Reddit (NYSE:RDDT) Shares Down 6.2% Following Insider Selling

Reddit, Inc. (NYSE:RDDT)’s stock price dropped 6.2% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $117.87 and last traded at $117.68. Approximately 1,256,043 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 5,440,697 shares. The stock had previously closed at $125.43.

Specifically, CTO Christopher Brian Slowe sold 11,000 shares of Reddit stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $124.08, for a total transaction of $1,364,880.00. Following the sale, the chief technology officer now directly owns 281,213 shares of the company’s stock, valued at approximately $34,892,909.04. This trade represents a 3.76 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Andrew Vollero sold 100,000 shares of the company’s stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $124.08, for a total value of $12,408,000.00. Following the completion of the transaction, the chief financial officer now directly owns 499,295 shares of the company’s stock, valued at $61,952,523.60. This represents a 16.69 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

RDDT has been the topic of a number of research reports. Morgan Stanley boosted their target price on shares of Reddit from $200.00 to $210.00 and gave the stock an “overweight” rating in a report on Thursday, February 13th. Needham & Company LLC reissued a “buy” rating and issued a $220.00 price objective on shares of Reddit in a research note on Friday, March 21st. Piper Sandler raised their target price on Reddit from $210.00 to $220.00 and gave the stock an “overweight” rating in a research report on Friday, February 21st. B. Riley lifted their target price on Reddit from $112.00 to $187.00 and gave the stock a “buy” rating in a report on Tuesday, January 14th. Finally, JMP Securities upped their price target on Reddit from $190.00 to $200.00 and gave the company a “market outperform” rating in a research report on Thursday, February 13th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $167.86.

Reddit Trading Down 8.2 %

The stock’s 50-day moving average price is $167.31 and its 200-day moving average price is $136.36. The company has a market cap of $19.96 billion and a P/E ratio of -14.27.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.12. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. On average, research analysts anticipate that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Reddit

A number of large investors have recently modified their holdings of the company. FMR LLC lifted its stake in shares of Reddit by 7.5% in the fourth quarter. FMR LLC now owns 13,070,780 shares of the company’s stock valued at $2,136,288,000 after buying an additional 913,189 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Reddit by 184.2% in the 4th quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock worth $1,500,606,000 after acquiring an additional 5,950,909 shares during the last quarter. Jennison Associates LLC bought a new position in Reddit in the 4th quarter valued at about $494,861,000. Holocene Advisors LP boosted its stake in Reddit by 177.6% during the 3rd quarter. Holocene Advisors LP now owns 3,005,977 shares of the company’s stock valued at $198,154,000 after purchasing an additional 1,923,109 shares during the last quarter. Finally, Alliancebernstein L.P. increased its holdings in Reddit by 1,011.1% during the 4th quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company’s stock worth $455,795,000 after purchasing an additional 2,537,768 shares in the last quarter.

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.