Reddit (NYSE:RDDT) Stock Price Down 8.2% on Insider Selling

Shares of Reddit Inc. (NYSE:RDDT) were down 8.2% during mid-day trading on Thursday following insider selling activity. The company traded as low as $128.11 and last traded at $128.23. Approximately 2,432,877 shares traded hands during trading, a decline of 56% from the average daily volume of 5,503,202 shares. The stock had previously closed at $139.63.

Specifically, CTO Christopher Brian Slowe sold 9,500 shares of the business’s stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $141.28, for a total value of $1,342,160.00. Following the sale, the chief technology officer directly owned 38,413 shares in the company, valued at approximately $5,426,988.64. The trade was a 19.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Jennifer L. Wong sold 5,658 shares of the company’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $143.42, for a total transaction of $811,470.36. Following the completion of the sale, the chief operating officer directly owned 36,000 shares of the company’s stock, valued at $5,163,120. The trade was a 13.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other news, COO Jennifer L. Wong sold 33,507 shares of Reddit stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total value of $4,805,238.87. Following the transaction, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at $156,094,757.91. The trade was a 2.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Weiss Ratings reissued a “hold (c-)” rating on shares of Reddit in a research note on Monday, December 29th. Truist Financial upped their price target on Reddit from $270.00 to $275.00 and gave the company a “buy” rating in a report on Friday, February 6th. Piper Sandler reiterated an “overweight” rating and set a $205.00 price objective (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. Zacks Research lowered Reddit from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. Finally, UBS Group set a $265.00 target price on Reddit in a report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $242.19.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: AI and ad-product momentum: analysts and coverage note Reddit’s new AI tools and ad formats are helping engagement and ad revenue growth after a 69.7% year-over-year revenue jump, supporting the company’s longer-term monetization case. RDDT’s AI Tools Gain Traction
• Positive Sentiment: Product/verification moves could improve ad quality and trust: Reddit is rolling out age and human verification features (optional verified profiles, regional age checks, potential biometric options) that may help brand safety and ad buyer confidence. Reddit introduces new age and human verification measures
• Neutral Sentiment: Wall Street stance is mixed-but-leaning-positive: many analysts maintain Buy ratings and several firms have raised or reiterated targets, giving the stock some institutional support even as opinions and targets vary. Is Reddit Inc. (RDDT) a Buy?
• Negative Sentiment: Executive share sales pressured sentiment: recent, repeated insider sales by the CTO and other reports of large executive disposals have spooked investors and been tied to sharp intraday moves. Reddit (RDDT) Stock Plummets 10% Following Major Executive Share Sales
• Negative Sentiment: Legal/sector headwinds and technical selling: coverage links Reddit’s weakness to a social-media “addiction” trial ruling and correlated selloff across social-media peers, plus the stock falling below short-term moving averages, which amplifies selling. Why Reddit (RDDT) shares are sliding today
• Negative Sentiment: Broader tech/market weakness: Nasdaq and sector declines are applying downward pressure on growth/tech names, adding to Reddit’s near-term volatility. Why Reddit Shares Are Trending Lower On Thursday?

Reddit Trading Down 4.3%

The firm has a market cap of $23.26 billion, a PE ratio of 46.47, a P/E/G ratio of 0.93 and a beta of 2.40. The company’s 50-day moving average is $155.67 and its 200 day moving average is $198.89.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, February 5th. The company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The firm had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same quarter last year, the business posted $0.36 EPS. The company’s revenue was up 69.7% on a year-over-year basis. On average, research analysts predict that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Raiffeisen Bank International AG acquired a new stake in Reddit during the 3rd quarter worth about $25,000. GW&K Investment Management LLC purchased a new position in Reddit during the 3rd quarter valued at about $30,000. Cornerstone Planning Group LLC increased its holdings in shares of Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company’s stock valued at $31,000 after purchasing an additional 135 shares during the period. LOM Asset Management Ltd purchased a new stake in shares of Reddit in the fourth quarter worth approximately $33,000. Finally, Noble Wealth Management PBC purchased a new stake in shares of Reddit in the fourth quarter worth approximately $34,000.

About Reddit

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.