Stephens Investment Management Group LLC Has $30.33 Million Position in Reddit Inc. $RDDT

Key Points

• Stephens Investment Management Group cut its Reddit stake by 40.8% in the fourth quarter, but still held 131,922 shares valued at about $30.33 million at the end of the period.
• Insider selling has been notable: Reddit CTO Christopher Brian Slowe and CEO Steve Huffman both sold shares in February, and insiders sold 268,977 shares worth about $39.75 million over the last 90 days.
• Reddit’s latest quarterly results were strong, with EPS of $1.01 topping estimates and revenue rising 69.1% year over year to $663.41 million, while analysts currently rate the stock a Moderate Buy with a consensus price target of $228.61.

Stephens Investment Management Group LLC lessened its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 40.8% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 131,922 shares of the company's stock after selling 91,041 shares during the period. Stephens Investment Management Group LLC owned 0.07% of Reddit worth $30,325,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Raiffeisen Bank International AG acquired a new position in Reddit during the third quarter worth $25,000. GW&K Investment Management LLC acquired a new position in Reddit during the third quarter worth $30,000. Cornerstone Planning Group LLC raised its holdings in Reddit by 13,500.0% during the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock worth $31,000 after buying an additional 135 shares during the last quarter. LOM Asset Management Ltd acquired a new position in Reddit during the fourth quarter worth $33,000. Finally, Noble Wealth Management PBC acquired a new position in Reddit during the fourth quarter worth $34,000.

Analyst Upgrades and Downgrades

Several research firms have weighed in on RDDT. Bank of America lowered their price objective on shares of Reddit from $205.00 to $175.00 and set a "neutral" rating on the stock in a report on Thursday, April 2nd. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $285.00 price objective on shares of Reddit in a report on Tuesday, January 20th. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Wells Fargo & Company upped their price objective on shares of Reddit from $149.00 to $176.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Finally, Roth Mkm upped their price objective on shares of 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 issued a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $228.61.

Insider Activity at Reddit

In related news, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the completion of the transaction, the chief technology officer owned 185,057 shares in the company, valued at approximately $26,657,460.85. This represents a 9.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $145.12, for a total transaction of $2,612,160.00. Following the sale, the chief executive officer directly owned 411,195 shares in the company, valued at approximately $59,672,618.40. This trade represents a 4.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 268,977 shares of company stock worth $39,750,959. 34.25% of the stock is owned by company insiders.

Reddit Stock Performance

RDDT opened at $158.44 on Monday. The firm has a market cap of $30.50 billion, a P/E ratio of 45.27 and a beta of 1.85. The firm has a 50-day moving average of $146.48 and a 200 day moving average of $181.30. Reddit Inc. has a fifty-two week low of $94.89 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm's revenue for the quarter was up 69.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.13 earnings per share. 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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