Reddit (NYSE:RDDT) Trading Down 8.6% on Insider Selling

Reddit, Inc. (NYSE:RDDT) dropped 8.6% during trading on Thursday following insider selling activity. The stock traded as low as $172.20 and last traded at $173.43. Approximately 5,745,156 shares were traded during mid-day trading, a decline of 0% from the average daily volume of 5,750,339 shares. The stock had previously closed at $189.66.

Specifically, CEO Steve Ladd Huffman sold 14,000 shares of the stock in a transaction that occurred on Tuesday, February 18th. The stock was sold at an average price of $187.78, for a total transaction of $2,628,920.00. Following the completion of the transaction, the chief executive officer now directly owns 614,394 shares in the company, valued at approximately $115,370,905.32. This represents a 2.23 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 33,333 shares of the stock in a transaction that occurred on Tuesday, February 18th. The shares were sold at an average price of $187.72, for a total value of $6,257,270.76. Following the transaction, the chief operating officer now owns 1,504,297 shares of the company’s stock, valued at $282,386,632.84. This represents a 2.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Ratings Changes

RDDT has been the subject of a number of research reports. Jefferies Financial Group increased their target price on Reddit from $120.00 to $175.00 and gave the company a “buy” rating in a research report on Monday, November 25th. B. Riley increased their target price on Reddit from $112.00 to $187.00 and gave the company a “buy” rating in a research report on Tuesday, January 14th. The Goldman Sachs Group increased their target price on Reddit from $105.00 to $176.00 and gave the company a “neutral” rating in a research report on Tuesday, January 14th. Raymond James increased their price target on Reddit from $200.00 to $250.00 and gave the company a “strong-buy” rating in a report on Monday, February 10th. Finally, Piper Sandler increased their price target on Reddit from $210.00 to $220.00 and gave the company an “overweight” rating in a report on Friday. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $175.95.

Reddit Stock Down 5.2 %

The firm has a market cap of $30.08 billion and a PE ratio of -21.51. The business has a 50 day simple moving average of $184.13 and a two-hundred day simple moving average of $123.17.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. Equities analysts forecast that Reddit, Inc. will post 1.12 earnings per share for the current year.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently made changes to their positions in the company. Jennison Associates LLC bought a new stake in shares of Reddit in the fourth quarter valued at about $494,861,000. Renaissance Capital LLC raised its holdings in shares of Reddit by 14.2% in the fourth quarter. Renaissance Capital LLC now owns 31,236 shares of the company’s stock valued at $5,105,000 after acquiring an additional 3,892 shares in the last quarter. ARK Investment Management LLC raised its holdings in shares of Reddit by 120.5% in the third quarter. ARK Investment Management LLC now owns 352,721 shares of the company’s stock valued at $23,251,000 after acquiring an additional 192,785 shares in the last quarter. Wellington Management Group LLP raised its holdings in Reddit by 3,640.5% in the third quarter. Wellington Management Group LLP now owns 255,325 shares of the company’s stock worth $16,831,000 after purchasing an additional 248,499 shares in the last quarter. Finally, Newbridge Financial Services Group Inc. raised its holdings in Reddit by 666.7% in the fourth quarter. Newbridge Financial Services Group Inc. now owns 2,300 shares of the company’s stock worth $376,000 after purchasing an additional 2,000 shares in the last quarter.

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.