Key Points
- Reddit COO Jennifer Wong sold 39,167 shares in a pre-arranged Rule 10b5-1 transaction at an average price of $158.52, totaling about $6.21 million. After the sale, she still owned more than 1.08 million shares.
- Reddit’s latest quarterly results were strong, with earnings of $1.01 per share versus expectations of $0.62 and revenue up 69.1% year over year to $663.41 million. The company also posted solid margins, and analysts now expect 4.83 EPS for the full year.
- Sentiment on the stock remains mixed but generally constructive: analysts maintain a “Moderate Buy” consensus with a $228.61 target price, while several recent notes highlight Reddit’s user growth, monetization gains, and strong fundamentals despite recent share-price weakness.
Reddit Inc. (NYSE:RDDT - Get Free Report) COO Jennifer Wong sold 39,167 shares of the business's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the sale, the chief operating officer owned 1,088,451 shares of the company's stock, valued at $172,541,252.52. This trade represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Reddit Trading Down 5.0%
Shares of NYSE RDDT opened at $147.12 on Thursday. The firm has a 50 day moving average of $147.25 and a 200 day moving average of $180.18. The firm has a market capitalization of $28.32 billion, a price-to-earnings ratio of 42.03 and a beta of 1.85. Reddit Inc. has a 12-month low of $94.89 and a 12-month high of $282.95.
Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The business had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. During the same quarter in the previous year, the firm earned $0.13 earnings per share. The company's revenue for the quarter was up 69.1% on a year-over-year basis. Sell-side analysts predict that Reddit Inc. will post 4.83 EPS for the current year.
Hedge Funds Weigh In On Reddit
Several hedge funds and other institutional investors have recently bought and sold shares of RDDT. Capital World Investors purchased a new position in shares of Reddit during the 4th quarter valued at approximately $1,293,258,000. Norges Bank acquired a new stake in Reddit in the 4th quarter valued at $372,047,000. Vanguard Group Inc. grew its stake in Reddit by 12.9% in the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after acquiring an additional 1,401,293 shares during the period. Invesco Ltd. grew its stake in Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after acquiring an additional 1,201,237 shares during the period. Finally, State Street Corp grew its stake in Reddit by 138.5% in the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after acquiring an additional 1,178,890 shares during the period.
Analyst Upgrades and Downgrades
Several equities analysts have recently commented on RDDT shares. Evercore reissued an "outperform" rating and issued a $290.00 target price on shares of Reddit in a report on Friday, February 6th. Zacks Research raised shares of Reddit from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. The Goldman Sachs Group reissued a "neutral" rating and issued a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Robert W. Baird set a $200.00 target price on shares of Reddit in a report on Friday, February 6th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $225.00 price target on shares of Reddit in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Reddit presently has an average rating of "Moderate Buy" and a consensus target price of $228.61.
Check Out Our Latest Research Report on Reddit
More Reddit News
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: Analysts and commentary remain constructive on Reddit’s fundamentals, pointing to rapid revenue growth, strong margins, and a net cash balance sheet as support for longer-term upside. Article Title
- Positive Sentiment: ARPU rose 44% in the first quarter, helped by advertiser growth, AI-driven ad tools, and international expansion, which signals improving monetization for the platform. Article Title
- Positive Sentiment: One bullish note argues Reddit remains oversold and attractive after a steep year-to-date decline, citing strong user growth, high gross margins, and a Rule of 40 score above 100. Article Title
- Neutral Sentiment: Needham reportedly remains bullish on Reddit, reinforcing the view that Wall Street still sees growth potential despite near-term volatility. Article Title
- Negative Sentiment: CEO Steve Huffman sold 18,000 shares in a pre-arranged 10b5-1 plan, which can weigh on sentiment even though the sale was not necessarily a change in outlook. Article Title
- Negative Sentiment: Technical selling has pushed RDDT below major moving averages, and traders appear to be reducing exposure to richly valued growth stocks in the current market environment. Article Title
About Reddit
(
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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