Reddit (NYSE:RDDT) CEO Steve Ladd Huffman Sells 18,000 Shares of Stock

Reddit Inc. (NYSE:RDDT) CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.16, for a total value of $3,206,880.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Steve Ladd Huffman also recently made the following trade(s):

• On Tuesday, August 4th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $159.78, for a total transaction of $2,876,040.00.
• On Tuesday, June 30th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00.
• On Monday, June 15th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $178.26, for a total transaction of $3,208,680.00.
• On Friday, May 29th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $174.13, for a total transaction of $3,134,340.00.

Reddit Stock Performance

NYSE:RDDT opened at $158.12 on Wednesday. Reddit Inc. has a 52 week low of $119.27 and a 52 week high of $282.95. The firm has a 50-day moving average price of $174.77 and a two-hundred day moving average price of $158.97. The firm has a market cap of $30.42 billion, a price-to-earnings ratio of 36.77, a price-to-earnings-growth ratio of 0.60 and a beta of 2.04.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.30. The company had revenue of $804.91 million during the quarter, compared to analyst estimates of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.Reddit’s quarterly revenue was up 61.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.45 earnings per share. As a group, sell-side analysts forecast that Reddit Inc. will post 5.22 earnings per share for the current year.

Wall Street Analyst Weigh In

RDDT has been the topic of a number of recent analyst reports. Telsey Advisory Group set a $240.00 target price on Reddit in a research note on Friday, July 31st. Zacks Research raised shares of Reddit from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 27th. Cantor Fitzgerald reduced their target price on shares of Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Wells Fargo & Company lowered their price target on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a report on Friday, July 31st. Finally, Rothschild & Co Redburn set a $110.00 price objective on Reddit in a research note on Monday, April 27th. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and an average target price of $221.71.

Hedge Funds Weigh In On Reddit

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sunbelt Securities Inc. lifted its stake in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares in the last quarter. Ascentis Independent Advisors bought a new stake in Reddit during the 1st quarter valued at $30,000. EverSource Wealth Advisors LLC lifted its position in shares of Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after acquiring an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. bought a new position in shares of Reddit in the second quarter worth $35,000. Finally, Geneos Wealth Management Inc. grew its position in shares of Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s rapidly expanding advertising business and growing advertiser base may give it an advantage over Meta Platforms, though RDDT trades at a richer valuation and faces potential search-traffic headwinds. RDDT vs. META: Which Digital Advertising Stock Has an Edge Right Now?
• Positive Sentiment: Wall Street’s average price target of $215.31 implies roughly 31% upside from the levels cited in recent coverage, supporting the bullish case despite RDDT’s decline this year. Reddit Fell Almost 30% This Year: 80% Gains Are In Store According to Wall Street Pros
• Positive Sentiment: Reddit began testing a TikTok-like audio and video experience that could increase time spent on the platform and create new engagement and monetization opportunities if it scales successfully. Reddit begins testing a new audio and video experience
• Positive Sentiment: Joining the S&P 500 could increase RDDT’s visibility and generate buying from index-tracking funds, although the near-term event can also produce repositioning-related volatility. Reddit Stock Falls Ahead of Joining the S&P 500
• Neutral Sentiment: Data-licensing revenue increased 24% to $43 million, with OpenAI and Google the largest buyers. The growth is encouraging, but the business remains relatively small compared with Reddit’s advertising operations. Reddit’s data licensing revenue grew 24% to $43 million
• Negative Sentiment: Executives sold shares under pre-arranged Rule 10b5-1 plans: COO Jennifer Wong sold 75,000 shares and CEO Steve Huffman sold 18,000. The planned nature reduces the signal’s significance, but the transactions can still weigh on sentiment. SEC filing for Jennifer Wong share sale SEC filing for Steve Huffman share sale
• Negative Sentiment: Investor commentary alleges that management stopped reporting or obscured a user metric just as engagement may have weakened, raising concerns about transparency and the sustainability of Reddit’s growth. Reddit management user-metric concerns

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.