Key Points
- Reddit CTO Christopher Brian Slowe sold 19,036 shares on Feb. 23 at an average of $144.05 for about $2.74M, trimming his stake by 9.33% after multiple large sales since December.
- Reddit beat Q4 estimates with $1.24 EPS (vs. $0.96) and revenue of $725.6M (up 69.7% YoY), showing strong top‑line growth and margin expansion.
- Near‑term risks include clustered insider selling and a UK regulator fine of ~£14.47M (~$20M), while analysts remain mixed — consensus rating “Moderate Buy” with a $238.78 average price target.
Reddit Inc. (NYSE:RDDT - Get Free Report) CAO Michelle Marie Reynolds sold 2,291 shares of the company's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $143.59, for a total transaction of $328,964.69. Following the transaction, the chief accounting officer owned 17,133 shares in the company, valued at approximately $2,460,127.47. The trade was a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.
Michelle Marie Reynolds also recently made the following trade(s):
- On Tuesday, December 9th, Michelle Marie Reynolds sold 11,249 shares of Reddit stock. The stock was sold at an average price of $232.95, for a total transaction of $2,620,454.55.
Reddit Price Performance
RDDT opened at $142.04 on Wednesday. The firm has a 50 day simple moving average of $200.71 and a 200 day simple moving average of $212.63. Reddit Inc. has a fifty-two week low of $79.75 and a fifty-two week high of $282.95. The company has a market cap of $27.14 billion, a price-to-earnings ratio of 54.21, a price-to-earnings-growth ratio of 1.06 and a beta of 2.17.
Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.28. The firm had revenue of $725.61 million for the quarter, compared to analysts' expectations of $665.80 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The business's revenue for the quarter was up 69.7% on a year-over-year basis. During the same period last year, the firm earned $0.36 earnings per share. As a group, analysts expect that Reddit Inc. will post 1.12 EPS for the current year.
Analysts Set New Price Targets
A number of equities research analysts recently commented on the company. Wells Fargo & Company set a $196.00 price objective on Reddit in a report on Monday, February 9th. Bank of America upped their price target on Reddit from $180.00 to $210.00 and gave the company a "neutral" rating in a research note on Friday, October 31st. Cantor Fitzgerald cut their price target on shares of Reddit from $240.00 to $170.00 and set a "neutral" rating on the stock in a research report on Friday, February 6th. UBS Group set a $265.00 price objective on shares of Reddit in a report on Tuesday, January 13th. Finally, China Renaissance assumed coverage on shares of Reddit in a report on Tuesday, December 9th. They issued a "buy" rating and a $300.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and a consensus price target of $238.78.
Check Out Our Latest Report on RDDT
Key Headlines Impacting Reddit
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: Q4 earnings beat / director buy — analysts and commentators are highlighting Reddit's post‑earnings momentum and a director purchase that followed the report, reinforcing the thesis of accelerating ad revenue and improving margins. Reddit Valuation Check After Earnings Beat And Director Share Purchase
- Positive Sentiment: Zacks and other bulls point to surging ad revenue, rising ARPU and AI-driven ad products (Max campaigns) as competitive advantages vs. peers like Snap, supporting upside if ad growth continues. Reddit vs. Snap: Which Social Media Ad Stock Has an Edge Now?
- Positive Sentiment: Analyst/upbeat op‑eds — Seeking Alpha pieces and a recent upgrade argue RDDT is a buy after the earnings beat, citing strong revenue growth, margin expansion and product improvements that could deliver continued user and monetization gains. Reddit: The Buying Opportunity I Have Been Waiting For (Rating Upgrade)
- Neutral Sentiment: Market chatter / trade flows — a market commentator mentioned Reddit as part of a software-buying theme, which can attract short‑term traders but is not a company-specific catalyst. RDDT, FTNT, CLBT & PLTR to Lead "Rip-Your-Face-Off" Software Rally?
- Negative Sentiment: Multiple insider sales this week from senior execs (CTO Christopher Slowe, COO Jennifer Wong, CAO Michelle Reynolds and others) totaling millions of dollars of stock sold — investors often view clustered insider selling as a near‑term negative signal on sentiment or liquidity needs. SEC Form 4 (example insider sale)
- Negative Sentiment: Regulatory fine in the UK — the Information Commissioner's Office fined Reddit ~£14.47m (~$19.5–20m) for children's privacy failures. The fine is material and adds regulatory/legal overhang and execution risk in international markets. UK privacy watchdog fines Reddit $20 million
- Negative Sentiment: Valuation skepticism — contrarian commentaries argue Reddit's valuation remains stretched despite earnings momentum, which can cap near‑term upside if growth expectations cool. Reddit's Valuation Makes No Sense
Institutional Trading of Reddit
A number of large investors have recently bought and sold shares of RDDT. Pacer Advisors Inc. lifted its stake in Reddit by 64.2% in the fourth quarter. Pacer Advisors Inc. now owns 318,153 shares of the company's stock valued at $73,134,000 after buying an additional 124,394 shares in the last quarter. Floyd Financial Group LLC bought a new stake in shares of Reddit during the fourth quarter worth $1,216,000. Compound Planning Inc. raised its holdings in shares of Reddit by 23.4% during the fourth quarter. Compound Planning Inc. now owns 1,624 shares of the company's stock worth $373,000 after acquiring an additional 308 shares during the period. Invesco Ltd. lifted its position in Reddit by 36.7% in the 4th quarter. Invesco Ltd. now owns 2,033,626 shares of the company's stock valued at $467,470,000 after acquiring an additional 545,685 shares in the last quarter. Finally, Evansbrook LLC bought a new stake in Reddit in the 4th quarter valued at $615,000.
Reddit Company Profile
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Get Free Report)
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.
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