Social media stock Reddit Inc (NYSE:RDDT) is plummeting today, down 6.8% at $154.07 at last glance and trading at its lowest levels since July, after reports that CEO Steve Huffman sold $3.3 million in shares. The equity was already mired in an extended pullback before today, now pacing for its eighth-straight loss ahead of the company's fourth-quarter earnings report, due out after the close tomorrow, Feb. 5.
Per Zacks Investment Research, Wall Street analysts anticipate profits of 96 cents per share on revenue of $667.58 million, a year-over-year increase of 166.7% and 56.1%, respectively. RDDT finished its last two post-earnings sessions higher, including a 17.8% pop this past August. This time around, the options pits are pricing in a 21.1% swing, regardless of direction, which is larger than the stock's averaged 12.5% move over the last eight quarters.
Following the negative price action, short interest represents 14.2% of the stock's available float, and would take roughly four days to cover, at RDDT's average pace of trading. The stock's 14-day relative strength index (RSI) also sits deep in oversold territory at 8.6.
