American Century Companies Inc. Raises Stock Position in Reddit Inc. $RDDT

Key Points

• American Century Companies boosted its stake in Reddit by 19,007.3% in Q3, adding 277,696 shares to own 279,157 shares (about 0.15% of the company) valued at roughly $64.2 million.
• Reddit reported a strong quarter with EPS $1.24 (vs. $0.96 est.) and revenue of $725.6M (up 69.7% YoY), and analysts hold an average rating of "Moderate Buy" with an average price target of $238.78.
• Notable insider activity: CTO Christopher Slowe sold 19,036 shares while Director Sarah E. Farrell purchased 43,800 shares, and corporate insiders collectively own 34.25% of Reddit's stock.

American Century Companies Inc. raised its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 19,007.3% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 279,157 shares of the company's stock after buying an additional 277,696 shares during the period. American Century Companies Inc. owned about 0.15% of Reddit worth $64,203,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Raiffeisen Bank International AG purchased a new position in shares of Reddit in the third quarter worth approximately $25,000. Cornerstone Planning Group LLC raised its position in Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock worth $31,000 after acquiring an additional 135 shares during the period. GAMMA Investing LLC boosted its stake in shares of Reddit by 8,650.0% during the 3rd quarter. GAMMA Investing LLC now owns 175 shares of the company's stock worth $40,000 after acquiring an additional 173 shares during the last quarter. Cloud Capital Management LLC purchased a new position in Reddit during the third quarter valued at $47,000. Finally, Covestor Ltd lifted its position in shares of Reddit by 138.5% during the 3rd quarter. Covestor Ltd now owns 217 shares of the company's stock valued at $50,000 after buying an additional 126 shares in the last quarter.

Reddit Price Performance

Shares of RDDT opened at $147.19 on Thursday. Reddit Inc. has a 1 year low of $79.75 and a 1 year high of $282.95. The business's 50 day simple moving average is $190.89 and its 200-day simple moving average is $209.17. The stock has a market capitalization of $28.12 billion, a price-to-earnings ratio of 56.18, a price-to-earnings-growth ratio of 1.06 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.28. The firm had revenue of $725.61 million for the quarter, compared to the consensus estimate of $665.80 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The business's quarterly revenue was up 69.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.36 EPS. On average, sell-side analysts expect that Reddit Inc. will post 1.12 earnings per share for the current year.

Insider Activity at Reddit

In other news, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $144.05, for a total value of $2,742,135.80. Following the sale, the chief technology officer owned 185,057 shares of the company's stock, valued at approximately $26,657,460.85. This represents a 9.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Sarah E. Farrell purchased 43,800 shares of the business's stock in a transaction that occurred on Tuesday, February 10th. The shares were purchased at an average price of $149.52 per share, for a total transaction of $6,548,976.00. Following the completion of the acquisition, the director directly owned 43,800 shares in the company, valued at $6,548,976. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 449,084 shares of company stock valued at $93,738,449 over the last three months. Corporate insiders own 34.25% of the company's stock.

Analysts Set New Price Targets

Several research firms recently issued reports on RDDT. Jefferies Financial Group increased their target price on shares of Reddit from $300.00 to $325.00 and gave the stock a "buy" rating in a report on Thursday, December 11th. Wall Street Zen raised shares of Reddit from a "hold" rating to a "buy" rating in a research note on Saturday, February 14th. Argus set a $300.00 target price on shares of Reddit in a research note on Friday, January 9th. Evercore reaffirmed an "outperform" rating and issued a $290.00 target price on shares of Reddit in a report on Friday, February 6th. Finally, UBS Group set a $265.00 price target on Reddit in a report on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $238.78.

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.

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