% from the average session.
• Analysts have varying ratings for Reddit, with recent price targets ranging from $150 to $300, and a consensus target price of $201.58.
• CEO Steve Ladd Huffman sold 18,000 shares at about $261.22 per share, reducing his ownership by 3.51%, while insiders overall sold 379,834 shares in the last quarter.

Reddit Inc. (NYSE:RDDT - Get Free Report) shares traded down 5.5% on Tuesday . The company traded as low as $229.85 and last traded at $228.73. 606,235 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 7,544,908 shares. The stock had previously closed at $241.98.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the company. Sanford C. Bernstein lifted their price target on Reddit from $130.00 to $150.00 and gave the stock a "market perform" rating in a research note on Tuesday, July 22nd. JPMorgan Chase & Co. lifted their price target on Reddit from $145.00 to $190.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. JMP Securities lifted their target price on Reddit from $225.00 to $300.00 and gave the company a "market outperform" rating in a research note on Thursday, September 18th. Morgan Stanley lifted their target price on Reddit from $170.00 to $230.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $225.00 target price (up previously from $175.00) on shares of Reddit in a research note on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $201.58.

Reddit Stock Performance

The firm has a market cap of $42.62 billion, a P/E ratio of 206.54, a PEG ratio of 3.78 and a beta of 2.38. The company has a 50 day moving average of $219.74 and a 200 day moving average of $154.18.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.45 EPS 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 business 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 business posted ($0.06) EPS. The firm's quarterly revenue was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. As a group, analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $261.22, for a total value of $4,701,960.00. Following the completion of the sale, the chief executive officer directly owned 494,104 shares in the company, valued at approximately $129,069,846.88. The trade was a 3.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Michelle Marie Reynolds sold 3,214 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $217.69, for a total value of $699,655.66. Following the completion of the sale, the chief accounting officer owned 28,088 shares of the company's stock, valued at approximately $6,114,476.72. This trade represents a 10.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 379,834 shares of company stock worth $82,388,799. 34.25% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Petrus Trust Company LTA acquired a new position in shares of Reddit during the first quarter worth approximately $473,000. Greycroft LP lifted its holdings in shares of Reddit by 109.1% during the first quarter. Greycroft LP now owns 11,500 shares of the company's stock worth $1,206,000 after buying an additional 6,000 shares during the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Reddit by 98.2% during the first quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock worth $200,096,000 after buying an additional 944,847 shares during the last quarter. Think Investments LP lifted its holdings in shares of Reddit by 10.3% during the first quarter. Think Investments LP now owns 268,000 shares of the company's stock worth $28,113,000 after buying an additional 25,000 shares during the last quarter. Finally, Sender Co & Partners Inc. acquired a new position in shares of Reddit during the first quarter worth approximately $1,367,000.

Reddit Company Profile

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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