Reddit Inc. $RDDT Stock Position Lessened by Carnegie Investment Counsel

Key Points

• Carnegie Investment Counsel nearly halved its Reddit position in the third quarter, selling 13,040 shares and retaining 13,489 shares valued at approximately $1.92 million. Other institutional investors, including Robeco and Prime Capital, increased their holdings.
• Reddit insiders have been net sellers, with executives and directors selling 306,052 shares worth about $49.8 million over the past three months. CEO Steve Huffman’s sale was conducted under a pre-arranged Rule 10b5-1 trading plan.
• Despite the selling, analysts maintain a “Moderate Buy” consensus with an average price target of $219.29. Reddit recently exceeded earnings and revenue expectations, reporting $1.25 EPS and $804.91 million in quarterly revenue, up 61% year over year.

Carnegie Investment Counsel cut its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 49.2% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 13,489 shares of the company's stock after selling 13,040 shares during the quarter. Carnegie Investment Counsel's holdings in Reddit were worth $1,921,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Robeco Institutional Asset Management B.V. grew its position in Reddit by 74.6% during 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 acquiring an additional 345,735 shares during the last quarter. Prime Capital Investment Advisors LLC lifted its holdings in shares of Reddit by 60.7% in the 3rd quarter. Prime Capital Investment Advisors LLC now owns 4,352 shares of the company's stock worth $620,000 after acquiring an additional 1,644 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in shares of Reddit by 34.3% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 25,367 shares of the company's stock worth $3,613,000 after acquiring an additional 6,482 shares during the last quarter. SteelPeak Wealth LLC purchased a new stake in shares of Reddit in the 3rd quarter valued at $1,880,000. Finally, TD Waterhouse Canada Inc. boosted its stake in shares of Reddit by 3.6% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 7,600 shares of the company's stock valued at $1,137,000 after purchasing an additional 261 shares in the last quarter.

Insiders Place Their Bets

In other news, CEO Steve Huffman sold 17,308 shares of the firm's stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the transaction, the chief executive officer directly owned 336,432 shares in the company, valued at $53,348,022.24. This trade represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the completion of the transaction, the director directly owned 27,087 shares of the company's stock, valued at $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 306,052 shares of company stock valued at $49,754,523. 28.48% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on RDDT shares. Oppenheimer lowered their price target on shares of Reddit from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. UBS Group reiterated a "buy" rating on shares of Reddit in a report on Friday, July 31st. Guggenheim reiterated a "buy" rating on shares of Reddit in a report on Wednesday, September 16th. Sanford C. Bernstein reissued a "market perform" rating and issued a $180.00 target price on shares of Reddit in a research note on Friday, July 31st. Finally, Evercore restated an "outperform" rating and set a $265.00 target price on shares of Reddit in a 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 assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $219.29.

Reddit Stock Down 2.0%

Shares of RDDT opened at $150.25 on Friday. The stock has a market capitalization of $28.91 billion, a P/E ratio of 35.65, a PEG ratio of 0.71 and a beta of 2.05. The firm has a fifty day simple moving average of $153.99 and a two-hundred day simple moving average of $162.15. 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company had revenue of $804.91 million for the quarter, compared to analysts' expectations of $731.00 million. During the same period last year, the firm earned $0.45 earnings per share. Reddit's quarterly revenue was up 61.0% on a year-over-year basis. Sell-side analysts expect that Reddit Inc. will post 5.27 EPS for the current fiscal year.

Reddit Company Profile

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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