Key Points
- Reddit director Mary Gale sold 3,000 shares for $288,000, reducing her position by 14.16%; she retained 18,181 shares.
- Reddit beat quarterly estimates, reporting EPS of $1.40 versus $1.33 expected and revenue of $894.96 million versus $874.91 million. Revenue rose 53% year over year.
- Analyst views were mixed: Reddit carried a “Moderate Buy” consensus, but several firms cut ratings or price targets; the consensus target was $180.91.
Reddit Inc. (NYSE:RDDT - Get Free Report) Director Mary Gale sold 3,000 shares of Reddit stock in a transaction that occurred on Tuesday, November 3rd. The shares were sold at an average price of $96.00, for a total value of $288,000.00. Following the completion of the sale, the director directly owned 18,181 shares in the company, valued at approximately $1,745,376. This represents a 14.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website.
Reddit Stock Performance
NYSE RDDT opened at $93.85 on Friday. The stock has a market capitalization of $18.06 billion, a price-to-earnings ratio of 19.15, a PEG ratio of 0.41 and a beta of 2.28. The stock's 50 day moving average price is $145.55 and its two-hundred day moving average price is $157.31. Reddit Inc. has a 52 week low of $89.28 and a 52 week high of $263.50.
Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. The firm had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business's revenue was up 53.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.80 EPS. On average, equities research analysts forecast that Reddit Inc. will post 5.42 EPS for the current year.
Institutional Inflows and Outflows
Large investors have recently bought and sold shares of the stock. State Street Corp raised its stake in shares of Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after purchasing an additional 237,523 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of 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 purchasing an additional 280,030 shares in the last quarter. DSM Capital Partners LLC boosted its holdings in shares of Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company's stock valued at $114,211,000 after buying an additional 42,808 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in shares of Reddit by 74.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock valued at $115,243,000 after buying an additional 345,735 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Reddit by 8.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company's stock valued at $83,647,000 after buying an additional 39,540 shares during the last quarter.
Key Headlines Impacting Reddit
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: KeyCorp raised its FY2026 EPS estimate to $5.41 from $4.90, close to the cited consensus estimate of $5.42. A separate analyst roundup also characterized sentiment toward Reddit as bullish. Analysts Are Bullish on These Communication Services Stocks
- Neutral Sentiment: Commentary described Reddit as recovering from concerns about AI search, while a report discussed broker forecasts for Q4 earnings; the supplied headlines did not provide details on the outlook or forecast changes. Reddit Stock Roars Back From AI Search Scare Brokers Issue Forecasts for Reddit's Q4 Earnings
- Negative Sentiment: KeyCorp cut its FY2028 EPS estimate to $7.06 from $8.73, pointing to reduced longer-term earnings expectations. Reddit analyst estimates
- Negative Sentiment: Reports said Loop Capital lowered its rating on Reddit and Evercore moved its rating to Hold, adding to pressure on investor sentiment. Loop Capital Lowers Reddit Rating Evercore Lowers Reddit to Hold
- Negative Sentiment: Director Mary Gale sold 3,000 shares for $288,000, reducing her stake by 14.16%, though she retained 18,181 shares. Insider sales can raise concerns but do not by themselves establish a negative outlook. SEC Form 4 filing
- Negative Sentiment: Block & Leviton announced an investigation into potential securities-law violations and invited investors who lost money to contact the firm. The announcement is an allegation/investigation, not a finding of wrongdoing. Block & Leviton Investigation Announcement
Wall Street Analysts Forecast Growth
A number of analysts have recently commented on RDDT shares. KeyCorp lowered shares of Reddit from an "overweight" rating to a "sector weight" rating in a research report on Friday, October 30th. Wells Fargo & Company decreased their target price on shares of Reddit from $142.00 to $110.00 and set an "equal weight" rating for the company in a research report on Friday, October 30th. Jefferies Financial Group lowered their price target on shares of Reddit from $200.00 to $155.00 in a research note on Friday, October 30th. President Capital lowered their price target on shares of Reddit from $207.00 to $199.00 and set a "buy" rating on the stock in a research note on Thursday, September 17th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Reddit in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have issued a Hold rating to the company's stock. Based on data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus target price of $180.91.
Get Our Latest Analysis on Reddit
About Reddit
(
Get Free Report)
Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.
Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.
Further Reading
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