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

Shares of Reddit, Inc. (NYSE:RDDT) gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $113.23, but opened at $104.89. Reddit shares last traded at $108.83, with a volume of 4,288,449 shares trading hands.

Specifically, CEO Steve Ladd Huffman sold 124,408 shares of the firm’s stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $114.98, for a total value of $14,304,431.84. Following the completion of the transaction, the chief executive officer now directly owns 577,013 shares of the company’s stock, valued at $66,344,954.74. This trade represents a 17.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analyst Ratings Changes

RDDT has been the subject of a number of research analyst reports. Bank of America dropped their price target on Reddit from $190.00 to $110.00 and set a “neutral” rating for the company in a research report on Wednesday, April 9th. Citigroup raised their target price on shares of Reddit from $150.00 to $158.00 and gave the company a “buy” rating in a research note on Friday, May 2nd. JMP Securities reissued a “market outperform” rating and issued a $180.00 price target on shares of Reddit in a research note on Friday, May 2nd. Piper Sandler reissued an “overweight” rating and issued a $150.00 price target (up previously from $140.00) on shares of Reddit in a report on Friday, May 2nd. Finally, B. Riley restated a “buy” rating and set a $220.00 price objective (down previously from $222.00) on shares of Reddit in a research report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, eight have given a hold rating, twelve have given a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $141.36.

Reddit Stock Performance

The firm has a market capitalization of $19.46 billion, a PE ratio of -13.64, a P/E/G ratio of 4.72 and a beta of 2.90. The stock’s 50-day simple moving average is $108.63 and its 200-day simple moving average is $145.59.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.11. The company had revenue of $392.36 million for the quarter, compared to analysts’ expectations of $370.55 million. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. Reddit’s quarterly revenue was up 61.5% on a year-over-year basis. During the same quarter in the previous year, the company earned ($8.19) earnings per share. As a group, analysts predict that Reddit, Inc. will post 1.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RDDT. Vanguard Group Inc. grew its stake in Reddit by 184.2% in the fourth quarter. Vanguard Group Inc. now owns 9,181,390 shares of the company’s stock worth $1,500,606,000 after purchasing an additional 5,950,909 shares during the period. Jennison Associates LLC bought a new stake in shares of Reddit during the 4th quarter valued at $494,861,000. Alliancebernstein L.P. grew its position in shares of Reddit by 103.0% in the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company’s stock worth $593,733,000 after buying an additional 2,871,232 shares during the period. Brooklyn FI LLC purchased a new stake in shares of Reddit in the 4th quarter worth about $303,082,000. Finally, GQG Partners LLC bought a new position in shares of Reddit in the 4th quarter worth about $271,539,000.

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.