Reddit (NYSE:RDDT) COO Jennifer Wong Sells 75,000 Shares of Stock

Reddit Inc. (NYSE:RDDT) COO Jennifer Wong sold 75,000 shares of Reddit stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares of the company’s stock, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Reddit Stock Performance

Shares of RDDT opened at $158.12 on Wednesday. The stock has a market capitalization of $30.42 billion, a PE ratio of 36.77, a P/E/G ratio of 0.60 and a beta of 2.04. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The company’s 50-day simple moving average is $174.77 and its 200-day simple moving average is $158.97.

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

Wall Street Analyst Weigh In

RDDT has been the subject of several recent research reports. Telsey Advisory Group set a $240.00 price target on shares of Reddit in a research note on Friday, July 31st. Zacks Research upgraded Reddit from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 27th. Wall Street Zen lowered Reddit from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Jefferies Financial Group set a $250.00 target price on Reddit in a report on Friday, July 10th. Finally, Piper Sandler reissued an “overweight” rating and set a $195.00 target price (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, Reddit has an average rating of “Moderate Buy” and an average target price of $221.71.

Institutional Investors Weigh In On Reddit

Large investors have recently modified their holdings of the company. Truist Financial Corp lifted its position in Reddit by 67.7% in the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after purchasing an additional 6,321 shares during the period. Swiss Life Asset Management Ltd increased its position in Reddit by 63.2% during the 4th quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock worth $7,357,000 after purchasing an additional 12,398 shares during the period. Calamos Advisors LLC acquired a new position in Reddit during the 4th quarter worth approximately $2,299,000. Handelsbanken Fonder AB raised its stake in shares of Reddit by 22.9% during the 4th quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company’s stock worth $8,505,000 after buying an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. raised its stake in shares of Reddit by 326,400.0% during the 4th quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company’s stock worth $7,505,000 after buying an additional 32,640 shares in the last quarter.

Trending Headlines about Reddit

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

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.