Vanguard Group Inc. Acquires 1,401,293 Shares of Reddit Inc. $RDDT

Key Points

• Vanguard Group Inc. raised its stake in Reddit by 12.9% in Q3, buying 1,401,293 shares to hold 12,238,508 shares (a 6.54% stake) valued at about $2.81 billion.
• Reddit beat Q expectations with EPS of $1.24 versus $0.96 estimated and revenue of $725.6M versus $665.8M, with revenue up 69.7% year-over-year; the stock trades at a market cap of $28.2B and a P/E of 56.35.
• Insiders sold roughly 520,975 shares (~$112M) over the last quarter (including the CTO and CEO) while analysts maintain a consensus "Moderate Buy" rating with an average price target of $238.78.

Vanguard Group Inc. raised its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 12.9% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 12,238,508 shares of the company's stock after buying an additional 1,401,293 shares during the period. Vanguard Group Inc. owned 6.54% of Reddit worth $2,814,734,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of Reddit in the 2nd quarter valued at about $294,254,000. Amundi boosted its position in Reddit by 2,060.5% during the second quarter. Amundi now owns 1,307,231 shares of the company's stock valued at $208,294,000 after purchasing an additional 1,246,725 shares during the last quarter. State Street Corp grew its stake in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after purchasing an additional 1,178,890 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Reddit by 72.1% during the 2nd quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company's stock worth $299,044,000 after purchasing an additional 833,245 shares during the last quarter. Finally, DSM Capital Partners LLC bought a new stake in shares of Reddit during the 3rd quarter worth approximately $182,590,000.

Reddit Stock Up 6.0%

Reddit stock opened at $147.63 on Thursday. The company's 50-day moving average price is $207.07 and its two-hundred day moving average price is $214.36. The stock has a market cap of $28.20 billion, a P/E ratio of 56.35, a P/E/G ratio of 1.03 and a beta of 2.17. Reddit Inc. has a twelve month low of $79.75 and a twelve month high of $282.95.

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

Insider Transactions at Reddit

In related news, CTO Christopher Brian Slowe sold 24,000 shares of the company's stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $192.72, for a total value of $4,625,280.00. Following the transaction, the chief technology officer directly owned 175,694 shares in the company, valued at approximately $33,859,747.68. This represents a 12.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $215.19, for a total transaction of $3,873,420.00. Following the completion of the sale, the chief executive officer owned 448,576 shares of the company's stock, valued at $96,529,069.44. This trade represents a 3.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 520,975 shares of company stock worth $112,083,885. 34.25% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. The Goldman Sachs Group lowered their target price on shares of Reddit from $236.00 to $206.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Morgan Stanley set a $240.00 price objective on shares of Reddit in a research report on Friday, February 6th. Cantor Fitzgerald dropped their target price on shares of Reddit from $240.00 to $170.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Roth Mkm raised their target price on shares of Reddit from $210.00 to $215.00 and gave the company a "neutral" rating in a research note on Friday, January 30th. Finally, JPMorgan Chase & Co. reduced their price target on Reddit from $227.00 to $200.00 and set a "neutral" rating for the company in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Reddit presently has an average rating of "Moderate Buy" and a consensus price target of $238.78.

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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