Key Points
- Reddit director Mary Porter Gale sold 4,000 shares at $96 each, totaling $384,000, and her reported holdings fell 26.35% to 11,181 shares. She had also sold 3,000 shares earlier that week.
- Reddit reported quarterly EPS of $1.40, beating the $1.33 consensus estimate, while revenue of $894.96 million exceeded forecasts and rose 53% year over year.
- Analyst views remain mixed: the stock has a “Moderate Buy” consensus and a $180 average price target, though some firms recently lowered targets or ratings.
Reddit Inc. (NYSE:RDDT - Get Free Report) Director Mary Gale sold 4,000 shares of the stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $96.00, for a total transaction of $384,000.00. Following the transaction, the director owned 11,181 shares of the company's stock, valued at approximately $1,073,376. This represents a 26.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
Mary Porter Gale also recently made the following trade(s):
- On Tuesday, November 3rd, Mary Gale sold 3,000 shares of Reddit stock. The shares were sold at an average price of $96.00, for a total value of $288,000.00.
Reddit Price Performance
Shares of NYSE RDDT opened at $98.48 on Wednesday. The business has a 50-day moving average of $142.35 and a 200-day moving average of $155.53. The stock has a market capitalization of $19.02 billion, a price-to-earnings ratio of 20.10, a PEG ratio of 0.41 and a beta of 2.28. Reddit Inc. has a fifty-two week low of $89.28 and a fifty-two week high of $263.50.
Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.07. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. During the same quarter in the prior year, the company posted $0.80 earnings per share. Reddit's revenue was up 53.0% on a year-over-year basis. On average, sell-side analysts expect that Reddit Inc. will post 5.42 EPS for the current year.
Key Headlines Impacting Reddit
Here are the key news stories impacting Reddit this week:
- Positive Sentiment: Reddit launched Reddit Reviews, which uses AI to organize community discussions into product reviews and key takeaways. The feature could make Reddit more useful for product research and create opportunities to convert user activity into revenue. Reddit is turning user conversations into AI-powered product reviews
- Positive Sentiment: A Seeking Alpha analysis argues that the selloff may discount the potential value of conversion traffic, suggesting investors may be underestimating Reddit’s ability to turn visitors into users and customers. Reddit's 29% Earnings Selloff May Be Overlooking Conversion Traffic Potential
- Neutral Sentiment: Guggenheim cut its price target to $140 from $170 but maintained a Buy rating. The lower target reflects a more cautious outlook, while the rating indicates the firm still sees potential upside. Guggenheim stock recommendations
- Negative Sentiment: Google search traffic is a key concern: Reddit’s COO said more than 80% of monetization comes from logged-in users, leaving the remaining portion more exposed to Google’s pressure on traffic. That risk may contribute to investor worries about future growth. Reddit COO Says “Over 80% of Our Monetization” Is Logged In. Google Is Squeezing the Rest
- Negative Sentiment: Two law firms announced securities investigations following the reported 29.2% share drop. These are investigations, not findings of wrongdoing, but the announcements add legal uncertainty and negative headlines. Block & Leviton investigation announcement Kirby McInerney investigation announcement
- Negative Sentiment: Director Mary Gale sold 4,000 shares for $384,000, reducing her reported holdings by 26.35%. Insider sales can have varied motivations, but may add to cautious sentiment. SEC Form 4 filing
Analyst Ratings Changes
Several research analysts have weighed in on the company. Telsey Advisory Group set a $240.00 price target on Reddit in a research report on Friday, July 31st. Evercore downgraded Reddit from an "outperform" rating to a "hold" rating and set a $120.00 price objective for the company. in a report on Monday, November 2nd. Wall Street Zen cut shares of Reddit from a "buy" rating to a "hold" rating in a research note on Sunday, August 9th. DA Davidson decreased their target price on shares of Reddit from $185.00 to $125.00 and set a "buy" rating for the company in a research note on Monday, November 2nd. Finally, BNP Paribas Exane lowered their target price on shares of Reddit from $180.00 to $110.00 in a report on Friday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $180.00.
View Our Latest Report on RDDT
Institutional Investors Weigh In On Reddit
Hedge funds have recently bought and sold shares of the company. State Street Corp grew its holdings in Reddit by 8.7% during the second 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 during the period. Wellington Management Group LLP increased its position in Reddit by 21.8% during the second 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 last quarter. Robeco Institutional Asset Management B.V. increased its position in Reddit by 74.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock worth $115,243,000 after buying an additional 345,735 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position 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 buying an additional 39,540 shares during the last quarter. Finally, Bessemer Group Inc. raised its stake in Reddit by 2.4% in the first quarter. Bessemer Group Inc. now owns 469,907 shares of the company's stock valued at $63,273,000 after buying an additional 10,996 shares during the period.
About Reddit
(
Get Free Report)
Reddit, Inc. operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community. The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications. Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.
Further Reading
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