Lyell Wealth Management LP Sells 2,500 Shares of Reddit Inc. (NYSE:RDDT)

Key Points

• Lyell Wealth Management LP has reduced its stake in Reddit Inc. by 23.3%, selling 2,500 shares to hold 8,237 shares valued at approximately $864,000.
• Reddit reported strong financial results for the quarter, with earnings per share of $0.45, exceeding estimates by $0.25 and a revenue increase of 77.9% year-over-year.
• Several institutional investors have significantly increased their holdings in Reddit, with American Century Companies Inc. acquiring a new stake worth about $1.4 million in the fourth quarter.

Lyell Wealth Management LP lowered its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 23.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 8,237 shares of the company's stock after selling 2,500 shares during the quarter. Lyell Wealth Management LP's holdings in Reddit were worth $864,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in RDDT. American Century Companies Inc. bought a new stake in shares of Reddit in the 4th quarter worth about $1,395,000. LPL Financial LLC lifted its holdings in shares of Reddit by 229.9% in the 4th quarter. LPL Financial LLC now owns 65,784 shares of the company's stock worth $10,752,000 after acquiring an additional 45,844 shares during the last quarter. Prudential Financial Inc. bought a new stake in Reddit during the 4th quarter valued at about $351,000. Norges Bank bought a new stake in Reddit during the 4th quarter valued at about $72,017,000. Finally, Pictet Asset Management Holding SA lifted its holdings in Reddit by 123.9% during the 4th quarter. Pictet Asset Management Holding SA now owns 7,244 shares of the company's stock valued at $1,184,000 after buying an additional 4,009 shares in the last quarter.

Reddit Stock Performance

Shares of NYSE RDDT opened at $161.13 on Friday. The firm has a market cap of $29.73 billion, a PE ratio of 273.11, a PEG ratio of 3.81 and a beta of 2.33. The firm has a fifty day moving average of $135.22 and a 200 day moving average of $138.51. Reddit Inc. has a one year low of $49.13 and a one year high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.25. Reddit had a net margin of 8.07% and a return on equity of 5.69%. The business had revenue of $499.63 million during the quarter, compared to analyst estimates of $424.07 million. During the same quarter in the prior year, the firm earned ($0.06) earnings per share. The company's revenue for the quarter was up 77.9% compared to the same quarter last year. On average, equities analysts predict that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insider Transactions at Reddit

In other Reddit news, COO Jennifer L. Wong sold 33,334 shares of the company's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $142.06, for a total value of $4,735,428.04. Following the transaction, the chief operating officer owned 1,428,007 shares of the company's stock, valued at $202,862,674.42. This represents a 2.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CTO Christopher Brian Slowe sold 16,000 shares of the company's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $145.58, for a total transaction of $2,329,280.00. Following the completion of the transaction, the chief technology officer directly owned 241,373 shares in the company, valued at $35,139,081.34. The trade was a 6.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 506,809 shares of company stock valued at $61,884,325 in the last three months. 34.25% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts have commented on RDDT shares. Citigroup raised their target price on shares of Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research report on Tuesday, June 24th. Needham & Company LLC raised their target price on shares of Reddit from $145.00 to $165.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. Oppenheimer started coverage on shares of Reddit in a research report on Wednesday, April 16th. They set an "outperform" rating and a $125.00 target price on the stock. JPMorgan Chase & Co. cut their target price on shares of Reddit from $185.00 to $110.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 8th. Finally, Morgan Stanley raised their target price on shares of Reddit from $154.00 to $170.00 and gave the company an "overweight" rating in a research report on Monday, July 21st. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $147.75.

About Reddit

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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