Insider Selling: Reddit (NYSE:RDDT) COO Sells $9,033,000.00 in Stock

Reddit Inc. (NYSE:RDDT) COO Jennifer Wong sold 60,000 shares of the stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total value of $9,033,000.00. Following the transaction, the chief operating officer owned 1,012,226 shares in the company, valued at $152,390,624.30. This represents a 5.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Reddit Trading Down 2.1%

NYSE:RDDT traded down $3.39 during trading hours on Friday, reaching $155.97. 3,835,703 shares of the company were exchanged, compared to its average volume of 5,371,640. The firm has a market cap of $30.01 billion, a PE ratio of 36.27, a price-to-earnings-growth ratio of 0.69 and a beta of 2.05. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $263.50. The stock’s 50-day moving average is $154.34 and its 200-day moving average is $161.43.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.30. The business had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The business’s quarterly revenue was up 61.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.45 earnings per share. As a group, research analysts anticipate that Reddit Inc. will post 5.27 EPS for the current year.

Institutional Investors Weigh In On Reddit

Several hedge funds and other institutional investors have recently made changes to their positions in RDDT. Sunbelt Securities Inc. lifted its position in Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after buying an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Reddit by 48.1% in 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 stake in Reddit in the 2nd quarter valued at $35,000. Ascentis Independent Advisors purchased a new stake in Reddit in the 1st quarter valued at $30,000. Finally, Hager Investment Management Services LLC increased its stake in shares of Reddit by 522.2% in the 2nd quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock worth $49,000 after acquiring an additional 235 shares during the last quarter.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on RDDT shares. BNP Paribas Exane assumed coverage on shares of Reddit in a research note on Friday, September 18th. They set a “neutral” rating and a $180.00 target price on the stock. JPMorgan Chase & Co. reduced their target price on shares of Reddit from $200.00 to $185.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Oppenheimer reduced their target price on shares of Reddit from $225.00 to $200.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $200.00 price target on shares of Reddit in a research note on Friday, July 31st. Finally, Needham & Company LLC restated a “buy” rating and set a $300.00 price target on shares of Reddit in a research report on Friday, October 9th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $219.29.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: CNBC’s Jim Cramer recommended buying Reddit, describing the shares as “inexpensive.” The endorsement could improve retail-investor sentiment and draw attention to Reddit’s valuation. Jim Cramer recommends Reddit
• Neutral Sentiment: Reddit will report third-quarter results on Thursday, October 29. Investors are likely to focus on advertising growth, user trends and management’s outlook following the company’s previous quarterly revenue increase of 61% year over year. Reddit third-quarter earnings announcement
• Neutral Sentiment: Goldman Sachs maintained its Hold rating on RDDT, indicating that the firm does not see a sufficiently compelling risk-reward profile at current levels. Goldman Sachs maintains Hold rating
• Negative Sentiment: CEO Steve Huffman sold 17,308 shares for approximately $2.74 million, reducing his direct holdings by 4.89%. COO Jennifer Wong separately sold 60,000 shares for about $9.03 million, reducing her position by 5.60%. Both transactions were made under pre-arranged Rule 10b5-1 plans, which lessens—but does not eliminate—the negative signaling effect of insider selling. Reddit insider sales

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.