Bank of Nova Scotia Sells 58,670 Shares of Reddit Inc. $RDDT

Key Points

• Bank of Nova Scotia cut its Reddit stake by 90.6% in the first quarter, selling 58,670 shares and retaining 6,085 shares valued at approximately $819,000.
• Other institutional investors were generally buyers, including Sei Investments, Lido Advisors, Cetera Investment Advisers, and new positions from Wyoming and Militia Capital Management.
• Reddit reported quarterly earnings of $1.01 per share versus a $0.62 estimate, while revenue rose 69.1% year over year to $663.41 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $232.23, compared with a share price of $177.97.

Bank of Nova Scotia lessened its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 90.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 6,085 shares of the company's stock after selling 58,670 shares during the period. Bank of Nova Scotia's holdings in Reddit were worth $819,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the stock. Sei Investments Co. increased its holdings in shares of Reddit by 30.6% in the 1st quarter. Sei Investments Co. now owns 148,386 shares of the company's stock worth $19,980,000 after buying an additional 34,750 shares during the last quarter. Lido Advisors LLC lifted its holdings in shares of Reddit by 45.9% during the 1st quarter. Lido Advisors LLC now owns 8,469 shares of the company's stock worth $1,140,000 after acquiring an additional 2,665 shares during the last quarter. State of Wyoming bought a new stake in shares of Reddit during the 1st quarter worth $387,000. Cetera Investment Advisers grew its position in Reddit by 8.0% in the first quarter. Cetera Investment Advisers now owns 52,499 shares of the company's stock worth $7,069,000 after acquiring an additional 3,892 shares in the last quarter. Finally, Militia Capital Management LLC purchased a new position in Reddit in the first quarter worth $2,378,000.

Reddit Stock Performance

RDDT stock opened at $177.97 on Thursday. The firm has a market cap of $34.26 billion, a P/E ratio of 50.85 and a beta of 1.93. The firm's fifty day moving average is $176.17 and its 200 day moving average is $165.56. Reddit Inc. has a 52 week low of $119.27 and a 52 week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. During the same period in the previous year, the firm posted $0.13 earnings per share. The firm's revenue for the quarter was up 69.1% on a year-over-year basis. As a group, analysts forecast that Reddit Inc. will post 4.85 EPS for the current year.

Wall Street Analyst Weigh In

A number of research analysts recently commented on RDDT shares. Citizens Jmp reduced their target price on Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a research note on Friday, May 1st. Raymond James Financial set a $180.00 price target on Reddit and gave the stock a "market perform" rating in a research note on Friday, May 1st. DA Davidson reiterated a "buy" rating and issued a $200.00 price objective on shares of Reddit in a report on Thursday, July 23rd. Zacks Research raised Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday. Finally, Loop Capital reissued a "buy" rating and set a $260.00 price objective on shares of Reddit in a report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Reddit currently has a consensus rating of "Moderate Buy" and a consensus price target of $232.23.

Insider Activity

In other news, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. The trade was a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the sale, the chief accounting officer directly owned 15,060 shares of the company's stock, valued at approximately $3,012,000. This trade represents a 5.09% 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 three months, insiders have sold 169,141 shares of company stock valued at $28,680,845. 28.48% of the stock is currently owned by insiders.

Reddit 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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