Northwestern Mutual Wealth Management Co. Acquires 36,090 Shares of Reddit Inc. $RDDT

Key Points

• Northwestern Mutual Wealth Management increased its Reddit stake by 17.5% in the second quarter, purchasing 36,090 additional shares and bringing its holdings to 241,980 shares valued at approximately $42 million.
• Reddit reported strong quarterly results, with earnings of $1.25 per share versus the $0.95 consensus estimate and revenue of $804.91 million, up 61% year over year and above expectations.
• Insiders have been selling shares under pre-arranged Rule 10b5-1 plans, including 75,000 shares sold by the COO and 18,000 by the CEO. Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $221.10.

Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 17.5% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 241,980 shares of the company's stock after purchasing an additional 36,090 shares during the period. Northwestern Mutual Wealth Management Co. owned 0.13% of Reddit worth $42,003,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of the business. Capital World Investors acquired a new stake in shares of Reddit in the fourth quarter valued at $1,293,258,000. State Street Corp lifted its position in Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company's stock worth $604,864,000 after buying an additional 149,401 shares in the last quarter. Geode Capital Management LLC grew its holdings in Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock worth $546,789,000 after acquiring an additional 106,821 shares during the last quarter. Morgan Stanley increased its position in Reddit by 11.4% in the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company's stock valued at $545,354,000 after acquiring an additional 242,709 shares in the last quarter. Finally, Invesco Ltd. increased its position in Reddit by 36.7% in the 4th quarter. Invesco Ltd. now owns 2,033,626 shares of the company's stock valued at $467,470,000 after acquiring an additional 545,685 shares in the last quarter.

Insider Transactions at Reddit

In other news, COO Jennifer L. Wong sold 75,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares of the company's stock, valued at $187,538,028.45. This trade represents a 6.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the sale, the chief executive officer owned 373,814 shares in the company, valued at $66,598,702.24. This trade represents a 4.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 192,102 shares of company stock worth $33,710,892. Insiders own 28.48% of the company's stock.

Reddit Stock Performance

Shares of RDDT opened at $144.25 on Wednesday. The firm has a market cap of $27.75 billion, a P/E ratio of 33.55, a PEG ratio of 0.49 and a beta of 2.02. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $282.95. The firm's 50 day moving average price is $170.91 and its two-hundred day moving average price is $158.53.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating analysts' consensus estimates of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. During the same period in the previous year, the company posted $0.45 earnings per share. The company's quarterly revenue was up 61.0% compared to the same quarter last year. On average, sell-side analysts anticipate that Reddit Inc. will post 5.27 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts have recently commented on the stock. B. Riley Financial increased their price target on shares of Reddit from $250.00 to $270.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Jefferies Financial Group set a $250.00 target price on Reddit in a research note on Friday, July 10th. DA Davidson reaffirmed a "buy" rating and issued a $200.00 target price on shares of Reddit in a research note on Thursday, July 23rd. Citigroup reaffirmed a "market outperform" rating on shares of Reddit in a research note on Monday, August 24th. Finally, Roth Capital reiterated a "neutral" rating and set a $145.00 target price on shares of Reddit in a research report on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus target price of $221.10.

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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