Reddit Inc. $RDDT Shares Sold by Alliancebernstein L.P.

Key Points

• AllianceBernstein trimmed its stake in Reddit by 10%, selling 342,305 shares and ending the quarter with 3,085,340 shares (1.63%) valued at about $709.6 million.
• Reddit reported a strong quarter—EPS $1.24 vs $0.96 estimate and revenue $725.61M (up 69.7% YoY vs $665.80M consensus)—and the stock carries a $25.26B market cap with an average analyst price target of $236 ("Moderate Buy").
• Insider activity was notable: insiders sold 433,335 shares (~$89.1M) over the last three months while Director Sarah E. Farrell bought 43,800 shares at $149.52.

Alliancebernstein L.P. trimmed its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 10.0% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 3,085,340 shares of the company's stock after selling 342,305 shares during the period. Alliancebernstein L.P. owned 1.63% of Reddit worth $709,597,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Resona Asset Management Co. Ltd. boosted its stake in Reddit by 53.2% during the third quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company's stock worth $7,166,000 after buying an additional 10,743 shares during the period. Vanguard Group Inc. grew its stake in shares of Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after buying an additional 1,401,293 shares in the last quarter. Optimize Financial Inc purchased a new position in Reddit during the 3rd quarter valued at about $1,420,000. WT Asset Management Ltd purchased a new stake in Reddit during the third quarter worth about $92,973,000. Finally, Wealth Enhancement Advisory Services LLC grew its holdings in shares of Reddit by 95.4% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company's stock valued at $3,712,000 after purchasing an additional 7,881 shares in the last quarter.

Reddit Trading Down 0.0%

NYSE RDDT opened at $132.21 on Friday. Reddit Inc. has a 12-month low of $79.75 and a 12-month high of $282.95. The business's 50 day moving average is $177.60 and its two-hundred day moving average is $204.92. The stock has a market capitalization of $25.26 billion, a price-to-earnings ratio of 50.46, a PEG ratio of 0.96 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The business had revenue of $725.61 million during the quarter, compared to the consensus estimate of $665.80 million. During the same quarter last year, the firm posted $0.36 EPS. The business's revenue was up 69.7% compared to the same quarter last year. Equities analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Activity

In other Reddit news, insider Benjamin Seong Lee sold 55,005 shares of the business's stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $221.21, for a total value of $12,167,656.05. Following the completion of the transaction, the insider directly owned 62,608 shares in the company, valued at approximately $13,849,515.68. The trade was a 46.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Sarah E. Farrell purchased 43,800 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was acquired at an average cost of $149.52 per share, for a total transaction of $6,548,976.00. Following the completion of the purchase, the director owned 43,800 shares in the company, valued at $6,548,976. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders sold 433,335 shares of company stock worth $89,139,359. 34.25% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

RDDT has been the topic of several analyst reports. Piper Sandler reiterated an "overweight" rating and issued a $205.00 price objective (down from $290.00) on shares of Reddit in a research note on Friday, February 6th. Morgan Stanley set a $240.00 price objective on shares of Reddit in a research report on Friday, February 6th. Cantor Fitzgerald lowered their price objective on Reddit from $240.00 to $170.00 and set a "neutral" rating for the company in a research report on Friday, February 6th. Guggenheim upped their price target on Reddit from $245.00 to $255.00 and gave the company a "buy" rating in a report on Friday, February 6th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $300.00 price target on shares of Reddit in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $236.00.

About Reddit

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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