Reddit (NYSE:RDDT) Trading Down 4.6% – Time to Sell?

Reddit Inc. (NYSE:RDDT) was down 4.6% on Tuesday . The stock traded as low as $246.39 and last traded at $245.83. Approximately 1,218,465 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 7,621,047 shares. The stock had previously closed at $257.56.

Wall Street Analyst Weigh In

Several equities research analysts have commented on RDDT shares. Needham & Company LLC raised their price target on shares of Reddit from $215.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, September 15th. Bank of America increased their target price on shares of Reddit from $130.00 to $150.00 and gave the company a “neutral” rating in a research note on Wednesday, July 30th. JMP Securities boosted their price objective on Reddit from $225.00 to $300.00 and gave the stock a “market outperform” rating in a report on Thursday, September 18th. Roth Capital lifted their price target on Reddit from $130.00 to $145.00 and gave the company a “neutral” rating in a report on Monday, July 21st. Finally, Argus began coverage on shares of Reddit in a research report on Monday, August 18th. They issued a “buy” rating and a $250.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Reddit currently has an average rating of “Moderate Buy” and an average target price of $197.88.

Reddit Stock Down 7.8%

The company has a market capitalization of $44.45 billion, a P/E ratio of 215.05, a P/E/G ratio of 4.16 and a beta of 2.38. The firm has a fifty day simple moving average of $210.50 and a 200-day simple moving average of $150.13.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%.Reddit’s quarterly revenue was up 77.9% on a year-over-year basis. During the same period last year, the company earned ($0.06) earnings per share. Reddit has set its Q3 2025 guidance at EPS. On average, sell-side analysts predict that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other news, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $218.09, for a total value of $6,542,700.00. Following the completion of the sale, the chief financial officer directly owned 284,168 shares of the company’s stock, valued at $61,974,199.12. This represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Jennifer L. Wong sold 30,806 shares of Reddit stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $218.55, for a total value of $6,732,651.30. Following the transaction, the chief operating officer directly owned 1,326,709 shares in the company, valued at approximately $289,952,251.95. The trade was a 2.27% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 344,126 shares of company stock worth $71,345,839 in the last ninety days. 34.25% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Reddit

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Reddit by 154.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 105,180 shares of the company’s stock worth $17,191,000 after purchasing an additional 63,857 shares during the last quarter. Mackenzie Financial Corp bought a new position in Reddit during the fourth quarter valued at about $316,000. Integrated Advisors Network LLC bought a new position in Reddit during the fourth quarter valued at about $491,000. B. Riley Wealth Advisors Inc. purchased a new stake in Reddit during the fourth quarter worth about $2,716,000. Finally, Heck Capital Advisors LLC bought a new stake in Reddit in the fourth quarter worth about $125,000.

Reddit Company Profile

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.