Reddit (NYSE:RDDT) Shares Down 5.2% Following Insider Selling

Reddit Inc. (NYSE:RDDT)’s share price was down 5.2% during trading on Wednesday following insider selling activity. The company traded as low as $146.05 and last traded at $146.8140. Approximately 976,414 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 5,204,628 shares. The stock had previously closed at $154.88.

Specifically, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $157.15, for a total transaction of $2,828,700.00. Following the completion of the transaction, the chief executive officer directly owned 411,195 shares of the company’s stock, valued at approximately $64,619,294.25. This trade represents a 4.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of Reddit from $149.00 to $176.00 and gave the stock an “equal weight” rating in a research note on Friday, May 1st. Evercore restated an “outperform” rating and set a $290.00 target price on shares of Reddit in a research report on Friday, February 6th. Roth Mkm upped their price target on shares of Reddit from $210.00 to $215.00 and gave the company a “neutral” rating in a report on Friday, January 30th. DA Davidson reaffirmed a “buy” rating and set a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $285.00 price objective on shares of Reddit in a research note on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $228.61.

Reddit Price Performance

The business’s fifty day simple moving average is $147.08 and its two-hundred day simple moving average is $180.52. The company has a market cap of $28.41 billion, a PE ratio of 41.62 and a beta of 1.85.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The business had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same period in the prior year, the company posted $0.13 EPS. The company’s revenue for the quarter was up 69.1% on a year-over-year basis. As a group, analysts predict that Reddit Inc. will post 4.83 EPS for the current year.

Institutional Trading of Reddit

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after buying an additional 1,083,540 shares in the last quarter. Capital World Investors acquired a new position in Reddit during the fourth quarter worth $1,293,258,000. State Street Corp lifted its holdings in Reddit by 6.0% during the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after purchasing an additional 149,401 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after purchasing an additional 106,821 shares in the last quarter. Finally, Morgan Stanley grew its position in shares of Reddit by 11.4% in the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock valued at $545,354,000 after purchasing an additional 242,709 shares during the period.

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.