Reddit Inc. $RDDT Shares Sold by Teacher Retirement System of Texas

Key Points

• Teacher Retirement System of Texas cut its stake in Reddit by 49.7% in Q4, selling 82,091 shares and retaining 83,012 shares valued at about $19.08 million.
• Insiders were mixed: CEO Steve Huffman sold 18,000 shares for roughly $2.61 million while director Sarah E. Farrell bought 43,800 shares (~$6.55 million); over the quarter insiders bought 61,000 shares and sold 298,441 shares, and insiders now own 34.25% of Reddit.
• Reddit recently beat Q4 expectations with EPS $1.24 vs. $0.96 expected and revenue $725.6M vs. $665.8M (revenue +69.7% YoY), and analysts have a consensus rating of "Moderate Buy" with a $234.22 target.

Teacher Retirement System of Texas lessened its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 49.7% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 83,012 shares of the company's stock after selling 82,091 shares during the quarter. Teacher Retirement System of Texas' holdings in Reddit were worth $19,082,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Resona Asset Management Co. Ltd. lifted its holdings in shares of Reddit by 53.2% in the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company's stock valued at $7,166,000 after buying an additional 10,743 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Reddit by 12.9% in the 3rd 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 during the period. Optimize Financial Inc acquired a new position in shares of Reddit in the 3rd quarter valued at about $1,420,000. WT Asset Management Ltd acquired a new position in shares of Reddit in the 3rd quarter valued at about $92,973,000. Finally, Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Reddit by 95.4% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company's stock valued at $3,712,000 after buying an additional 7,881 shares during the period.

Insiders Place Their Bets

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $145.12, for a total transaction of $2,612,160.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at $59,672,618.40. This represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Sarah E. Farrell bought 43,800 shares of Reddit stock in a transaction on Tuesday, February 10th. The shares were purchased at an average cost of $149.52 per share, with a total value of $6,548,976.00. Following the acquisition, the director directly owned 43,800 shares of the company's stock, valued at approximately $6,548,976. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders purchased 61,000 shares of company stock worth $8,870,815 and sold 298,441 shares worth $44,170,999. 34.25% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Weiss Ratings reissued a "hold (c-)" rating on shares of Reddit in a report on Monday, December 29th. Truist Financial decreased their price objective on Reddit from $275.00 to $260.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Wall Street Zen cut Reddit from a "buy" rating to a "hold" rating in a report on Wednesday, April 8th. Guggenheim upped their price target on Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, February 6th. Finally, Roth Mkm upped their price target on Reddit from $210.00 to $215.00 and gave the stock a "neutral" rating in a report on Friday, January 30th. One 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. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $234.22.

Reddit Trading Up 1.2%

NYSE RDDT opened at $154.79 on Friday. The stock has a market capitalization of $29.57 billion, a price-to-earnings ratio of 59.08, a PEG ratio of 1.11 and a beta of 2.40. Reddit Inc. has a twelve month low of $94.89 and a twelve month high of $282.95. The stock has a 50-day moving average of $143.49 and a 200 day moving average of $185.81.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.28. The company had revenue of $725.61 million during the quarter, compared to analysts' expectations of $665.80 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.Reddit's quarterly revenue was up 69.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.36 EPS. Equities analysts predict that Reddit Inc. will post 4.02 EPS for the current fiscal year.

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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