Stephens Inc. AR Reduces Holdings in Reddit Inc. $RDDT

Key Points

• Stephens Inc. AR sharply cut its Reddit stake in the fourth quarter, reducing holdings by 87.6% and selling 11,756 shares, leaving it with 1,667 shares valued at about $383,000.
• Reddit posted strong quarterly results, reporting EPS of $1.01 versus the $0.62 estimate and revenue of $663.41 million, up 69.1% year over year and above expectations.
• Analysts remain cautiously positive overall, with a consensus “Moderate Buy” rating and an average target price of $228.61, even as some firms trimmed price targets and insiders recently sold shares.

Stephens Inc. AR decreased its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 87.6% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,667 shares of the company's stock after selling 11,756 shares during the quarter. Stephens Inc. AR's holdings in Reddit were worth $383,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. State Street Corp lifted its holdings in shares of Reddit by 22.3% during the third quarter. State Street Corp now owns 2,481,931 shares of the company's stock worth $570,819,000 after purchasing an additional 451,792 shares during the period. Bank of America Corp DE lifted its holdings in shares of Reddit by 38.4% during the third quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock worth $396,632,000 after purchasing an additional 478,095 shares during the period. Invesco Ltd. lifted its holdings in shares of Reddit by 419.0% during the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock worth $342,212,000 after purchasing an additional 1,201,237 shares during the period. Finally, Nordea Investment Management AB lifted its holdings in shares of Reddit by 4.3% during the fourth quarter. Nordea Investment Management AB now owns 1,151,360 shares of the company's stock worth $265,273,000 after purchasing an additional 47,187 shares during the period.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on RDDT. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 target price on shares of Reddit in a report on Friday, May 1st. Raymond James Financial set a $180.00 target price on Reddit and gave the stock a "market perform" rating in a report on Friday, May 1st. Truist Financial set a $265.00 target price on Reddit in a report on Friday, May 1st. Jefferies Financial Group decreased their target price on Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a report on Tuesday, March 10th. Finally, Robert W. Baird set a $200.00 target price on Reddit in a report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Reddit has a consensus rating of "Moderate Buy" and a consensus target price of $228.61.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $145.12, for a total value of $2,612,160.00. Following the completion of the transaction, the chief executive officer directly owned 411,195 shares of the company's stock, valued at approximately $59,672,618.40. The trade was a 4.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Jennifer L. Wong sold 39,167 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total value of $6,324,295.49. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company's stock, valued at $175,752,182.97. The trade was a 3.47% decrease in their ownership of the stock. 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. Over the last ninety days, insiders sold 326,144 shares of company stock valued at $48,788,412. 34.25% of the stock is owned by company insiders.

Reddit Trading Down 5.4%

Shares of NYSE:RDDT opened at $141.87 on Friday. Reddit Inc. has a 12-month low of $95.23 and a 12-month high of $282.95. The company has a market capitalization of $27.31 billion, a PE ratio of 40.53 and a beta of 1.85. The business has a 50 day moving average of $147.67 and a two-hundred day moving average of $179.50.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same period in the previous year, the company posted $0.13 earnings per share. Reddit's revenue for the quarter was up 69.1% on a year-over-year basis. Equities research analysts predict that Reddit Inc. will post 4.83 earnings per share 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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