ARK Investment Management LLC Sells 63,339 Shares of Reddit Inc. (NYSE:RDDT)

Key Points

• ARK Investment Management LLC has reduced its holdings in Reddit Inc. by 22.2%, now owning approximately $23.32 million worth of the company's stock.
• Reddit reported earnings of $0.13 per share for the recent quarter, exceeding analysts' expectations of $0.02, with revenue increasing by 61.5% year-over-year.
• Recent analyst upgrades have raised Reddit's price targets, with some firms increasing their estimates as high as $163.00, indicating growing confidence in the company's market performance.

ARK Investment Management LLC lowered its position in Reddit Inc. (NYSE:RDDT - Free Report) by 22.2% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 222,328 shares of the company's stock after selling 63,339 shares during the period. ARK Investment Management LLC owned about 0.12% of Reddit worth $23,322,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in RDDT. Tucker Asset Management LLC acquired a new position in shares of Reddit during the 4th quarter worth about $39,000. CWM LLC lifted its stake in Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares during the last quarter. Fourth Dimension Wealth LLC acquired a new stake in Reddit in the 4th quarter valued at about $49,000. Chelsea Counsel Co. acquired a new stake in Reddit in the 4th quarter valued at about $49,000. Finally, Quarry LP acquired a new stake in Reddit in the 4th quarter valued at about $59,000.

Reddit Price Performance

NYSE:RDDT traded up $5.23 during mid-day trading on Wednesday, reaching $150.08. The stock had a trading volume of 2,218,051 shares, compared to its average volume of 7,676,309. The stock has a 50-day simple moving average of $132.89 and a two-hundred day simple moving average of $138.46. The stock has a market capitalization of $27.69 billion, a PE ratio of 254.12, a P/E/G ratio of 3.89 and a beta of 2.33. Reddit Inc. has a 12 month low of $49.13 and a 12 month high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, May 1st. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.11. The business had revenue of $392.36 million for the quarter, compared to analysts' expectations of $370.55 million. Reddit had a net margin of 8.07% and a return on equity of 5.69%. The firm's quarterly revenue was up 61.5% compared to the same quarter last year. During the same period last year, the firm posted ($8.19) earnings per share. Equities analysts expect that Reddit Inc. will post 1.12 EPS for the current year.

Analyst Ratings Changes

Several brokerages recently issued reports on RDDT. Guggenheim reiterated a "buy" rating and issued a $165.00 target price on shares of Reddit in a research note on Tuesday, June 24th. Needham & Company LLC raised their target price on shares of Reddit from $145.00 to $165.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. Oppenheimer assumed coverage on shares of Reddit in a research note on Wednesday, April 16th. They issued an "outperform" rating and a $125.00 target price for the company. B. Riley restated a "buy" rating and set a $220.00 price objective (down from $222.00) on shares of Reddit in a research report on Friday, May 2nd. Finally, Citigroup raised their price objective on shares of Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research report on Tuesday, June 24th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Reddit has an average rating of "Moderate Buy" and an average price target of $144.75.

Insider Activity

In other news, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $145.63, for a total transaction of $2,038,820.00. Following the transaction, the chief executive officer owned 539,631 shares in the company, valued at approximately $78,586,462.53. The trade was a 2.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Andrew Vollero sold 30,000 shares of the business's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $117.64, for a total transaction of $3,529,200.00. Following the completion of the transaction, the chief financial officer owned 333,806 shares in the company, valued at approximately $39,268,937.84. The trade was a 8.25% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 506,809 shares of company stock valued at $61,884,325. 34.25% of the stock is currently owned by insiders.

Reddit Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.