California State Teachers Retirement System Grows Position in Reddit Inc. $RDDT

Key Points

• California State Teachers Retirement System dramatically increased its Reddit stake by adding nearly 29.9 million shares in the second quarter, bringing its holdings to 30.1 million shares valued at approximately $5.22 billion.
• Reddit exceeded quarterly expectations, reporting $1.25 in EPS and $804.9 million in revenue, with revenue rising 61% year over year. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $221.10.
• RDDT opened at $146.80, well below its 52-week high of $282.95. Insiders have sold approximately $36.4 million worth of shares over the past 90 days, though insiders still own 28.48% of the company.

California State Teachers Retirement System boosted its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 19,702.8% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 30,076,727 shares of the company's stock after acquiring an additional 29,924,846 shares during the period. California State Teachers Retirement System owned 15.63% of Reddit worth $5,220,718,000 at the end of the most recent quarter.

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

Wall Street Analysts Forecast Growth

RDDT has been the topic of several recent research reports. DA Davidson reaffirmed a "buy" rating and set a $200.00 price objective on shares of Reddit in a report on Thursday, July 23rd. Evercore restated an "outperform" rating and issued a $265.00 price target on shares of Reddit in a research report on Friday, July 31st. Oppenheimer decreased their price target on shares of Reddit from $225.00 to $200.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. Robert W. Baird set a $185.00 price objective on shares of Reddit in a research report on Friday, July 31st. Finally, Citigroup reissued a "market outperform" rating on shares of Reddit in a research note on Monday, August 24th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $221.10.

Reddit Stock Performance

NYSE RDDT opened at $146.80 on Thursday. The business's 50 day moving average price is $168.67 and its 200-day moving average price is $159.06. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The company has a market cap of $28.25 billion, a P/E ratio of 34.14, a P/E/G ratio of 0.69 and a beta of 2.02.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The company had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.Reddit's revenue was up 61.0% on a year-over-year basis. During the same period last year, the company earned $0.45 earnings per share. As a group, equities analysts predict that Reddit Inc. will post 5.27 EPS for the current year.

Insider Activity

In other news, COO Jennifer Wong sold 75,000 shares of the firm's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the sale, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This trade represents a 6.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the sale, the director directly owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 210,102 shares of company stock worth $36,375,252 over the last 90 days. Insiders own 28.48% of the company's stock.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.

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