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

Reddit Inc. (NYSE:RDDT)’s share price gapped down before the market opened on Tuesday after an insider sold shares in the company. The stock had previously closed at $213.63, but opened at $203.14. Reddit shares last traded at $196.1060, with a volume of 2,123,760 shares changing hands.

Specifically, CTO Christopher Brian Slowe sold 14,000 shares of the business’s stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $212.61, for a total transaction of $2,976,540.00. Following the sale, the chief technology officer owned 167,694 shares of the company’s stock, valued at $35,653,421.34. The trade was a 7.71% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Jennifer L. Wong sold 12,008 shares of the company’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total value of $2,710,565.84. Following the sale, the chief operating officer owned 50,124 shares in the company, valued at approximately $11,314,490.52. This represents a 19.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other news, COO Jennifer L. Wong sold 27,159 shares of the business’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $225.73, for a total transaction of $6,130,601.07. Following the completion of the transaction, the chief operating officer directly owned 1,157,369 shares in the company, valued at $261,252,904.37. The trade was a 2.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on RDDT shares. Argus set a $300.00 price objective on Reddit in a report on Friday, January 9th. Roth Mkm set a $210.00 price target on shares of Reddit in a research note on Friday, October 31st. Bank of America lifted their price objective on Reddit from $180.00 to $210.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $285.00 price objective on shares of Reddit in a research report on Tuesday, January 20th. Finally, Citigroup upped their price objective on shares of Reddit from $250.00 to $265.00 and gave the company a “buy” rating in a research note on Monday, November 3rd. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $245.18.

Reddit Stock Performance

The stock has a 50-day moving average of $226.31 and a two-hundred day moving average of $214.18. The company has a market cap of $36.67 billion, a P/E ratio of 111.20, a price-to-earnings-growth ratio of 1.36 and a beta of 2.17.

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

Institutional Investors Weigh In On Reddit

Several institutional investors have recently modified their holdings of the business. NewEdge Advisors LLC lifted its position in Reddit by 143.3% during the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock valued at $837,000 after purchasing an additional 4,701 shares during the period. Empowered Funds LLC bought a new position in shares of Reddit during the 1st quarter valued at approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Reddit by 106.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock valued at $22,759,000 after purchasing an additional 111,780 shares during the period. Focus Partners Wealth raised its holdings in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock valued at $1,073,000 after acquiring an additional 2,965 shares during the period. Finally, Geneos Wealth Management Inc. grew its position in shares of Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after purchasing an additional 286 shares in the last quarter.

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.