Reddit (NYSE:RDDT) Shares Down 5.1% Following Insider Selling

Reddit, Inc. (NYSE:RDDT) shares were down 5.1% during trading on Wednesday following insider selling activity. The stock traded as low as $100.88 and last traded at $100.29. Approximately 1,727,077 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 5,946,626 shares. The stock had previously closed at $105.64.

Specifically, COO Jennifer L. Wong sold 33,333 shares of the company’s stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $113.38, for a total value of $3,779,295.54. Following the completion of the transaction, the chief operating officer now owns 1,466,119 shares in the company, valued at $166,228,572.22. This represents a 2.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Steve Ladd Huffman sold 124,408 shares of the business’s stock in a transaction on Thursday, May 15th. The shares were sold at an average price of $114.98, for a total transaction of $14,304,431.84. Following the completion of the sale, the chief executive officer now directly owns 577,013 shares in the company, valued at $66,344,954.74. This represents a 17.74% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

RDDT has been the topic of several recent research reports. Citigroup lifted their price target on Reddit from $150.00 to $158.00 and gave the company a “buy” rating in a research note on Friday, May 2nd. JPMorgan Chase & Co. decreased their price objective on Reddit from $185.00 to $110.00 and set a “neutral” rating for the company in a report on Tuesday, April 8th. Guggenheim reduced their price target on Reddit from $170.00 to $165.00 and set a “buy” rating for the company in a research report on Friday, May 2nd. Redburn Partners set a $75.00 price target on Reddit in a research report on Monday, March 17th. Finally, Truist Financial initiated coverage on shares of Reddit in a research report on Monday, April 7th. They issued a “buy” rating and a $150.00 price objective on the stock. One investment 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 company has an average rating of “Moderate Buy” and an average target price of $140.45.

Reddit Trading Up 2.9%

The firm has a market capitalization of $18.21 billion, a price-to-earnings ratio of -12.76, a P/E/G ratio of 4.72 and a beta of 2.90. The company’s 50 day moving average is $107.45 and its 200-day moving average is $145.18.

Reddit (NYSE:RDDT) last released its quarterly earnings data 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 firm had revenue of $392.36 million for the quarter, compared to analyst estimates of $370.55 million. Reddit had a negative return on equity of 24.71% and a negative net margin of 37.25%. The business’s revenue for the quarter was up 61.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($8.19) earnings per share. Research analysts expect that Reddit, Inc. will post 1.12 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Signaturefd LLC increased its holdings in shares of Reddit by 3.5% during the 1st quarter. Signaturefd LLC now owns 2,859 shares of the company’s stock worth $300,000 after acquiring an additional 97 shares during the last quarter. Proficio Capital Partners LLC boosted its position in Reddit by 2.1% during the fourth quarter. Proficio Capital Partners LLC now owns 5,908 shares of the company’s stock worth $966,000 after purchasing an additional 120 shares during the period. CWM LLC boosted its position in Reddit by 100.0% during the first quarter. CWM LLC now owns 256 shares of the company’s stock worth $27,000 after purchasing an additional 128 shares during the period. Farther Finance Advisors LLC boosted its position in Reddit by 148.5% during the fourth quarter. Farther Finance Advisors LLC now owns 246 shares of the company’s stock worth $40,000 after purchasing an additional 147 shares during the period. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in shares of Reddit by 12.5% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 1,323 shares of the company’s stock worth $139,000 after buying an additional 147 shares during the last quarter.

About Reddit

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.