Insider Selling: Reddit (NYSE:RDDT) CEO Sells $2,664,360.00 in Stock

Reddit Inc. (NYSE:RDDT) CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $148.02, for a total value of $2,664,360.00. Following the completion of the transaction, the chief executive officer owned 336,432 shares in the company, valued at $49,798,664.64. This represents a 5.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Friday, August 14th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00.
• On Tuesday, August 4th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $159.78, for a total value 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 value of $3,116,340.00.
• On Monday, June 15th, Steve Ladd Huffman sold 18,000 shares of Reddit stock. The shares were sold at an average price of $178.26, for a total value of $3,208,680.00.

Reddit Stock Performance

RDDT traded up $13.41 during mid-day trading on Wednesday, reaching $158.05. 6,228,038 shares of the stock were exchanged, compared to its average volume of 5,513,509. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The stock has a market capitalization of $30.41 billion, a PE ratio of 36.76, a price-to-earnings-growth ratio of 0.49 and a beta of 2.02. The company has a 50 day moving average price of $170.88 and a two-hundred day moving average price of $158.72.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. The firm’s revenue for the quarter was up 61.0% on a year-over-year basis. Sell-side analysts expect that Reddit Inc. will post 5.27 EPS for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have recently weighed in on RDDT. Piper Sandler restated an “overweight” rating and issued a $195.00 target price (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Roth Capital reaffirmed a “neutral” rating and set a $145.00 price target on shares of Reddit in a research report on Monday, August 3rd. Oppenheimer dropped their price target on Reddit from $225.00 to $200.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Zacks Research downgraded Reddit from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 25th. Finally, DA Davidson reaffirmed a “buy” rating and set a $200.00 target price on shares of Reddit in a research report on Thursday, July 23rd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $221.10.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Sunbelt Securities Inc. increased its position in shares of Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares during the period. Ascentis Independent Advisors bought a new position in Reddit in the first quarter valued at $30,000. EverSource Wealth Advisors LLC raised its holdings in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after buying an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. purchased a new position in shares of Reddit during the second quarter worth approximately $35,000. Finally, Geneos Wealth Management Inc. raised its position in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after purchasing an additional 286 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.