Reddit (NYSE:RDDT) Stock Price Down 6% After Insider Selling

Reddit Inc. (NYSE:RDDT) shares were down 6% on Friday following insider selling activity. The company traded as low as $246.45 and last traded at $238.6680. Approximately 1,816,200 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 3,114,092 shares. The stock had previously closed at $253.95.

Specifically, insider Benjamin Seong Lee sold 27,930 shares of the company’s stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $260.08, for a total transaction of $7,264,034.40. Following the sale, the insider directly owned 62,608 shares in the company, valued at $16,283,088.64. This represents a 30.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Benjamin Seong Lee sold 3,320 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $260.22, for a total value of $863,930.40. Following the transaction, the insider directly owned 62,608 shares in the company, valued at approximately $16,291,853.76. This represents a 5.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In related news, CFO Andrew Vollero sold 500 shares of the stock in a transaction on Wednesday, January 7th. The stock was sold at an average price of $260.06, for a total transaction of $130,030.00. Following the sale, the chief financial officer owned 255,618 shares in the company, valued at approximately $66,476,017.08. This represents a 0.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on RDDT shares. Raymond James Financial reiterated a “strong-buy” rating and set a $250.00 price objective (up previously from $225.00) on shares of Reddit in a research report on Monday, October 20th. Piper Sandler reiterated an “overweight” rating on shares of Reddit in a report on Monday, December 1st. Weiss Ratings reissued a “hold (c-)” rating on shares of Reddit in a research report on Monday, December 29th. The Goldman Sachs Group reissued a “neutral” rating and issued a $236.00 price objective on shares of Reddit in a research note on Tuesday, October 14th. Finally, Zacks Research cut Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $232.58.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Third‑party product coverage widening Reddit’s visibility — Ahrefs added Reddit to its Brand Radar tracking (now covers YouTube, TikTok and Reddit), which can increase marketer awareness and make Reddit mentions more actionable for advertisers. This is a modest positive for ad monetization and brand measurement. Ahrefs Adds YouTube and Reddit Tracking to Brand Radar
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a “neutral” rating and a $240 price target (slightly below current levels). New coverage and a near‑term price target below the market can limit upside but doesn’t signal a change to Reddit’s long‑term growth story; it may contribute to cautious trader positioning. Analyst Coverage Note
• Negative Sentiment: Insider selling by CFO Andrew Vollero — filings show sales on Jan 6 (8,413 shares at ~$252.72) and Jan 7 (500 shares at ~$260.06). While the CFO still holds ~255k shares (valued in the tens of millions), the high‑profile insider sales — particularly the larger Jan 6 block — can send a negative near‑term signal to traders and may weigh on sentiment. Insider Selling: Reddit CFO Sells Shares
• Negative Sentiment: Reputational/ content‑risk coverage — a New York Times podcast discussed misuse of AI tools to push abusive/political content (context includes platforms and moderation challenges). Any spotlight on content or AI‑driven moderation failures can raise advertiser and regulatory concerns, pressuring sentiment until moderation/AI controls are clarified. Grok’s Undressing Scandal + Claude Code Capers

Reddit Trading Down 3.6%

The firm has a market capitalization of $46.37 billion, a P/E ratio of 140.64, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. The stock has a 50-day simple moving average of $218.41 and a two-hundred day simple moving average of $207.33.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.50 by $0.30. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The firm had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. During the same quarter last year, the firm posted $0.16 earnings per share. The business’s revenue for the quarter was up 67.9% on a year-over-year basis. As a group, research analysts expect that Reddit Inc. will post 1.12 EPS for the current year.

Institutional Investors Weigh In On Reddit

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in Reddit by 12.9% during the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after buying an additional 1,401,293 shares during the period. State Street Corp increased its holdings in shares of Reddit by 22.3% in the 3rd quarter. State Street Corp now owns 2,481,931 shares of the company’s stock valued at $570,819,000 after acquiring an additional 451,792 shares during the period. JPMorgan Chase & Co. raised its position in shares of Reddit by 7.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,051,175 shares of the company’s stock worth $308,846,000 after acquiring an additional 143,680 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Reddit by 72.1% during the 2nd quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company’s stock worth $299,044,000 after purchasing an additional 833,245 shares during the last quarter. Finally, Norges Bank bought a new stake in Reddit during the second quarter valued at about $294,254,000.

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.