Reddit (NYSE:RDDT) Trading Down 8.6% on Insider Selling

Reddit, Inc. (NYSE:RDDT)’s stock price traded down 8.6% during mid-day trading on Thursday following insider selling activity. The company traded as low as $172.20 and last traded at $173.43. 5,745,156 shares changed hands during mid-day trading, a decline of 0% from the average session volume of 5,750,339 shares. The stock had previously closed at $189.66.

Specifically, CEO Steve Ladd Huffman sold 14,000 shares of the business’s stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $187.78, for a total value of $2,628,920.00. Following the completion of the transaction, the chief executive officer now directly owns 614,394 shares in the company, valued at approximately $115,370,905.32. The trade was a 2.23 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 33,333 shares of the business’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $187.72, for a total transaction of $6,257,270.76. Following the completion of the transaction, the chief operating officer now owns 1,504,297 shares of the company’s stock, valued at $282,386,632.84. This represents a 2.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Bank of America boosted their target price on shares of Reddit from $180.00 to $190.00 and gave the stock a “neutral” rating in a report on Thursday, February 13th. Guggenheim assumed coverage on Reddit in a research note on Friday, December 20th. They set a “buy” rating and a $210.00 price target on the stock. Roth Mkm lowered Reddit from a “buy” rating to a “neutral” rating and boosted their price target for the stock from $116.00 to $195.00 in a research note on Wednesday, January 22nd. JPMorgan Chase & Co. boosted their price target on Reddit from $142.00 to $185.00 and gave the stock a “neutral” rating in a research note on Thursday, February 13th. Finally, Roth Capital lowered Reddit from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 22nd. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and an average price target of $175.95.

Reddit Price Performance

The company has a market capitalization of $30.08 billion and a price-to-earnings ratio of -21.51. The stock has a fifty day simple moving average of $184.13 and a 200-day simple moving average of $123.17.

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Mackenzie Financial Corp acquired a new position in Reddit in the fourth quarter valued at approximately $316,000. Cache Advisors LLC acquired a new position in shares of Reddit during the 4th quarter worth approximately $3,269,000. GF Fund Management CO. LTD. acquired a new position in shares of Reddit during the 4th quarter worth approximately $7,674,000. Fourth Dimension Wealth LLC acquired a new position in shares of Reddit during the 4th quarter worth approximately $49,000. Finally, Gordian Capital Singapore Pte Ltd acquired a new position in shares of Reddit during the 4th quarter worth approximately $149,000.

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.