National Pension Service Purchases 187,174 Shares of Reddit Inc. $RDDT

Key Points

• National Pension Service sharply increased its Reddit stake in the fourth quarter, buying 187,174 shares and lifting its holdings to 193,593 shares worth about $44.5 million.
• Other major institutions also added to Reddit positions, including Vanguard, State Street, Geode Capital, Bank of America, and Invesco, signaling broad institutional interest in the stock.
• Analyst sentiment remains constructive overall, with Reddit carrying a Moderate Buy rating and a consensus price target of $228.61, even as some executives recently sold shares and the stock traded at $176.41.

National Pension Service lifted its position in Reddit Inc. (NYSE:RDDT - Free Report) by 2,915.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 193,593 shares of the company's stock after buying an additional 187,174 shares during the quarter. National Pension Service owned about 0.10% of Reddit worth $44,501,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its stake in shares of Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after buying an additional 1,083,540 shares in the last quarter. State Street Corp grew its stake in shares of Reddit by 22.3% in the third quarter. State Street Corp now owns 2,481,931 shares of the company's stock valued at $570,819,000 after buying an additional 451,792 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Reddit by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock valued at $546,789,000 after buying an additional 106,821 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Reddit by 38.4% in the third quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock valued at $396,632,000 after buying an additional 478,095 shares in the last quarter. Finally, Invesco Ltd. grew its stake in shares of Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after buying an additional 1,201,237 shares in the last quarter.

Analyst Ratings Changes

Several brokerages have issued reports on RDDT. Zacks Research raised Reddit from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Raymond James Financial set a $180.00 price target on Reddit and gave the company a "market perform" rating in a report on Friday, May 1st. Piper Sandler reaffirmed an "overweight" rating and set a $215.00 price target (up from $205.00) on shares of Reddit in a report on Friday, May 1st. B. Riley Financial raised their price target on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a report on Friday, February 6th. Finally, Bank of America cut their price target on Reddit from $205.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $228.61.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $157.15, for a total value of $2,828,700.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at $64,619,294.25. The trade was a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company's stock, valued at approximately $172,541,252.52. This trade represents a 3.47% 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 sold 241,999 shares of company stock valued at $36,678,168. 28.48% of the stock is currently owned by corporate insiders.

Reddit Stock Performance

RDDT opened at $176.41 on Monday. Reddit Inc. has a fifty-two week low of $106.34 and a fifty-two week high of $282.95. The company has a market capitalization of $33.96 billion, a P/E ratio of 50.40 and a beta of 1.91. The stock has a fifty day moving average of $149.56 and a 200-day moving average of $178.05.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $607.74 million. During the same quarter last year, the firm earned $0.13 earnings per share. The company's revenue was up 69.1% on a year-over-year basis. On average, equities research analysts predict that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

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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