Reddit Inc. $RDDT Stock: Investment House LLC Reduces Stake

Key Points

• Investment House LLC reduced its Reddit stake by 29.9% in the third quarter, selling 17,930 shares and retaining 42,053 shares valued at approximately $5.99 million.
• Other institutional investors increased their positions, including State Street, Wellington Management and Robeco. Reddit shares opened at $150.25, down 2%, with the stock trading below its 50-day and 200-day moving averages.
• Reddit exceeded quarterly earnings and revenue estimates, with EPS of $1.25 and revenue of $804.91 million, while analysts maintained a “Moderate Buy” consensus and an average price target of $219.29. Insiders sold more than 306,000 shares worth about $49.8 million during the latest quarter.

Investment House LLC trimmed its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 29.9% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 42,053 shares of the company's stock after selling 17,930 shares during the quarter. Investment House LLC's holdings in Reddit were worth $5,990,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of RDDT. State Street Corp lifted its holdings in Reddit by 8.7% during the second quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after buying an additional 237,523 shares during the period. Wellington Management Group LLP raised its position in Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock valued at $271,572,000 after acquiring an additional 280,030 shares in the last quarter. DSM Capital Partners LLC raised its holdings in Reddit by 5.3% in the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company's stock worth $114,211,000 after purchasing an additional 42,808 shares during the period. Robeco Institutional Asset Management B.V. grew its position in shares of Reddit by 74.6% in the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock valued at $115,243,000 after purchasing an additional 345,735 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in 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 last quarter.

Reddit Trading Down 2.0%

Shares of RDDT opened at $150.25 on Friday. The firm's 50-day moving average is $153.99 and its two-hundred day moving average is $162.15. The firm has a market capitalization of $28.91 billion, a P/E ratio of 34.94, a PEG ratio of 0.71 and a beta of 2.05. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $263.50.

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

Analysts Set New Price Targets

RDDT has been the subject of a number of recent research reports. Cantor Fitzgerald cut their target price on Reddit from $200.00 to $170.00 and set a "neutral" rating for the company in a research note on Friday, July 31st. Evercore reiterated an "outperform" rating and set a $265.00 target price on shares of Reddit in a research note on Friday, July 31st. Jefferies Financial Group set a $250.00 price target on Reddit in a research note on Friday, July 10th. Oppenheimer cut their price target on Reddit from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Finally, Wells Fargo & Company reduced their target price on shares of Reddit from $187.00 to $142.00 and set an "equal weight" rating for the company in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, Reddit presently has an average rating of "Moderate Buy" and an average price target of $219.29.

Insider Transactions at Reddit

In other news, Director Robert A. Sauerberg sold 5,128 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the transaction, the director owned 27,087 shares of the company's stock, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 60,000 shares of the stock in a transaction dated Wednesday, October 14th. The stock was sold at an average price of $150.55, for a total transaction of $9,033,000.00. Following the completion of the sale, the chief operating officer directly owned 1,012,226 shares in the company, valued at approximately $152,390,624.30. This trade represents a 5.60% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 306,052 shares of company stock valued at $49,754,523 over the last quarter. Company insiders own 28.48% of the company's stock.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.

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