Capital International Ltd. CA Makes New Investment in Reddit Inc. $RDDT

Capital International Ltd. CA purchased a new position in Reddit Inc. (NYSE:RDDT) in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 26,929 shares of the company’s stock, valued at approximately $6,190,000.

Other hedge funds have also added to or reduced their stakes in the company. Raiffeisen Bank International AG bought a new stake in Reddit in the third quarter worth $25,000. GW&K Investment Management LLC bought a new stake in Reddit in the third quarter worth $30,000. LOM Asset Management Ltd bought a new stake in Reddit in the fourth quarter worth $33,000. Noble Wealth Management PBC bought a new stake in Reddit in the fourth quarter worth $34,000. Finally, Sound Income Strategies LLC bought a new stake in Reddit in the fourth quarter worth $47,000.

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $161.47, for a total value of $6,324,295.49. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at $175,752,182.97. This represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the completion of the transaction, the chief technology officer directly owned 38,413 shares of the company’s stock, valued at approximately $5,787,686.71. The trade was a 28.75% 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 sold a total of 259,999 shares of company stock valued at $39,812,508 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RDDT. Truist Financial set a $265.00 price target on shares of Reddit in a research note on Friday, May 1st. Wells Fargo & Company upped their price objective 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. Loop Capital reaffirmed a “buy” rating and set a $260.00 price objective on shares of Reddit in a research note on Thursday. Cantor Fitzgerald upped their price objective on shares of Reddit from $170.00 to $180.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Finally, DA Davidson reaffirmed a “buy” rating and set a $200.00 price objective on shares of Reddit in a research note on Friday, May 1st. Eighteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $230.75.

Reddit Trading Down 5.7%

Shares of NYSE:RDDT opened at $173.37 on Friday. The company has a market cap of $33.38 billion, a price-to-earnings ratio of 49.53 and a beta of 1.91. The company has a 50-day moving average price of $153.12 and a 200-day moving average price of $177.36. Reddit Inc. has a 12 month low of $110.85 and a 12 month high of $282.95.

Reddit (NYSE:RDDT) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.62 by $0.39. The firm had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company’s quarterly revenue was up 69.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.13 earnings per share. As a group, research analysts forecast that Reddit Inc. will post 4.83 EPS for the current fiscal year.

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.