Reddit (NYSE:RDDT) Shares Down 6.2% on Insider Selling

Reddit, Inc. (NYSE:RDDT)’s share price fell 6.2% during trading on Wednesday following insider selling activity. The stock traded as low as $117.87 and last traded at $117.68. 1,256,043 shares traded hands during trading, a decline of 77% from the average session volume of 5,440,697 shares. The stock had previously closed at $125.43.

Specifically, CTO Christopher Brian Slowe sold 11,000 shares of the business’s stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $124.08, for a total value of $1,364,880.00. Following the completion of the sale, the chief technology officer now directly owns 281,213 shares in the company, valued at approximately $34,892,909.04. The trade was a 3.76 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Andrew Vollero sold 100,000 shares of the stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $124.08, for a total value of $12,408,000.00. Following the transaction, the chief financial officer now owns 499,295 shares in the company, valued at approximately $61,952,523.60. This trade represents a 16.69 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

RDDT has been the subject of several recent analyst reports. Roth Capital downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 22nd. Piper Sandler upped their price target on shares of Reddit from $210.00 to $220.00 and gave the company an “overweight” rating in a report on Friday, February 21st. The Goldman Sachs Group raised their price target on Reddit from $105.00 to $176.00 and gave the company a “neutral” rating in a research report on Tuesday, January 14th. Needham & Company LLC reissued a “buy” rating and set a $220.00 price objective on shares of Reddit in a research report on Friday, March 21st. Finally, Raymond James lowered their target price on Reddit from $250.00 to $200.00 and set a “strong-buy” rating on the stock in a report on Wednesday, March 12th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Reddit currently has a consensus rating of “Moderate Buy” and a consensus target price of $167.86.

Reddit Trading Down 8.2 %

The business’s fifty day moving average price is $167.31 and its 200 day moving average price is $136.36. The company has a market capitalization of $19.96 billion and a P/E ratio of -14.27.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Wednesday, February 12th. The company reported $0.36 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.12. Reddit had a negative net margin of 37.25% and a negative return on equity of 24.71%. Equities research analysts anticipate that Reddit, Inc. will post 1.12 EPS for the current year.

Institutional Trading of Reddit

Several institutional investors have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. raised its stake in Reddit by 194.8% during the third quarter. Charles Schwab Investment Management Inc. now owns 503,321 shares of the company’s stock worth $33,179,000 after acquiring an additional 332,604 shares in the last quarter. Cerity Partners LLC bought a new stake in shares of Reddit in the 3rd quarter worth about $446,000. Kingsview Wealth Management LLC acquired a new stake in shares of Reddit during the 3rd quarter worth about $251,000. Daiwa Securities Group Inc. bought a new position in Reddit during the 3rd quarter valued at about $85,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Reddit in the third quarter valued at about $1,053,000.

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.