Vanguard Group Inc. Raises Holdings in Reddit Inc. $RDDT

Key Points

• Vanguard increased its stake in Reddit by 8.9% in Q4 to 13,322,048 shares (7.03% ownership), worth about $3.06 billion after buying an additional 1,083,540 shares.
• Insider activity was mixed: CEO Steve Huffman sold 18,000 shares at an average $145.12 (~$2.61M) while director Sarah E. Farrell bought 43,800 shares at $149.52 (~$6.55M); insiders net sold 298,441 shares (~$44.17M) versus purchases of 61,000 (~$8.87M) in the last 90 days, and insiders own 34.25% of the company.
• Reddit beat expectations for the quarter with $1.24 EPS vs $0.96 est and revenue of $725.6M (up 69.7% YoY); the stock trades around $147.67, has a $28.2B market cap, and analysts show a "Moderate Buy" consensus with an average target of $229.79.

Vanguard Group Inc. boosted its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 8.9% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 13,322,048 shares of the company's stock after acquiring an additional 1,083,540 shares during the quarter. Vanguard Group Inc. owned 7.03% of Reddit worth $3,062,339,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently bought and sold shares of the company. Raiffeisen Bank International AG purchased a new stake in Reddit during the 3rd quarter valued at about $25,000. GW&K Investment Management LLC purchased a new stake in Reddit in the 3rd quarter worth approximately $30,000. Cornerstone Planning Group LLC lifted its holdings in Reddit by 13,500.0% in the 3rd 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 period. LOM Asset Management Ltd purchased a new stake in Reddit in the 4th quarter worth approximately $33,000. Finally, Noble Wealth Management PBC purchased a new stake in Reddit in the 4th quarter worth approximately $34,000.

Insider Buying and Selling

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $145.12, for a total transaction of $2,612,160.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at $59,672,618.40. This trade represents a 4.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Sarah E. Farrell acquired 43,800 shares of Reddit stock in a transaction that occurred on Tuesday, February 10th. The shares were bought at an average cost of $149.52 per share, with a total value of $6,548,976.00. Following the transaction, the director owned 43,800 shares in the company, valued at $6,548,976. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders purchased 61,000 shares of company stock worth $8,870,815 and sold 298,441 shares worth $44,170,999. Corporate insiders own 34.25% of the company's stock.

Reddit Stock Performance

Shares of NYSE:RDDT opened at $147.67 on Wednesday. Reddit Inc. has a 52-week low of $94.89 and a 52-week high of $282.95. The firm has a market capitalization of $28.21 billion, a P/E ratio of 56.36, a P/E/G ratio of 1.17 and a beta of 2.40. The stock has a 50 day moving average price of $144.08 and a 200-day moving average price of $184.83.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.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 prior year, the company earned $0.36 EPS. The business's revenue was up 69.7% compared to the same quarter last year. On average, equities analysts forecast that Reddit Inc. will post 4.02 EPS for the current fiscal year.

Analysts Set New Price Targets

RDDT has been the subject of several research analyst reports. Piper Sandler reiterated an "overweight" rating and issued a $205.00 price objective (down from $290.00) on shares of Reddit in a report on Friday, February 6th. Rothschild & Co Redburn set a $110.00 price objective on Reddit in a report on Monday. Oppenheimer dropped their price objective on Reddit from $300.00 to $250.00 and set an "outperform" rating for the company in a report on Friday, February 6th. The Goldman Sachs Group dropped their price objective on Reddit from $206.00 to $180.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. Finally, Citigroup initiated coverage on Reddit in a report on Tuesday, April 21st. They issued a "buy" rating for the company. One investment 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 stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $229.79.

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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