Reddit (NYSE:RDDT) Shares Down 3.6% – Time to Sell?

Shares of Reddit Inc. (NYSE:RDDT) traded down 3.6% on Wednesday . The company traded as low as $212.30 and last traded at $210.6370. 2,172,889 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 7,225,902 shares. The stock had previously closed at $218.48.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Reddit in a research report on Tuesday. Raymond James Financial reissued a “strong-buy” rating and issued a $250.00 price target (up from $225.00) on shares of Reddit in a report on Monday, October 20th. Wall Street Zen upgraded shares of Reddit from a “hold” rating to a “buy” rating in a report on Sunday, September 7th. The Goldman Sachs Group restated a “neutral” rating and set a $236.00 price target on shares of Reddit in a research note on Tuesday, October 14th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Reddit from $190.00 to $227.00 and gave the company a “neutral” rating in a report on Friday, October 31st. Three analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $226.33.

Reddit Price Performance

The firm has a market capitalization of $39.56 billion, a PE ratio of 120.04, a P/E/G ratio of 2.15 and a beta of 2.14. The company’s fifty day simple moving average is $209.62 and its 200-day simple moving average is $181.44.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million for the quarter, compared to analysts’ expectations of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.Reddit’s revenue was up 67.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.16 EPS. Reddit has set its Q4 2025 guidance at EPS. Analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In other Reddit news, CTO Christopher Brian Slowe sold 24,000 shares of the firm’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $192.72, for a total value of $4,625,280.00. Following the completion of the sale, the chief technology officer owned 175,694 shares of the company’s stock, valued at approximately $33,859,747.68. This trade represents a 12.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction on Tuesday, September 30th. The stock was sold at an average price of $229.10, for a total transaction of $4,123,800.00. Following the transaction, the chief executive officer directly owned 494,104 shares in the company, valued at approximately $113,199,226.40. This trade represents a 3.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 424,370 shares of company stock worth $89,848,384. 34.25% of the stock is owned by corporate insiders.

Institutional Trading of Reddit

Large investors have recently added to or reduced their stakes in the stock. CWM LLC increased its stake in Reddit by 100.0% during the first quarter. CWM LLC now owns 256 shares of the company’s stock valued at $27,000 after purchasing an additional 128 shares during the last quarter. IFP Advisors Inc lifted its stake in Reddit by 89.5% in the first quarter. IFP Advisors Inc now owns 870 shares of the company’s stock valued at $91,000 after acquiring an additional 411 shares during the last quarter. Avantax Advisory Services Inc. bought a new stake in Reddit in the first quarter worth approximately $228,000. Cetera Investment Advisers increased its stake in shares of Reddit by 156.4% during the 1st quarter. Cetera Investment Advisers now owns 18,607 shares of the company’s stock worth $1,952,000 after purchasing an additional 11,349 shares during the last quarter. Finally, Skandinaviska Enskilda Banken AB publ acquired a new stake in shares of Reddit in the 1st quarter valued at $997,000.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.