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SAN FRANCISCO—Andrew Vollero, Chief Financial Officer of Reddit, Inc. (NASDAQ:RDDT), recently sold a substantial amount of the company’s Class A common stock, according to a regulatory filing submitted to the Securities and Exchange Commission. The transactions, executed over March 24 and 25, involved the sale of 143,095 shares, totaling approximately $24.8 million. The sales come as Reddit’s stock, currently trading at $120.14, shows impressive momentum with an 80.7% gain over the past six months, despite recent market volatility.
The sales were conducted under a pre-arranged 10b5-1 trading plan and involved multiple transactions at prices ranging from $120.26 to $125.79 per share. The largest block of shares sold included 47,791 shares at an average price of $123.98, followed by another significant transaction of 35,232 shares at $122.72 each. According to InvestingPro analysis, Reddit maintains strong financial health with a current ratio of 12.63 and holds more cash than debt on its balance sheet.
Following these transactions, Vollero’s direct ownership of Reddit’s Class A common stock stands at 399,295 shares. The sales were part of a strategic plan initiated to manage personal financial objectives while maintaining compliance with insider trading regulations. With impressive gross profit margins of 90.49% and analysts projecting profitability this year, Reddit shows promising fundamentals. Discover 13 additional key insights about Reddit’s financial outlook with an InvestingPro subscription.
In other recent news, Reddit has been the subject of multiple analyst reports, each providing a varied outlook on the company’s financial trajectory. Needham analysts reaffirmed their Buy rating with a price target of $220, citing Reddit’s strong revenue growth projections and potential for reaching 1 billion daily active users. They highlighted the company’s focus on international expansion and Generative AI initiatives as key drivers for investor optimism. Meanwhile, Guggenheim Securities adjusted its price target for Reddit to $170 but maintained a Buy rating, emphasizing the company’s growth prospects in user and revenue expansion, particularly through advertising improvements and product enhancements.
Raymond (NSE:RYMD) James also revised its price target for Reddit to $200, upholding a Strong Buy rating. The firm noted Reddit’s unique content offerings and the potential benefits from advancements in AI and search technologies. Piper Sandler raised Reddit’s price target to $220, maintaining an Overweight rating, as they observed a rebound in user engagement following a dip attributed to fluctuations in Google (NASDAQ:GOOGL) Search traffic. They adjusted their estimates for Reddit’s user base and average revenue per user, reflecting confidence in the company’s growth potential.
Lastly, BofA Securities increased Reddit’s price target to $190 while keeping a Neutral rating, acknowledging the company’s robust performance but expressing caution due to its premium valuation and reliance on Google for traffic. Despite the varied price targets, the consensus among analysts suggests optimism about Reddit’s strategic initiatives and its ability to navigate market challenges.
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