State Street Corp Raises Stock Position in Reddit Inc. $RDDT

Key Points

• State Street increased its Reddit stake by 8.7% in the second quarter, acquiring 237,523 additional shares for a total holding of 2.98 million shares valued at approximately $517.2 million.
• Reddit reported stronger-than-expected quarterly results, with EPS of $1.25 versus the $0.95 consensus estimate and revenue of $804.9 million, up 61% year over year.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $219.29, although Reddit shares opened at $152.09 and insiders sold $38.7 million of stock over the past 90 days.

State Street Corp increased its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 8.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,979,587 shares of the company's stock after acquiring an additional 237,523 shares during the quarter. State Street Corp owned about 1.55% of Reddit worth $517,197,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. Sunbelt Securities Inc. increased its position 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 acquiring an additional 91 shares during the period. Ascentis Independent Advisors acquired a new stake in Reddit during the 1st quarter worth about $30,000. EverSource Wealth Advisors LLC lifted its position in Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock worth $34,000 after acquiring an additional 64 shares during the period. Beacon Investment Advisory Services Inc. purchased a new stake in Reddit during the 2nd quarter valued at about $35,000. Finally, V Square Quantitative Management LLC purchased a new stake in Reddit during the 1st quarter valued at about $43,000.

Analyst Ratings Changes

A number of research firms have issued reports on RDDT. Loop Capital reissued a "buy" rating and set a $260.00 price target on shares of Reddit in a research report on Thursday, June 4th. Evercore reiterated an "outperform" rating and issued a $265.00 price objective on shares of Reddit in a research note on Friday, July 31st. Jefferies Financial Group set a $250.00 target price on shares of Reddit in a report on Friday, July 10th. Telsey Advisory Group set a $240.00 target price on shares of Reddit in a research report on Friday, July 31st. Finally, DA Davidson lowered their price target on shares of Reddit from $200.00 to $185.00 and set a "buy" rating on the stock in a report on Friday, September 18th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $219.29.

Reddit Stock Down 2.3%

RDDT opened at $152.09 on Thursday. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $263.50. The company has a 50-day moving average price of $160.28 and a 200 day moving average price of $159.75. The company has a market cap of $29.26 billion, a PE ratio of 35.37, a price-to-earnings-growth ratio of 0.72 and a beta of 2.02.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $804.91 million for the quarter, compared to analysts' expectations of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.Reddit's revenue was up 61.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.45 EPS. As a group, sell-side analysts expect that Reddit Inc. will post 5.27 earnings per share for the current year.

Insider Transactions at Reddit

In other news, COO Jennifer L. Wong sold 75,000 shares of the stock in a transaction dated 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 completion of the sale, the chief operating officer directly owned 1,050,339 shares in the company, valued at $187,538,028.45. This represents a 6.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the firm's 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 in the company, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 230,244 shares of company stock valued at $38,747,524 in the last 90 days. 28.48% of the stock is owned by company insiders.

Reddit Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.

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