Reddit (NYSE:RDDT) Stock Price Down 9.1% After Insider Selling

Key Points

• Reddit shares fell about 9.1% intraday (trading as low as $154.88 and last around $150.40) after CEO Steve Ladd Huffman sold 18,000 shares on Jan. 30 at an average price of $183.18, a $3.3M transaction that reduced his stake to 448,576 shares.
• Analyst sentiment remains generally positive — MarketBeat shows a "Moderate Buy" consensus with an average price target of $245.36, and several firms recently raised targets (some as high as $300).

Reddit Inc. (NYSE:RDDT - Get Free Report)'s stock price fell 9.1% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $154.88 and last traded at $150.3980. 791,772 shares were traded during trading, a decline of 82% from the average session volume of 4,364,304 shares. The stock had previously closed at $165.41.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Friday, January 30th. The stock was sold at an average price of $183.18, for a total transaction of $3,297,240.00. Following the completion of the sale, the chief executive officer owned 448,576 shares of the company's stock, valued at approximately $82,170,151.68. This represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

A number of research firms recently commented on RDDT. Morgan Stanley upped their price target on shares of Reddit from $250.00 to $265.00 and gave the company an "overweight" rating in a report on Tuesday, January 13th. JPMorgan Chase & Co. boosted their price objective on shares of Reddit from $190.00 to $227.00 and gave the company a "neutral" rating in a research report on Friday, October 31st. China Renaissance started coverage on shares of Reddit in a report on Tuesday, December 9th. They set a "buy" rating and a $300.00 target price for the company. Needham & Company LLC reissued a "buy" rating and issued a $300.00 target price on shares of Reddit in a research note on Monday, December 29th. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $250.00 price target (up previously from $225.00) on shares of Reddit in a research report on Monday, October 20th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Reddit currently has an average rating of "Moderate Buy" and an average price target of $245.36.

Reddit Price Performance

The stock has a 50 day simple moving average of $224.97 and a 200-day simple moving average of $215.59. The firm has a market cap of $28.76 billion, a PE ratio of 87.79, a PEG ratio of 1.23 and a beta of 2.17.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after acquiring an additional 1,083,540 shares in the last quarter. State Street Corp raised its stake in shares of Reddit by 22.3% in the third quarter. State Street Corp now owns 2,481,931 shares of the company's stock worth $570,819,000 after purchasing an additional 451,792 shares during the last quarter. JPMorgan Chase & Co. raised its stake in shares of Reddit by 7.5% in the second quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company's stock worth $308,846,000 after purchasing an additional 143,680 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Reddit by 72.1% during the second quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company's stock valued at $299,044,000 after purchasing an additional 833,245 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Reddit during the second quarter valued at $294,254,000.

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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