Reddit (NYSE:RDDT) Stock Price Down 7.6% – Here’s Why

Reddit Inc. (NYSE:RDDT) fell 7.6% during mid-day trading on Thursday . The company traded as low as $240.50 and last traded at $233.3190. 733,362 shares changed hands during trading, a decline of 79% from the average session volume of 3,474,132 shares. The stock had previously closed at $252.38.

Wall Street Analyst Weigh In

A number of research firms have weighed in on RDDT. Truist Financial set a $270.00 price objective on Reddit in a research note on Friday, October 31st. Needham & Company LLC reiterated a “buy” rating and set a $300.00 price target on shares of Reddit in a research report on Monday, December 29th. Wells Fargo & Company upped their price objective on Reddit from $186.00 to $207.00 and gave the stock an “equal weight” rating in a research report on Monday. Cantor Fitzgerald assumed coverage on shares of Reddit in a report on Thursday, January 8th. They set a “neutral” rating and a $240.00 target price for the company. Finally, B. Riley reiterated a “buy” rating and issued a $245.00 target price (up from $235.00) on shares of Reddit in a research note on Friday, October 31st. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $238.57.

Reddit Price Performance

The company’s fifty day simple moving average is $221.77 and its 200-day simple moving average is $209.62. The firm has a market capitalization of $43.84 billion, a PE ratio of 133.21, a P/E/G ratio of 1.74 and a beta of 2.17.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.30. Reddit had a net margin of 18.33% and a return on equity of 14.94%. The firm had revenue of $584.91 million during the quarter, compared to the consensus estimate of $546.65 million. During the same quarter in the prior year, the firm earned $0.16 EPS. The company’s revenue for the quarter was up 67.9% on a year-over-year basis. Analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current year.

Insider Transactions at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 24,000 shares of Reddit stock in a transaction on Monday, November 24th. The shares were sold at an average price of $192.72, for a total transaction of $4,625,280.00. Following the sale, the chief technology officer owned 175,694 shares of the company’s stock, valued at $33,859,747.68. The trade was a 12.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $194.81, for a total transaction of $3,506,580.00. Following the transaction, the chief executive officer owned 485,958 shares in the company, valued at $94,669,477.98. The trade was a 3.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 505,470 shares of company stock worth $109,018,861. 34.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Teacher Retirement System of Texas raised its position in Reddit by 880.5% during the second quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock worth $14,255,000 after acquiring an additional 85,020 shares during the last quarter. Union Bancaire Privee UBP SA purchased a new position in shares of Reddit during the 2nd quarter worth approximately $2,078,000. J. Safra Sarasin Holding AG acquired a new position in shares of Reddit during the 2nd quarter worth approximately $226,000. Plato Investment Management Ltd raised its position in shares of Reddit by 120.2% during the 2nd quarter. Plato Investment Management Ltd now owns 2,970 shares of the company’s stock worth $446,000 after purchasing an additional 1,621 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey purchased a new stake in Reddit in the 2nd quarter valued at approximately $2,666,000.

About Reddit

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.