Reddit Inc. $RDDT Shares Sold by Fund 1 Investments LLC

Key Points

• Fund 1 Investments LLC cut its Reddit stake by 84.1% in the second quarter, selling 443,750 shares and retaining 83,650 shares valued at approximately $14.5 million.
• Reddit insiders have sold 210,102 shares worth $36.4 million over the past 90 days, including sales by COO Jennifer Wong and CEO Steve Huffman under pre-arranged Rule 10b5-1 plans.
• Despite mixed analyst moves and a “Moderate Buy” consensus, Reddit beat quarterly earnings and revenue estimates, reporting $1.25 EPS and $804.9 million in revenue, up 61% year over year.

Fund 1 Investments LLC trimmed its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 84.1% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 83,650 shares of the company's stock after selling 443,750 shares during the quarter. Reddit makes up 2.4% of Fund 1 Investments LLC's portfolio, making the stock its 12th biggest position. Fund 1 Investments LLC's holdings in Reddit were worth $14,520,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently modified their holdings of the company. Sunbelt Securities Inc. raised its stake in shares of Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after purchasing an additional 91 shares in the last quarter. Ascentis Independent Advisors acquired a new position in Reddit in the first quarter worth about $30,000. EverSource Wealth Advisors LLC increased its holdings in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock valued at $34,000 after buying an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. acquired a new stake in Reddit during the second quarter valued at approximately $35,000. Finally, Geneos Wealth Management Inc. raised its stake in Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after buying an additional 286 shares in the last quarter.

Insider Activity

In other Reddit news, COO Jennifer 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 value of $13,391,250.00. Following the sale, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This trade represents a 6.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $148.02, for a total value of $2,664,360.00. Following the sale, the chief executive officer directly owned 336,432 shares in the company, valued at approximately $49,798,664.64. This trade represents a 5.08% decrease in their position. 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. Insiders have sold a total of 210,102 shares of company stock worth $36,375,252 over the last ninety days. 28.48% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

RDDT has been the topic of a number of research analyst reports. Wall Street Zen downgraded Reddit from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Telsey Advisory Group set a $240.00 price target on Reddit in a report on Friday, July 31st. JPMorgan Chase & Co. dropped their price target on Reddit from $200.00 to $185.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. Piper Sandler restated an "overweight" rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a research note on Friday, July 31st. Finally, UBS Group reaffirmed a "buy" rating on shares of Reddit in a report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus price target of $221.10.

Reddit Stock Performance

Reddit stock opened at $154.18 on Friday. The company has a 50-day simple moving average of $170.58 and a 200-day simple moving average of $158.80. The firm has a market capitalization of $29.66 billion, a P/E ratio of 35.86, a P/E/G ratio of 0.71 and a beta of 2.02. Reddit Inc. has a one year low of $119.27 and a one year high of $282.95.

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