Reddit Inc. $RDDT Shares Bought by Shelton Wealth Management LLC

Key Points

• Shelton Wealth Management increased its Reddit stake by 382.8% in the third quarter, owning 11,578 shares valued at approximately $1.65 million. Several other institutional investors, including State Street and Wellington Management, also expanded their positions.
• Reddit’s latest quarterly results exceeded expectations, with EPS of $1.25 versus a $0.95 consensus estimate and revenue of $804.9 million, up 61% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $219.29.
• Shares recently traded at $155.97, down 2.1%, while insiders sold more than 306,000 shares worth $49.8 million in the prior quarter. The stock remains volatile, with a beta of 2.05 and a 52-week range of $119.27 to $263.50.

Shelton Wealth Management LLC lifted its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 382.8% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 11,578 shares of the company's stock after purchasing an additional 9,180 shares during the quarter. Shelton Wealth Management LLC's holdings in Reddit were worth $1,649,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. State Street Corp boosted its stake in Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after purchasing an additional 237,523 shares during the period. Wellington Management Group LLP increased its holdings in Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock worth $271,572,000 after purchasing an additional 280,030 shares in the last quarter. DSM Capital Partners LLC raised its stake in shares of Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company's stock valued at $114,211,000 after purchasing an additional 42,808 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Reddit by 8.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company's stock valued at $83,647,000 after purchasing an additional 39,540 shares during the period. Finally, Bessemer Group Inc. lifted its holdings in shares of Reddit by 2.4% in the first quarter. Bessemer Group Inc. now owns 469,907 shares of the company's stock valued at $63,273,000 after purchasing an additional 10,996 shares in the last quarter.

Insider Activity

In other news, Director Robert Sauerberg sold 5,128 shares of the business's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director directly owned 27,087 shares in the company, valued at $4,331,753.04. The trade was a 15.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Jennifer Wong sold 75,000 shares of the company's stock in a transaction dated 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 sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 306,052 shares of company stock valued at $49,754,523 in the last quarter. Company insiders own 28.48% of the company's stock.

Wall Street Analysts Forecast Growth

RDDT has been the subject of several recent research reports. Telsey Advisory Group set a $240.00 price objective on Reddit in a research report on Friday, July 31st. Roth Capital reissued a "neutral" rating and issued a $145.00 target price on shares of Reddit in a research report on Monday, August 3rd. Truist Financial boosted their target price on Reddit from $265.00 to $275.00 and gave the company a "buy" rating in a research note on Friday, July 31st. DA Davidson lowered their price target on shares of Reddit from $200.00 to $185.00 and set a "buy" rating on the stock in a research note on Friday, September 18th. Finally, Wells Fargo & Company cut their price target on shares of Reddit from $187.00 to $142.00 and set an "equal weight" rating on the stock in a research report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $219.29.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: CNBC’s Jim Cramer recommended buying Reddit, describing the shares as “inexpensive.” The endorsement could improve retail-investor sentiment and draw attention to Reddit’s valuation. Jim Cramer recommends Reddit
• Neutral Sentiment: Reddit will report third-quarter results on Thursday, October 29. Investors are likely to focus on advertising growth, user trends and management’s outlook following the company’s previous quarterly revenue increase of 61% year over year. Reddit third-quarter earnings announcement
• Neutral Sentiment: Goldman Sachs maintained its Hold rating on RDDT, indicating that the firm does not see a sufficiently compelling risk-reward profile at current levels. Goldman Sachs maintains Hold rating
• Negative Sentiment: CEO Steve Huffman sold 17,308 shares for approximately $2.74 million, reducing his direct holdings by 4.89%. COO Jennifer Wong separately sold 60,000 shares for about $9.03 million, reducing her position by 5.60%. Both transactions were made under pre-arranged Rule 10b5-1 plans, which lessens—but does not eliminate—the negative signaling effect of insider selling. Reddit insider sales

Reddit Stock Down 2.1%

Shares of NYSE RDDT traded down $3.39 during trading hours on Friday, hitting $155.97. The company had a trading volume of 3,835,703 shares, compared to its average volume of 4,740,878. The stock has a market capitalization of $30.01 billion, a P/E ratio of 36.27, a price-to-earnings-growth ratio of 0.74 and a beta of 2.05. Reddit Inc. has a 1-year low of $119.27 and a 1-year high of $263.50. The firm's 50 day moving average is $154.22 and its 200-day moving average is $161.39.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. During the same period in the prior year, the firm 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 predict that Reddit Inc. will post 5.27 earnings per share for the current year.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and experiences. Registered users can submit posts, images, videos and links, while other users can comment, vote on content and engage in discussions. The platform comprises thousands of independently moderated communities, commonly known as subreddits.

Reddit generates revenue primarily through digital advertising and other commercial offerings for businesses.

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