Reddit (NYSE:RDDT) COO Sells 60,000 Shares of Stock

Reddit Inc. (NYSE:RDDT) COO Jennifer Wong sold 60,000 shares of Reddit stock in a transaction dated 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 completion of the sale, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at $152,390,624.30. The trade was a 5.60% decrease in their ownership of the stock. The transaction 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 Price Performance

Shares of RDDT traded down $3.39 during trading hours on Friday, hitting $155.97. The stock had a trading volume of 3,835,703 shares, compared to its average volume of 5,371,640. The firm has a market capitalization of $30.01 billion, a PE ratio of 36.27, a PEG ratio of 0.69 and a beta of 2.05. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $263.50. The stock has a fifty day moving average price of $154.34 and a 200 day moving average price of $161.43.

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

Key Headlines Impacting Reddit

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

Analyst Ratings Changes

A number of analysts have weighed in on the company. Piper Sandler restated an “overweight” rating and set a $195.00 target price (down from $215.00) on shares of Reddit in a report on Friday, July 31st. DA Davidson dropped their target price on Reddit from $200.00 to $185.00 and set a “buy” rating on the stock in a research report on Friday, September 18th. UBS Group reiterated a “buy” rating on shares of Reddit in a report on Friday, July 31st. Roth Capital reissued a “neutral” rating and issued a $145.00 price target on shares of Reddit in a research report on Monday, August 3rd. Finally, Evercore reissued an “outperform” rating and issued a $265.00 price target on shares of Reddit in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $219.29.

Institutional Trading of Reddit

Several large investors have recently added to or reduced their stakes in RDDT. Sunbelt Securities Inc. grew its holdings 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 acquiring an additional 91 shares during the period. EverSource Wealth Advisors LLC grew its stake in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after purchasing an additional 64 shares during the period. Beacon Investment Advisory Services Inc. acquired a new stake in shares of Reddit during the 2nd quarter worth approximately $35,000. Ascentis Independent Advisors acquired a new stake in shares of Reddit during the 1st quarter worth approximately $30,000. Finally, Hager Investment Management Services LLC increased its holdings in shares of Reddit by 522.2% during the 2nd quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock valued at $49,000 after purchasing an additional 235 shares in the last quarter.

Reddit Company Profile

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.