Reddit (NYSE:RDDT) Shares Gap Down After Insider Selling

Shares of Reddit Inc. (NYSE:RDDT) gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $213.63, but opened at $203.14. Reddit shares last traded at $196.1060, with a volume of 2,123,760 shares.

Specifically, CTO Christopher Brian Slowe sold 14,000 shares of the business’s stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $212.61, for a total transaction of $2,976,540.00. Following the transaction, the chief technology officer directly owned 167,694 shares in the company, valued at approximately $35,653,421.34. The trade was a 7.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 12,008 shares of the stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total transaction of $2,710,565.84. Following the completion of the sale, the chief operating officer directly owned 50,124 shares of the company’s stock, valued at approximately $11,314,490.52. This trade represents a 19.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In related news, COO Jennifer L. Wong sold 27,159 shares of the stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total transaction of $6,130,601.07. Following the completion of the transaction, the chief operating officer owned 1,157,369 shares of the company’s stock, valued at approximately $261,252,904.37. This trade represents a 2.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Analysts Set New Price Targets

Several equities analysts have commented on RDDT shares. Truist Financial set a $270.00 price target on shares of Reddit in a research report on Friday, October 31st. Wall Street Zen lowered shares of Reddit from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. Guggenheim reaffirmed a “buy” rating and set a $245.00 price objective on shares of Reddit in a report on Friday. Royal Bank Of Canada restated a “sector perform” rating on shares of Reddit in a research report on Wednesday, October 1st. Finally, Citigroup boosted their price target on Reddit from $250.00 to $265.00 and gave the company a “buy” rating in a research report on Monday, November 3rd. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Reddit has a consensus rating of “Moderate Buy” and a consensus target price of $245.18.

Reddit Stock Down 9.3%

The company has a 50 day simple moving average of $225.99 and a 200 day simple moving average of $213.97. The company has a market capitalization of $36.70 billion, a price-to-earnings ratio of 111.32, a price-to-earnings-growth ratio of 1.49 and a beta of 2.17.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million during the quarter, compared to the consensus estimate of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company’s revenue was up 67.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.16 earnings per share. On average, research analysts forecast that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Reddit

Hedge funds have recently added to or reduced their stakes in the business. Huntington National Bank grew its holdings in shares of Reddit by 25.6% during the third quarter. Huntington National Bank now owns 270 shares of the company’s stock valued at $62,000 after purchasing an additional 55 shares during the last quarter. Roxbury Financial LLC boosted its holdings in shares of Reddit by 7.4% in the fourth quarter. Roxbury Financial LLC now owns 929 shares of the company’s stock valued at $214,000 after acquiring an additional 64 shares in the last quarter. Resona Asset Management Co. Ltd. boosted its stake in Reddit by 0.3% during the 2nd quarter. Resona Asset Management Co. Ltd. now owns 20,201 shares of the company’s stock valued at $3,023,000 after purchasing an additional 65 shares in the last quarter. AdvisorNet Financial Inc grew its holdings in Reddit by 2.8% during the third quarter. AdvisorNet Financial Inc now owns 2,464 shares of the company’s stock worth $567,000 after acquiring an additional 66 shares during the period. Finally, Kingswood Wealth Advisors LLC raised its holdings in shares of Reddit by 5.0% in the 3rd quarter. Kingswood Wealth Advisors LLC now owns 1,439 shares of the company’s stock worth $331,000 after purchasing an additional 69 shares in the last quarter.

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.