Wellington Management Group LLP Buys 280,030 Shares of Reddit Inc. $RDDT

Key Points

• Wellington Management increased its Reddit stake by 21.8% in the second quarter, buying 280,030 shares to own 1.56 million shares worth approximately $271.6 million. Other institutional investors, including Norges Bank, also increased or initiated positions.
• Reddit insiders sold 192,102 shares worth approximately $33.7 million over the last quarter. CEO Steve Huffman and COO Jennifer Wong made sales under pre-arranged Rule 10b5-1 trading plans.
• Reddit reported quarterly earnings of $1.25 per share and revenue of $804.9 million, exceeding analyst estimates, with revenue up 61% year over year. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $221.10, while the stock recently traded near $152.63.

Wellington Management Group LLP boosted its position in Reddit Inc. (NYSE:RDDT - Free Report) by 21.8% during the second quarter, according to its most recent 13F filing with the SEC. The firm owned 1,564,535 shares of the company's stock after acquiring an additional 280,030 shares during the period. Wellington Management Group LLP owned 0.81% of Reddit worth $271,572,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in RDDT. Truist Financial Corp lifted its holdings in shares of Reddit by 67.7% during the 4th quarter. Truist Financial Corp now owns 15,659 shares of the company's stock worth $3,600,000 after acquiring an additional 6,321 shares during the last quarter. Swiss Life Asset Management Ltd lifted its holdings in shares of Reddit by 63.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company's stock worth $7,357,000 after acquiring an additional 12,398 shares during the last quarter. Handelsbanken Fonder AB boosted its stake in shares of Reddit by 22.9% in the 4th quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company's stock valued at $8,505,000 after purchasing an additional 6,900 shares in the last quarter. Berkshire Capital Holdings Inc. boosted its stake in shares of Reddit by 326,400.0% in the 4th quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company's stock valued at $7,505,000 after purchasing an additional 32,640 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Reddit during the 4th quarter valued at $372,047,000.

Insiders Place Their Bets

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00. Following the completion of the sale, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 75,000 shares of Reddit stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $178.55, for a total value of $13,391,250.00. Following the completion of the sale, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 192,102 shares of company stock worth $33,710,892 in the last quarter. 28.48% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms have weighed in on RDDT. DA Davidson reissued a "buy" rating and issued a $200.00 price target on shares of Reddit in a research note on Thursday, July 23rd. Wells Fargo & Company reduced their price objective on Reddit from $187.00 to $142.00 and set an "equal weight" rating on the stock in a research note on Friday, July 31st. Citigroup reiterated a "market outperform" rating on shares of Reddit in a report on Monday, August 24th. Zacks Research lowered Reddit from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 25th. Finally, Robert W. Baird set a $185.00 target price on Reddit in a report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $221.10.

Reddit Stock Down 0.2%

Shares of Reddit stock opened at $152.63 on Monday. The firm has a market cap of $29.37 billion, a PE ratio of 35.50, a price-to-earnings-growth ratio of 0.51 and a beta of 2.04. Reddit Inc. has a 12-month low of $119.27 and a 12-month high of $282.95. The company's fifty day simple moving average is $171.76 and its two-hundred day simple moving average is $158.51.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.95 by $0.30. The firm had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company's quarterly revenue was up 61.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.45 earnings per share. As a group, sell-side analysts expect that Reddit Inc. will post 5.27 earnings per share for the current fiscal 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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