Swedbank AB Has $6.22 Million Stake in Reddit Inc. $RDDT

Key Points

• Swedbank AB trimmed its Reddit stake by 11.3% in the first quarter, selling 5,865 shares and ending with 46,216 shares worth about $6.22 million.
• Reddit reported strong first-quarter results, with earnings of $1.01 per share versus $0.62 expected and revenue of $663.41 million, up 69.1% year over year.
• Analysts remain cautiously positive on RDDT, with 18 Buy ratings and 12 Hold ratings, giving the stock a consensus “Moderate Buy” and an average target price of $231.14.

Swedbank AB lowered its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 11.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 46,216 shares of the company's stock after selling 5,865 shares during the period. Swedbank AB's holdings in Reddit were worth $6,223,000 at the end of the most recent quarter.

Several other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in shares of Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after buying an additional 1,083,540 shares during the period. Capital World Investors acquired a new position in shares of Reddit during the fourth quarter valued at $1,293,258,000. State Street Corp boosted its holdings in Reddit by 6.0% in the fourth quarter. State Street Corp now owns 2,631,332 shares of the company's stock valued at $604,864,000 after acquiring an additional 149,401 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Reddit by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock valued at $546,789,000 after acquiring an additional 106,821 shares during the last quarter. Finally, Morgan Stanley increased its position in Reddit by 11.4% in the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company's stock worth $545,354,000 after purchasing an additional 242,709 shares during the period.

Reddit Stock Performance

RDDT traded down $5.22 during midday trading on Friday, reaching $195.09. 3,746,228 shares of the company were exchanged, compared to its average volume of 3,928,101. The stock has a market capitalization of $37.56 billion, a P/E ratio of 55.74 and a beta of 1.93. Reddit Inc. has a one year low of $119.27 and a one year high of $282.95. The stock's 50-day simple moving average is $169.48 and its 200 day simple moving average is $170.92.

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 the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same quarter in the previous year, the business earned $0.13 EPS. The firm's revenue was up 69.1% on a year-over-year basis. On average, research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current year.

Insiders Place Their Bets

In other Reddit news, CAO Michelle Marie Reynolds sold 808 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the transaction, the chief accounting officer directly owned 15,060 shares of the company's stock, valued at approximately $3,012,000. The trade was a 5.09% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $157.15, for a total value of $2,828,700.00. Following the completion of the sale, the chief executive officer owned 411,195 shares of the company's stock, valued at $64,619,294.25. This trade represents a 4.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 226,308 shares of company stock worth $37,856,340. Corporate insiders own 28.48% of the company's stock.

Analyst Upgrades and Downgrades

RDDT has been the subject of several recent research reports. Zacks Research cut Reddit from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 3rd. The Goldman Sachs Group reiterated a "neutral" rating and set a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a research note on Sunday, May 10th. Citizens Jmp cut their price objective on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a report on Friday, May 1st. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Reddit in a research note on Tuesday, May 26th. Eighteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $231.14.

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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