Key Points
- Reddit COO Jennifer Wong sold 60,000 shares for approximately $9.03 million at an average price of $150.55, reducing her direct holdings by 5.6%. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan.
- Reddit shares recently traded at $155.97, with a market capitalization of roughly $30 billion. The stock remains well below its one-year high of $263.50 but above its one-year low of $119.27.
- Reddit exceeded quarterly expectations, reporting $1.25 in EPS and $804.91 million in revenue, up 61% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $219.29, though Goldman Sachs retains a Hold rating.
Reddit Inc. (NYSE:RDDT - Get Free Report) COO Jennifer Wong sold 60,000 shares of Reddit stock in a transaction on Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the sale, the chief operating officer directly owned 1,012,226 shares of the company's stock, valued at $152,390,624.30. This represents a 5.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Reddit Price Performance
Shares of Reddit stock traded down $3.39 on Friday, hitting $155.97. 3,835,703 shares of the company's stock traded hands, compared to its average volume of 4,740,878. The firm's 50-day moving average price is $154.22 and its two-hundred day moving average price is $161.39. The stock has a market capitalization of $30.01 billion, a PE ratio of 36.27, a price-to-earnings-growth ratio of 0.74 and a beta of 2.05. Reddit Inc. has a one year low of $119.27 and a one year high of $263.50.
Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company had revenue of $804.91 million for the quarter, compared to the consensus estimate of $731.00 million. During the same quarter in the prior year, the business posted $0.45 EPS. The firm's quarterly revenue was up 61.0% on a year-over-year basis. On average, analysts forecast that Reddit Inc. will post 5.27 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Reddit
Several institutional investors and hedge funds have recently made changes to their positions in the company. State Street Corp increased its position in shares of Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock valued at $517,197,000 after buying an additional 237,523 shares in the last quarter. Wellington Management Group LLP raised its stake in Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock worth $271,572,000 after buying an additional 280,030 shares during the period. DSM Capital Partners LLC lifted its holdings in Reddit by 5.3% during the first quarter. DSM Capital Partners LLC now owns 848,206 shares of the company's stock worth $114,211,000 after acquiring an additional 42,808 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Reddit by 8.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company's stock worth $83,647,000 after acquiring an additional 39,540 shares in the last quarter. Finally, Pacer Advisors Inc. grew 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 acquiring an additional 124,394 shares during the period.
Trending Headlines about Reddit
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: CNBC’s Jim Cramer recommended buying Reddit, describing the shares as “inexpensive.” The endorsement could improve retail-investor sentiment and draw attention to Reddit’s valuation. Jim Cramer recommends Reddit
- Neutral Sentiment: Reddit will report third-quarter results on Thursday, October 29. Investors are likely to focus on advertising growth, user trends and management’s outlook following the company’s previous quarterly revenue increase of 61% year over year. Reddit third-quarter earnings announcement
- Neutral Sentiment: Goldman Sachs maintained its Hold rating on RDDT, indicating that the firm does not see a sufficiently compelling risk-reward profile at current levels. Goldman Sachs maintains Hold rating
- Negative Sentiment: CEO Steve Huffman sold 17,308 shares for approximately $2.74 million, reducing his direct holdings by 4.89%. COO Jennifer Wong separately sold 60,000 shares for about $9.03 million, reducing her position by 5.60%. Both transactions were made under pre-arranged Rule 10b5-1 plans, which lessens—but does not eliminate—the negative signaling effect of insider selling. Reddit insider sales
Analyst Ratings Changes
Several equities analysts have weighed in on RDDT shares. Guggenheim reissued a "buy" rating on shares of Reddit in a research note on Wednesday, September 16th. Needham & Company LLC restated a "buy" rating and set a $300.00 target price on shares of Reddit in a research report on Friday, October 9th. Wedbush lowered their price target on Reddit from $250.00 to $221.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. DA Davidson cut their price target on shares of Reddit from $200.00 to $185.00 and set a "buy" rating on the stock in a research report on Friday, September 18th. Finally, Zacks Research downgraded shares of Reddit from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 25th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and an average target price of $219.29.
Check Out Our Latest Report on RDDT
About Reddit
(
Get Free Report)
Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.
Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.
Featured Articles
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
