Reddit (NYSE:RDDT) Trading Down 6.2% After Insider Selling

Shares of Reddit, Inc. (NYSE:RDDT) were down 6.2% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $117.87 and last traded at $117.68. Approximately 1,256,043 shares changed hands during mid-day trading, a decline of 77% from the average daily 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 firm’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 transaction, the chief technology officer now directly owns 281,213 shares in the company, valued at $34,892,909.04. This trade represents a 3.76 % decrease in their ownership of the stock. 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 completion of the sale, the chief financial officer now directly owns 499,295 shares of the company’s stock, valued at approximately $61,952,523.60. The trade was a 16.69 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on RDDT shares. Bank of America upped their price target on shares of Reddit from $180.00 to $190.00 and gave the stock a “neutral” rating in a research report on Thursday, February 13th. Citigroup reaffirmed an “outperform” rating on shares of Reddit in a report on Friday. The Goldman Sachs Group lifted their price target on Reddit from $105.00 to $176.00 and gave the stock a “neutral” rating in a report on Tuesday, January 14th. Roth Mkm downgraded 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 report on Wednesday, January 22nd. Finally, Loop Capital reaffirmed a “buy” rating and issued a $210.00 price objective on shares of Reddit in a research report on Tuesday, March 11th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $167.86.

Reddit Stock Down 8.2 %

The stock has a market capitalization of $19.96 billion and a price-to-earnings ratio of -14.27. The business’s 50 day simple moving average is $167.31 and its 200-day simple moving average is $136.36.

Reddit (NYSE:RDDT) last announced its quarterly earnings data 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 net margin of 37.25% and a negative return on equity of 24.71%. On average, analysts expect that Reddit, Inc. will post 1.12 earnings per share for the current year.

Institutional Trading of Reddit

Institutional investors and hedge funds have recently modified their holdings of the business. Plato Investment Management Ltd acquired a new position in Reddit during the fourth quarter worth about $27,000. EverSource Wealth Advisors LLC acquired a new position in Reddit during the 4th quarter worth approximately $28,000. Ridgewood Investments LLC lifted its stake in Reddit by 100.0% in the 4th quarter. Ridgewood Investments LLC now owns 200 shares of the company’s stock valued at $33,000 after purchasing an additional 100 shares during the last quarter. Farmers & Merchants Investments Inc. acquired a new stake in Reddit in the fourth quarter valued at approximately $33,000. Finally, Bogart Wealth LLC bought a new stake in shares of Reddit during the fourth quarter worth $33,000.

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.