Envestnet Asset Management Inc. Trims Stock Holdings in Reddit Inc. $RDDT

Key Points

• Envestnet Asset Management cut its Reddit stake by 16.5% in the second quarter, selling 29,909 shares and retaining 151,590 shares worth approximately $26.3 million.
• Reddit reported stronger-than-expected quarterly results, with EPS of $1.25 versus the $0.95 consensus and revenue of $804.9 million, up 61% year over year.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $219.29, while Reddit shares recently traded at $143.24, below their 50- and 200-day moving averages.

Envestnet Asset Management Inc. lessened its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 16.5% during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 151,590 shares of the company's stock after selling 29,909 shares during the period. Envestnet Asset Management Inc. owned approximately 0.08% of Reddit worth $26,313,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Sunbelt Securities Inc. raised its stake in shares of Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after acquiring an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock worth $34,000 after purchasing an additional 64 shares during the period. Beacon Investment Advisory Services Inc. purchased a new position in Reddit during the 2nd quarter worth $35,000. Ascentis Independent Advisors bought a new stake in Reddit during the 1st quarter valued at $30,000. Finally, Rothschild Investment LLC raised its position in Reddit by 163.1% during the 4th quarter. Rothschild Investment LLC now owns 271 shares of the company's stock valued at $62,000 after purchasing an additional 168 shares in the last quarter.

Reddit Stock Performance

Shares of RDDT opened at $143.24 on Tuesday. The business's 50-day moving average is $158.22 and its two-hundred day moving average is $159.99. The company has a market capitalization of $27.56 billion, a P/E ratio of 33.31, a P/E/G ratio of 0.69 and a beta of 2.02. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $263.50.

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

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Sanford C. Bernstein reissued a "market perform" rating and set a $180.00 price target on shares of Reddit in a research report on Friday, July 31st. UBS Group restated a "buy" rating on shares of Reddit in a report on Friday, July 31st. Wells Fargo & Company lowered their price objective on shares of Reddit from $187.00 to $142.00 and set an "equal weight" rating for the company in a research note on Friday, July 31st. Robert W. Baird set a $185.00 target price on Reddit in a report on Friday, July 31st. Finally, Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research report on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $219.29.

Insider Transactions at Reddit

In related news, Director Robert A. Sauerberg sold 5,128 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the transaction, the director directly owned 27,087 shares of the company's stock, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Michelle Reynolds sold 808 shares of the firm's stock in a transaction on 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 transaction, the chief accounting officer owned 15,060 shares in the company, valued at $3,012,000. The trade was 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. In the last ninety days, insiders have sold 212,244 shares of company stock worth $35,631,184. 28.48% of the stock is owned by insiders.

Reddit 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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