Reddit (NYSE:RDDT) Trading Down 4.4% on Insider Selling

Key Points

• Shares fell about 4.4% midday after CEO Steve Ladd Huffman sold 18,000 shares on Jan. 15 at an average price of $232.78 (a 3.86% reduction in his position); the stock traded as low as $214.40 with volume roughly 78% below average.
• Wall Street consensus is a Moderate Buy with an average price target of $240.17, based on 3 Strong Buy, 16 Buy, 12 Hold and 1 Sell ratings.
• Reddit recently beat earnings and revenue—$0.80 EPS vs $0.50 expected and $584.9M revenue, up 67.9% YoY—and currently trades with a $41.17B market cap and a P/E of 124.90.

Reddit Inc. (NYSE:RDDT - Get Free Report) shares were down 4.4% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $214.40 and last traded at $215.3530. Approximately 923,015 shares traded hands during trading, a decline of 78% from the average daily volume of 4,249,428 shares. The stock had previously closed at $225.36.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $232.78, for a total transaction of $4,190,040.00. Following the transaction, the chief executive officer owned 448,576 shares of the company's stock, valued at $104,419,521.28. This represents a 3.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on RDDT. Wells Fargo & Company increased their price target on Reddit from $186.00 to $207.00 and gave the company an "equal weight" rating in a report on Monday, January 12th. Cannonball Research reaffirmed a "buy" rating on shares of Reddit in a report on Tuesday, September 23rd. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Reddit in a research report on Wednesday, October 1st. Truist Financial set a $270.00 price objective on shares of Reddit in a research note on Friday, October 31st. Finally, Piper Sandler reaffirmed an "overweight" rating on shares of Reddit in a research report on Monday, December 1st. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and a consensus price target of $240.17.

Reddit Stock Performance

The stock has a market cap of $41.17 billion, a price-to-earnings ratio of 124.90, a price-to-earnings-growth ratio of 1.55 and a beta of 2.17. The stock's 50-day simple moving average is $224.30 and its two-hundred day simple moving average is $212.08.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The business's quarterly revenue was up 67.9% on a year-over-year basis. During the same period last year, the business posted $0.16 EPS. As a group, research analysts predict that Reddit Inc. will post 1.12 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RDDT. Norges Bank acquired a new position in shares of Reddit during the second quarter valued at $294,254,000. Vanguard Group Inc. boosted its stake in Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after acquiring an additional 1,401,293 shares during the last quarter. Amundi boosted its stake in Reddit by 2,060.5% in the second quarter. Amundi now owns 1,307,231 shares of the company's stock valued at $208,294,000 after acquiring an additional 1,246,725 shares during the last quarter. Invesco Ltd. grew its holdings in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock worth $342,212,000 after acquiring an additional 1,201,237 shares during the period. Finally, State Street Corp boosted its position in shares of Reddit by 138.5% during the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock worth $305,678,000 after purchasing an additional 1,178,890 shares in the last quarter.

Reddit Company Profile

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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