Artisan Partners Limited Partnership Sells 52,772 Shares of Reddit Inc. $RDDT

Key Points

• Artisan Partners trimmed its Reddit stake by 7.9% in the fourth quarter, selling 52,772 shares and ending with 617,140 shares valued at about $141.9 million.
• Reddit insiders were also selling: COO Jennifer L. Wong and CEO Steve Huffman both reduced their holdings through pre-arranged 10b5-1 plans, with insiders selling 193,334 shares worth about $30.5 million over the last quarter.
• Despite the selling, analysts remain generally positive on Reddit, with an average rating of “Moderate Buy” and an average target price of $230.75; the company recently beat earnings and revenue expectations with 69.1% year-over-year revenue growth.

Artisan Partners Limited Partnership cut its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 7.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 617,140 shares of the company's stock after selling 52,772 shares during the period. Artisan Partners Limited Partnership owned approximately 0.32% of Reddit worth $141,862,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Huntington National Bank raised its stake in shares of Reddit by 25.6% during the third quarter. Huntington National Bank now owns 270 shares of the company's stock valued at $62,000 after acquiring an additional 55 shares during the last quarter. Institute for Wealth Management LLC. raised its stake in shares of Reddit by 6.1% during the fourth quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock valued at $246,000 after acquiring an additional 62 shares during the last quarter. Roxbury Financial LLC raised its stake in shares of Reddit by 7.4% during the fourth quarter. Roxbury Financial LLC now owns 929 shares of the company's stock valued at $214,000 after acquiring an additional 64 shares during the last quarter. Florida Financial Advisors LLC raised its stake in shares of Reddit by 6.7% during the fourth quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company's stock valued at $250,000 after acquiring an additional 68 shares during the last quarter. Finally, IFP Advisors Inc raised its stake in shares of Reddit by 9.9% during the third quarter. IFP Advisors Inc now owns 796 shares of the company's stock valued at $183,000 after acquiring an additional 72 shares during the last quarter.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on RDDT shares. Oppenheimer reaffirmed an "outperform" rating and set a $225.00 price objective on shares of Reddit in a research note on Friday, May 1st. Jefferies Financial Group lowered their price objective on shares of Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a research note on Tuesday, March 10th. Piper Sandler reaffirmed an "overweight" rating and set a $215.00 price objective (up from $205.00) on shares of Reddit in a research note on Friday, May 1st. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $200.00 price objective on shares of Reddit in a research note on Friday, May 1st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Reddit in a research note on Friday, May 8th. Eighteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, Reddit has an average rating of "Moderate Buy" and an average target price of $230.75.

Insiders Place Their Bets

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the sale, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. This represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $174.13, for a total transaction of $3,134,340.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $65,092,231.82. This represents a 4.59% 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. Over the last quarter, insiders have sold 193,334 shares of company stock worth $30,507,093. 28.48% of the stock is currently owned by company insiders.

Reddit Price Performance

Shares of NYSE RDDT opened at $175.66 on Wednesday. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The company's 50-day moving average is $159.09 and its 200 day moving average is $176.27. The stock has a market capitalization of $33.82 billion, a P/E ratio of 50.19 and a beta of 1.91.

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

Reddit Company Profile

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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