Reddit (NYSE:RDDT) Stock Price Down 6.1% – What’s Next?

Reddit Inc. (NYSE:RDDT)’s share price fell 6.1% during mid-day trading on Friday . The stock traded as low as $161.37 and last traded at $162.6360. 600,592 shares changed hands during trading, a decline of 89% from the average session volume of 5,258,709 shares. The stock had previously closed at $173.26.

Wall Street Analysts Forecast Growth

RDDT has been the topic of several research reports. Jefferies Financial Group decreased their price target on shares of Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a research note on Tuesday, March 10th. Citizens Jmp decreased their price target on shares of Reddit from $250.00 to $240.00 and set a “market outperform” rating on the stock in a research note on Friday, May 1st. DA Davidson reissued a “buy” rating and set a $200.00 price target on shares of Reddit in a research note on Friday, May 1st. Wall Street Zen downgraded shares of Reddit from a “buy” rating to a “hold” rating in a research note on Sunday, May 10th. Finally, Citigroup reissued a “market outperform” rating on shares of Reddit in a research note on Tuesday, May 26th. Eighteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $230.75.

Reddit Price Performance

The stock has a market capitalization of $31.21 billion, a PE ratio of 46.32 and a beta of 1.91. The firm’s 50 day simple moving average is $157.38 and its 200 day simple moving average is $176.88.

Reddit (NYSE:RDDT) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. During the same period last year, the firm posted $0.13 earnings per share. The business’s revenue was up 69.1% compared to the same quarter last year. Analysts expect that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction on Friday, May 29th. The shares were sold at an average price of $174.13, for a total value of $3,134,340.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $65,092,231.82. The trade was a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $175,752,182.97. The trade was a 3.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 232,499 shares of company stock valued at $36,123,803 over the last three months. 28.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RDDT. Capital World Investors purchased a new position in shares of Reddit in the fourth quarter worth $1,293,258,000. Norges Bank purchased a new position in Reddit during the 4th quarter valued at $372,047,000. Vanguard Group Inc. increased its position in Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after purchasing an additional 1,401,293 shares during the period. Invesco Ltd. increased its position in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after purchasing an additional 1,201,237 shares during the period. Finally, State Street Corp increased its position in Reddit by 138.5% during the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company’s stock valued at $305,678,000 after purchasing an additional 1,178,890 shares during the period.

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.