Sumitomo Mitsui Trust Group Inc. Reduces Holdings in Reddit Inc. $RDDT

Key Points

• Sumitomo Mitsui Trust Group cut its position by 47.6% in Q4, selling 192,558 shares and leaving 212,355 shares (about 0.11% of Reddit) worth roughly $48.8 million.
• Reddit beat earnings with $1.24 EPS versus $0.96 expected and revenue of $725.6M (up 69.7% year‑over‑year), reporting a 24.05% net margin and 20.89% ROE.
• Analysts maintain a consensus "Moderate Buy" with a $237.46 target while the stock trades near $158.47 (1‑year range $90.78–$282.95); insiders have been net sellers recently (294,441 shares sold vs. 61,000 bought over 90 days).

Sumitomo Mitsui Trust Group Inc. cut its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 47.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 212,355 shares of the company's stock after selling 192,558 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.11% of Reddit worth $48,814,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Robeco Institutional Asset Management B.V. grew its holdings in shares of Reddit by 1.6% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 125,631 shares of the company's stock worth $28,879,000 after buying an additional 2,024 shares in the last quarter. Diversify Advisory Services LLC purchased a new stake in shares of Reddit during the fourth quarter worth about $523,000. Carnegie Investment Counsel grew its holdings in shares of Reddit by 4.0% during the fourth quarter. Carnegie Investment Counsel now owns 164,910 shares of the company's stock worth $37,908,000 after buying an additional 6,413 shares in the last quarter. Whitaker Myers Wealth Managers LTD. grew its holdings in shares of Reddit by 70.8% during the fourth quarter. Whitaker Myers Wealth Managers LTD. now owns 7,211 shares of the company's stock worth $1,658,000 after buying an additional 2,988 shares in the last quarter. Finally, Personal CFO Solutions LLC purchased a new stake in shares of Reddit during the fourth quarter worth about $218,000.

Wall Street Analyst Weigh In

RDDT has been the subject of a number of recent research reports. Zacks Research downgraded shares of Reddit from a "strong-buy" rating to a "hold" rating in a report on Friday, December 26th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $285.00 price target on shares of Reddit in a research report on Tuesday, January 20th. Wells Fargo & Company initiated coverage on shares of Reddit in a research report on Tuesday, April 7th. They set an "equal weight" rating and a $149.00 price target on the stock. Robert W. Baird set a $200.00 target price on shares of Reddit in a research report on Friday, February 6th. Finally, Piper Sandler reissued an "overweight" rating and set a $205.00 target price (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $237.46.

Reddit Price Performance

RDDT stock opened at $158.47 on Thursday. Reddit Inc. has a 1-year low of $90.78 and a 1-year high of $282.95. The firm has a fifty day moving average price of $140.96 and a two-hundred day moving average price of $188.27. The firm has a market cap of $30.27 billion, a price-to-earnings ratio of 60.48, a PEG ratio of 1.12 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The firm had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same quarter in the previous year, the firm earned $0.36 earnings per share. The firm's revenue for the quarter was up 69.7% compared to the same quarter last year. As a group, analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insider Activity

In other news, COO Jennifer L. Wong sold 33,507 shares of the company's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total transaction of $4,805,238.87. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $156,094,757.91. This represents a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Christopher Brian Slowe sold 19,036 shares of the company's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the transaction, the chief technology officer owned 185,057 shares of the company's stock, valued at $26,657,460.85. This represents a 9.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have acquired 61,000 shares of company stock worth $8,870,815 and have sold 294,441 shares worth $46,813,210. Insiders own 34.25% of the company's stock.

Reddit Company Profile

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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