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

Reddit Inc. (NYSE:RDDT)’s share price gapped down prior to trading on Tuesday following insider selling activity. 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.

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

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on RDDT shares. Zacks Research cut shares of Reddit from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Sanford C. Bernstein raised their target price on shares of Reddit from $190.00 to $210.00 and gave the stock a “market perform” rating in a report on Friday, October 31st. Wells Fargo & Company raised their target price on Reddit from $186.00 to $207.00 and gave the stock an “equal weight” rating in a research note on Monday, January 12th. Raymond James Financial reiterated a “strong-buy” rating and issued a $250.00 price target (up previously from $225.00) on shares of Reddit in a report on Monday, October 20th. Finally, JMP Securities reaffirmed a “market outperform” rating and set a $300.00 price objective on shares of Reddit in a research report on Friday, October 3rd. Two research 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 given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $245.18.

Reddit Price Performance

The stock’s 50-day simple moving average is $225.99 and its two-hundred day simple moving average is $213.97. The firm has a market capitalization of $36.70 billion, a P/E ratio of 111.32, a price-to-earnings-growth ratio of 1.49 and a beta of 2.17.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million during 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 quarterly revenue was up 67.9% on a year-over-year basis. During the same period last year, the company posted $0.16 earnings per share. On average, analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Raiffeisen Bank International AG bought a new position in Reddit in the third quarter worth about $25,000. GW&K Investment Management LLC purchased a new position in Reddit during the third quarter valued at approximately $30,000. Cornerstone Planning Group LLC lifted its stake 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 acquired a new position in shares of Reddit in the fourth quarter worth about $33,000. Finally, Noble Wealth Management PBC acquired a new position in Reddit in the 4th quarter worth about $34,000.

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.