Norges Bank Buys Shares of 1,618,511 Reddit Inc. $RDDT

Key Points

• Norges Bank disclosed a new stake in Reddit, buying 1,618,511 shares valued at about $372 million, giving it roughly 0.85% ownership of the company.
• Reddit’s latest quarterly results were strong: it reported $1.01 EPS versus $0.62 expected and revenue of $663.4 million, up 69.1% year over year and above estimates.
• Despite the upbeat earnings, insiders have been selling shares, including CEO Steve Huffman and CTO Christopher Slowe; analysts currently rate the stock a Moderate Buy with an average target price of $228.61.

Norges Bank bought a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 1,618,511 shares of the company's stock, valued at approximately $372,047,000. Norges Bank owned approximately 0.85% of Reddit at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Huntington National Bank grew its position in Reddit by 25.6% during the third quarter. Huntington National Bank now owns 270 shares of the company's stock worth $62,000 after buying an additional 55 shares in the last quarter. Institute for Wealth Management LLC. grew its position in Reddit by 6.1% during the fourth quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock worth $246,000 after buying an additional 62 shares in the last quarter. Roxbury Financial LLC grew its position in Reddit by 7.4% during the fourth quarter. Roxbury Financial LLC now owns 929 shares of the company's stock worth $214,000 after buying an additional 64 shares in the last quarter. IFP Advisors Inc grew its position in Reddit by 9.9% during the third quarter. IFP Advisors Inc now owns 796 shares of the company's stock worth $183,000 after buying an additional 72 shares in the last quarter. Finally, Yousif Capital Management LLC grew its position in Reddit by 5.1% during the fourth quarter. Yousif Capital Management LLC now owns 1,554 shares of the company's stock worth $350,000 after buying an additional 75 shares in the last quarter.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. decreased their price objective on Reddit from $227.00 to $200.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Zacks Research raised Reddit from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Evercore reaffirmed an "outperform" rating and set a $290.00 price objective on shares of Reddit in a report on Friday, February 6th. Bank of America decreased their price objective on Reddit from $205.00 to $175.00 and set a "neutral" rating on the stock in a report on Thursday, April 2nd. Finally, Jefferies Financial Group decreased their price objective on Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a report on Tuesday, March 10th. One research 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 company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $228.61.

Insider Buying and Selling

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $171.80, for a total transaction of $3,092,400.00. Following the transaction, the chief executive officer owned 411,195 shares in the company, valued at $70,643,301. This trade represents a 4.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the company's stock in a transaction dated 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 sale, the chief technology officer directly owned 38,413 shares of the company's stock, valued at $5,787,686.71. This represents a 28.75% 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. Insiders have sold 241,999 shares of company stock worth $36,678,168 over the last 90 days. 34.25% of the stock is currently owned by insiders.

Reddit Stock Up 0.9%

NYSE:RDDT opened at $177.56 on Tuesday. Reddit Inc. has a 12-month low of $109.16 and a 12-month high of $282.95. The firm has a market capitalization of $34.18 billion, a P/E ratio of 50.73 and a beta of 1.85. The stock's fifty day simple moving average is $150.34 and its 200-day simple moving average is $177.84.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The business had revenue of $663.41 million during the quarter, compared to analysts' expectations of $607.74 million. During the same quarter in the prior year, the company earned $0.13 EPS. The firm's quarterly revenue was up 69.1% on a year-over-year basis. As a group, equities research analysts expect that Reddit Inc. will post 4.83 earnings per share for the current year.

Reddit Company 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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