DSM Capital Partners LLC Acquires New Stake in Reddit Inc. $RDDT

DSM Capital Partners LLC bought a new position in shares of Reddit Inc. (NYSE:RDDT) during the 3rd quarter, HoldingsChannel reports. The institutional investor bought 793,905 shares of the company’s stock, valued at approximately $182,590,000. Reddit comprises approximately 2.6% of DSM Capital Partners LLC’s portfolio, making the stock its 10th largest position.

Several other institutional investors also recently bought and sold shares of RDDT. CoreCap Advisors LLC lifted its position in shares of Reddit by 36.4% during the third quarter. CoreCap Advisors LLC now owns 1,139 shares of the company’s stock worth $262,000 after purchasing an additional 304 shares in the last quarter. Cigna Investments Inc. New purchased a new stake in Reddit during the 3rd quarter worth approximately $262,000. KG&L Capital Management LLC increased its stake in Reddit by 12.9% during the 3rd quarter. KG&L Capital Management LLC now owns 2,474 shares of the company’s stock worth $569,000 after buying an additional 283 shares during the period. Crown Wealth Group LLC acquired a new stake in Reddit during the 3rd quarter worth approximately $201,000. Finally, Commonwealth Equity Services LLC boosted its position in Reddit by 0.7% in the 3rd quarter. Commonwealth Equity Services LLC now owns 42,763 shares of the company’s stock valued at $9,835,000 after buying an additional 310 shares during the period.

Reddit Stock Performance

NYSE:RDDT opened at $253.07 on Wednesday. Reddit Inc. has a 1 year low of $79.75 and a 1 year high of $282.95. The stock has a market cap of $47.96 billion, a P/E ratio of 145.44, a P/E/G ratio of 1.64 and a beta of 2.17. The stock has a 50-day simple moving average of $215.64 and a 200-day simple moving average of $205.42.

Reddit (NYSE:RDDT) last issued its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.30. The business had revenue of $584.91 million for the quarter, compared to analyst estimates of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The business’s quarterly revenue was up 67.9% on a year-over-year basis. During the same quarter last year, the company earned $0.16 EPS. On average, equities research analysts predict that Reddit Inc. will post 1.12 EPS for the current year.

Insider Activity at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $230.76, for a total value of $4,153,680.00. Following the transaction, the chief executive officer directly owned 448,576 shares of the company’s stock, valued at $103,513,397.76. This trade represents a 3.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CTO Christopher Brian Slowe sold 14,000 shares of Reddit stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $233.53, for a total transaction of $3,269,420.00. Following the sale, the chief technology officer owned 171,694 shares in the company, valued at $40,095,699.82. This represents a 7.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 465,333 shares of company stock valued at $97,652,064 in the last quarter. Company insiders own 34.25% of the company’s stock.

Analysts Set New Price Targets

RDDT has been the topic of a number of recent research reports. China Renaissance initiated coverage on Reddit in a research report on Tuesday, December 9th. They set a “buy” rating and a $300.00 price objective on the stock. Robert W. Baird boosted their target price on Reddit from $177.00 to $240.00 and gave the stock a “neutral” rating in a research note on Thursday, September 25th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Reddit in a research report on Wednesday, October 1st. Citigroup boosted their price objective on Reddit from $250.00 to $265.00 and gave the stock a “buy” rating in a research report on Monday, November 3rd. Finally, JPMorgan Chase & Co. upped their target price on shares of Reddit from $190.00 to $227.00 and gave the stock a “neutral” rating in a research note on Friday, October 31st. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $230.28.

Reddit 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.