Bank of America Corp DE Sells 325,321 Shares of Reddit Inc. $RDDT

Key Points

• Bank of America reduced its Reddit stake by 24.6%, selling 325,321 shares and retaining 997,144 shares worth approximately $134.3 million.
• Reddit insiders sold 169,141 shares worth about $28.5 million over the past three months, while several institutional investors—including UBS Asset Management and NewEdge Advisors— increased their positions.
• Reddit reported stronger-than-expected quarterly results, with earnings of $1.25 per share and revenue of $804.9 million, up 61% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $220.90, despite mixed target-price revisions.

Bank of America Corp DE lowered its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 24.6% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 997,144 shares of the company's stock after selling 325,321 shares during the period. Bank of America Corp DE owned approximately 0.52% of Reddit worth $134,265,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of RDDT. NewEdge Advisors LLC lifted its holdings in shares of Reddit by 143.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock worth $837,000 after acquiring an additional 4,701 shares during the period. Empowered Funds LLC bought a new position in Reddit in the first quarter valued at approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock valued at $22,759,000 after acquiring an additional 111,780 shares during the last quarter. Focus Partners Wealth raised its position in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock valued at $1,073,000 after purchasing an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

Insider Activity at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,166 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at $185,846,982.66. This trade represents a 3.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 Reddit stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $159.78, for a total transaction of $2,876,040.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares of the company's stock, valued at $59,728,000.92. The trade was a 4.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 169,141 shares of company stock worth $28,464,485. Company insiders own 28.48% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on RDDT. Piper Sandler reiterated an "overweight" rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a research report on Friday, July 31st. Wells Fargo & Company cut their target price on shares of Reddit from $187.00 to $142.00 and set an "equal weight" rating on the stock in a research report on Friday, July 31st. B. Riley Financial boosted their target price on shares of Reddit from $250.00 to $270.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a report on Friday, May 8th. Finally, Oppenheimer dropped their price target on Reddit from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and an average price target of $220.90.

Reddit Stock Performance

Shares of RDDT opened at $151.20 on Friday. The firm has a market capitalization of $29.11 billion, a P/E ratio of 35.16, a P/E/G ratio of 0.52 and a beta of 2.03. Reddit Inc. has a 52 week low of $119.27 and a 52 week high of $282.95. The stock has a 50 day moving average price of $176.97 and a two-hundred day moving average price of $161.90.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The company had revenue of $804.91 million for 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%.The business's revenue for the quarter was up 61.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.45 EPS. On average, equities analysts forecast that Reddit Inc. will post 5.22 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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