Amova Asset Management Americas Inc. Sells 181,896 Shares of Reddit Inc. $RDDT

Key Points

• Amova Asset Management Americas cut its Reddit stake by 97.5% in the fourth quarter, selling 181,896 shares and ending with just 4,662 shares worth about $1.07 million.
• Reddit’s latest quarterly results were strong, with EPS of $1.01 and revenue of $663.41 million, both ahead of estimates; revenue jumped 69.1% year over year.
• Despite some insider selling and mixed analyst targets, Wall Street remains generally positive on Reddit, with a Moderate Buy consensus and an average price target of $230.75.

Amova Asset Management Americas Inc. lessened its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 97.5% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,662 shares of the company's stock after selling 181,896 shares during the period. Amova Asset Management Americas Inc.'s holdings in Reddit were worth $1,070,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. Capital World Investors acquired a new stake in Reddit in the 4th quarter valued at approximately $1,293,258,000. Norges Bank acquired a new position in shares of Reddit during the 4th quarter worth approximately $372,047,000. Vanguard Group Inc. increased its position in shares of Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the last quarter. Invesco Ltd. increased its position in shares of Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock worth $342,212,000 after purchasing an additional 1,201,237 shares during the last quarter. Finally, State Street Corp increased its position in shares of Reddit by 138.5% during the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company's stock worth $305,678,000 after purchasing an additional 1,178,890 shares during the last quarter.

Reddit Stock Performance

NYSE:RDDT opened at $172.54 on Thursday. The stock has a fifty day moving average price of $156.09 and a 200-day moving average price of $177.06. The company has a market cap of $33.22 billion, a price-to-earnings ratio of 49.30 and a beta of 1.91. Reddit Inc. has a fifty-two week low of $110.85 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. The firm had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company's revenue was up 69.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.13 EPS. Research analysts predict that Reddit Inc. will post 4.83 EPS for the current fiscal year.

Insider Activity

In other news, COO Jennifer L. Wong sold 39,167 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. This represents a 3.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total value of $2,335,385.00. Following the transaction, the chief technology officer directly owned 38,413 shares of the company's stock, valued at $5,787,686.71. This trade represents a 28.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 250,499 shares of company stock worth $38,515,283. 28.48% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Piper Sandler reaffirmed an "overweight" rating and set a $215.00 price target (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Jefferies Financial Group lowered their price target on Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a research report on Tuesday, March 10th. DA Davidson reissued a "buy" rating and set a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Citigroup reissued a "market outperform" rating on shares of Reddit in a report on Tuesday, May 26th. Finally, Rothschild & Co Redburn set a $110.00 target price on Reddit in a report on Monday, April 27th. Eighteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $230.75.

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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