Truist Financial Corp Increases Stake in Reddit Inc. $RDDT

Key Points

• Truist Financial Corp boosted its stake in Reddit by 67.7% in the fourth quarter, adding 6,321 shares and bringing its total holdings to 15,659 shares worth about $3.6 million.
• Institutional investors remained active in Reddit, with firms like Vanguard, State Street, Bank of America, and Invesco all increasing their positions during recent reporting periods.
• Reddit reported strong quarterly results, beating EPS and revenue estimates with $1.01 EPS and $663.41 million in revenue, while analysts currently maintain a Moderate Buy consensus and average price target of $228.61.

Truist Financial Corp lifted its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 67.7% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 15,659 shares of the company's stock after purchasing an additional 6,321 shares during the period. Truist Financial Corp's holdings in Reddit were worth $3,600,000 as of its most recent filing with the SEC.

Other large investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake 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 valued at $3,062,339,000 after buying an additional 1,083,540 shares during the last quarter. State Street Corp grew its position in Reddit by 22.3% during the 3rd quarter. State Street Corp now owns 2,481,931 shares of the company's stock worth $570,819,000 after acquiring an additional 451,792 shares during the last quarter. Bank of America Corp DE grew its position in Reddit by 38.4% during the 3rd quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock worth $396,632,000 after acquiring an additional 478,095 shares during the last quarter. Invesco Ltd. boosted its position in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after buying an additional 1,201,237 shares during the period. Finally, Nordea Investment Management AB raised its stake 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 valued at $265,273,000 after acquiring an additional 47,187 shares during the last quarter.

Insider Activity at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $175,752,182.97. The trade was a 3.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 19,036 shares of the business's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $144.05, for a total value of $2,742,135.80. Following the completion of the sale, the chief technology officer directly owned 185,057 shares in the company, valued at $26,657,460.85. This trade represents a 9.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 286,977 shares of company stock valued at $42,249,539 in the last 90 days. Corporate insiders own 34.25% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on RDDT shares. Needham & Company LLC reissued a "buy" rating and set a $300.00 target price on shares of Reddit in a research note on Friday, May 1st. Rothschild & Co Redburn set a $110.00 price target on Reddit in a research note on Monday, April 27th. Oppenheimer reiterated an "outperform" rating and issued a $225.00 price target on shares of Reddit in a report on Friday, May 1st. Bank of America dropped their target price on shares of Reddit from $205.00 to $175.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Finally, Wells Fargo & Company lifted their target price on shares of Reddit from $149.00 to $176.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and an average price target of $228.61.

Reddit Stock Performance

Shares of RDDT opened at $159.83 on Tuesday. The stock has a market cap of $30.77 billion, a PE ratio of 45.66 and a beta of 1.85. Reddit Inc. has a fifty-two week low of $94.89 and a fifty-two week high of $282.95. The firm's 50-day simple moving average is $145.75 and its two-hundred day simple moving average is $182.78.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same quarter last year, the firm earned $0.13 earnings per share. The business's revenue for the quarter was up 69.1% on a year-over-year basis. Equities research analysts predict that Reddit Inc. will post 4.78 EPS for the current year.

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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