13,842 Shares of Reddit Inc. $RDDT Bought by State of Alaska Department of Revenue

Key Points

• Alaska’s Department of Revenue bought 13,842 Reddit shares worth approximately $1.97 million in the third quarter. Several other institutional investors also initiated or expanded positions in RDDT.
• Reddit’s latest quarter exceeded expectations, with EPS of $1.25 versus a $0.95 consensus estimate and revenue of $804.9 million, up 61% year over year.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $219.29, although some firms have cut targets. Insiders sold more than $49.7 million of stock during the quarter, including sales by CEO Steve Huffman and COO Jennifer Wong.

State of Alaska Department of Revenue bought a new position in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 13,842 shares of the company's stock, valued at approximately $1,971,000.

Several other institutional investors also recently modified their holdings of the stock. Triangle Securities Wealth Management bought a new position in Reddit during the 3rd quarter worth approximately $354,000. Tempus Wealth Planning LLC acquired a new position in Reddit during the third quarter valued at approximately $245,000. Sanders Morris Harris LLC bought a new stake in Reddit in the third quarter valued at approximately $209,000. Seelaus Asset Management LLC increased its stake in Reddit by 41.7% in the third quarter. Seelaus Asset Management LLC now owns 4,002 shares of the company's stock valued at $570,000 after purchasing an additional 1,177 shares in the last quarter. Finally, Fagan Associates Inc. increased its stake in Reddit by 339.5% in the third quarter. Fagan Associates Inc. now owns 5,142 shares of the company's stock valued at $732,000 after purchasing an additional 3,972 shares in the last quarter.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: CNBC’s Jim Cramer recommended buying Reddit, describing the shares as “inexpensive.” The endorsement could improve retail-investor sentiment and draw attention to Reddit’s valuation. Jim Cramer recommends Reddit
• Neutral Sentiment: Reddit will report third-quarter results on Thursday, October 29. Investors are likely to focus on advertising growth, user trends and management’s outlook following the company’s previous quarterly revenue increase of 61% year over year. Reddit third-quarter earnings announcement
• Neutral Sentiment: Goldman Sachs maintained its Hold rating on RDDT, indicating that the firm does not see a sufficiently compelling risk-reward profile at current levels. Goldman Sachs maintains Hold rating
• Negative Sentiment: CEO Steve Huffman sold 17,308 shares for approximately $2.74 million, reducing his direct holdings by 4.89%. COO Jennifer Wong separately sold 60,000 shares for about $9.03 million, reducing her position by 5.60%. Both transactions were made under pre-arranged Rule 10b5-1 plans, which lessens—but does not eliminate—the negative signaling effect of insider selling. Reddit insider sales

Reddit Price Performance

Shares of Reddit stock opened at $155.97 on Monday. The firm has a market cap of $30.01 billion, a price-to-earnings ratio of 36.27, a price-to-earnings-growth ratio of 0.72 and a beta of 2.05. The stock's 50-day moving average is $154.22 and its 200-day moving average is $161.65. Reddit Inc. has a one year low of $119.27 and a one year high of $263.50.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.30. The company had revenue of $804.91 million during the quarter, compared to analysts' expectations of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. Reddit's revenue for the quarter was up 61.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.45 earnings per share. On average, equities analysts expect that Reddit Inc. will post 5.27 EPS for the current year.

Wall Street Analysts Forecast Growth

RDDT has been the subject of a number of recent analyst reports. DA Davidson lowered their price objective on shares of Reddit from $200.00 to $185.00 and set a "buy" rating for the company in a research report on Friday, September 18th. Wells Fargo & Company reduced their target price on Reddit from $187.00 to $142.00 and set an "equal weight" rating on the stock in a report on Friday, July 31st. Oppenheimer reduced their target price on Reddit from $225.00 to $200.00 and set an "outperform" rating on the stock in a report on Friday, July 31st. Needham & Company LLC reissued a "buy" rating and issued a $300.00 target price on shares of Reddit in a research note on Friday, October 9th. Finally, Cantor Fitzgerald lowered their price target on Reddit from $200.00 to $170.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $219.29.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Huffman sold 17,308 shares of the company's stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the transaction, the chief executive officer owned 336,432 shares of the company's stock, valued at $53,348,022.24. This represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director directly owned 27,087 shares of the company's stock, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 306,052 shares of company stock worth $49,754,523. Corporate insiders own 28.48% of the company's stock.

About Reddit

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.

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