Mitsubishi UFJ Asset Management Co. Ltd. Acquires 6,647 Shares of Reddit Inc. $RDDT

Key Points

• Mitsubishi UFJ Asset Management increased its Reddit stake by 5.7% in the fourth quarter, buying 6,647 more shares and bringing its total holdings to 122,581 shares valued at about $29.7 million.
• Reddit reported strong quarterly results, with earnings of $1.01 per share versus the $0.62 estimate and revenue of $663.41 million, up 69.1% year over year.
• Insider selling continued, including share sales by CTO Christopher Brian Slowe and CEO Steve Huffman, while analysts currently rate the stock a consensus Moderate Buy with an average target price of $228.61.

Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 5.7% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 122,581 shares of the company's stock after purchasing an additional 6,647 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.06% of Reddit worth $29,651,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in RDDT. Raiffeisen Bank International AG bought a new position in Reddit in the 3rd quarter worth approximately $25,000. GW&K Investment Management LLC bought a new position in Reddit in the 3rd quarter worth approximately $30,000. Cornerstone Planning Group LLC boosted its stake in Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock worth $31,000 after purchasing an additional 135 shares during the period. LOM Asset Management Ltd bought a new position in Reddit in the 4th quarter worth approximately $33,000. Finally, Noble Wealth Management PBC bought a new position in Reddit in the 4th quarter worth approximately $34,000.

Reddit Stock Performance

NYSE:RDDT opened at $155.74 on Friday. The stock's fifty day moving average is $145.45 and its 200 day moving average is $183.43. Reddit Inc. has a fifty-two week low of $94.89 and a fifty-two week high of $282.95. The firm has a market capitalization of $29.75 billion, a PE ratio of 44.50, a PEG ratio of 0.95 and a beta of 1.85.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same quarter in the prior year, the firm posted $0.13 EPS. Reddit's quarterly revenue was up 69.1% compared to the same quarter last year. Equities analysts forecast that Reddit Inc. will post 4.78 EPS for the current year.

Insider Buying and Selling

In other news, CTO Christopher Brian Slowe sold 15,500 shares of the company's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the transaction, the chief technology officer owned 38,413 shares of the company's stock, valued at approximately $5,787,686.71. This represents a 28.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed 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 the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $171.80, for a total value of $3,092,400.00. Following the transaction, the chief executive officer directly owned 411,195 shares in the company, valued at approximately $70,643,301. This represents a 4.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have purchased 61,000 shares of company stock worth $8,870,815 and have sold 298,441 shares worth $43,966,159. Company insiders own 34.25% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have weighed in on RDDT. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $285.00 price target on shares of Reddit in a research note on Tuesday, January 20th. UBS Group set a $265.00 price target on Reddit in a research note on Tuesday, January 13th. JPMorgan Chase & Co. dropped their price target on Reddit from $227.00 to $200.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. Citizens Jmp dropped their price target on Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a research note on Friday, May 1st. Finally, Wall Street Zen downgraded Reddit from a "buy" rating to a "hold" rating in a research report on Sunday. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and an average target price of $228.61.

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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