Reddit (NYSE:RDDT) Trading Down 4.5% - Should You Sell?

Key Points

• Reddit Inc. (NYSE:RDDT) shares declined by 4.5%, trading at $254.69, with a significant drop in daily trading volume to 894,469 shares compared to an average of 7.6 million shares.
• The stock has received mixed reviews from analysts, with a Moderate Buy rating and an average target price of $191.42, while some analysts have set price targets as high as $300.
• In recent insider trading, CFO Andrew Vollero and CEO Steve Ladd Huffman sold significant amounts of Reddit stock, reducing their ownership stakes by 9.55% and 3.51% respectively.

Reddit Inc. (NYSE:RDDT - Get Free Report) shares fell 4.5% during mid-day trading on Wednesday . The stock traded as low as $254.00 and last traded at $254.69. 894,469 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 7,601,401 shares. The stock had previously closed at $266.66.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on RDDT. Argus began coverage on Reddit in a research report on Monday, August 18th. They issued a "buy" rating and a $250.00 price objective for the company. Robert W. Baird lifted their target price on shares of Reddit from $120.00 to $151.00 and gave the stock a "neutral" rating in a report on Tuesday, July 8th. Loop Capital reduced their target price on shares of Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a report on Thursday, June 12th. Needham & Company LLC increased their price objective on Reddit from $215.00 to $300.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Oppenheimer increased their price objective on Reddit from $215.00 to $300.00 and gave the stock an "outperform" rating in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $191.42.

Reddit Price Performance

The firm has a market capitalization of $48.36 billion, a P/E ratio of 234.88, a P/E/G ratio of 4.18 and a beta of 2.40. The stock has a fifty day simple moving average of $200.91 and a two-hundred day simple moving average of $147.11.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The firm's revenue for the quarter was up 77.9% on a year-over-year basis. During the same period in the previous year, the company posted ($0.06) earnings per share. Reddit has set its Q3 2025 guidance at EPS. As a group, sell-side analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Andrew Vollero sold 30,000 shares of Reddit stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $218.09, for a total transaction of $6,542,700.00. Following the transaction, the chief financial officer owned 284,168 shares of the company's stock, valued at $61,974,199.12. The trade was a 9.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $223.41, for a total value of $4,021,380.00. Following the transaction, the chief executive officer directly owned 494,104 shares in the company, valued at approximately $110,387,774.64. The trade was a 3.51% decrease in their position. The disclosure for this sale can be found here. Insiders sold 342,126 shares of company stock worth $68,827,399 in the last ninety days. Corporate insiders own 34.25% of the company's stock.

Institutional Trading of Reddit

Several hedge funds have recently made changes to their positions in RDDT. Captrust Financial Advisors bought a new stake in shares of Reddit in the fourth quarter valued at $305,000. Cetera Investment Advisers raised its stake in shares of Reddit by 94.3% in the fourth quarter. Cetera Investment Advisers now owns 7,258 shares of the company's stock valued at $1,186,000 after buying an additional 3,523 shares during the period. Gotham Asset Management LLC bought a new stake in shares of Reddit in the fourth quarter valued at $407,000. Janus Henderson Group PLC raised its stake in shares of Reddit by 137.0% during the 4th quarter. Janus Henderson Group PLC now owns 25,600 shares of the company's stock valued at $4,191,000 after purchasing an additional 14,800 shares during the period. Finally, Snowden Capital Advisors LLC bought a new stake in shares of Reddit during the 4th quarter valued at $378,000.

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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