Capital World Investors Takes Position in Reddit Inc. $RDDT

Capital World Investors bought a new stake in shares of Reddit Inc. (NYSE:RDDT) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 5,626,017 shares of the company’s stock, valued at approximately $1,293,258,000. Capital World Investors owned about 2.97% of Reddit at the end of the most recent quarter.

Several other institutional investors also recently made changes to their positions in RDDT. Raiffeisen Bank International AG bought a new position in Reddit in the 3rd quarter worth approximately $25,000. GW&K Investment Management LLC bought a new position in Reddit in the 3rd quarter worth approximately $30,000. LOM Asset Management Ltd bought a new position in Reddit in the 4th quarter worth approximately $33,000. Noble Wealth Management PBC bought a new position in Reddit in the 4th quarter worth approximately $34,000. Finally, Geneos Wealth Management Inc. grew its holdings in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after buying an additional 286 shares in the last quarter.

Reddit Stock Down 0.0%

Shares of NYSE:RDDT opened at $173.37 on Monday. The company’s fifty day moving average is $153.12 and its two-hundred day moving average is $177.29. Reddit Inc. has a 12-month low of $110.85 and a 12-month high of $282.95. The company has a market cap of $33.37 billion, a P/E ratio of 49.53 and a beta of 1.91.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. During the same period in the previous year, the business earned $0.13 EPS. The company’s revenue was up 69.1% on a year-over-year basis. Equities research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $132.77, for a total value of $2,389,860.00. Following the completion of the sale, the chief executive officer directly owned 411,195 shares in the company, valued at approximately $54,594,360.15. This represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the sale, the chief operating officer 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 250,499 shares of company stock valued at $38,515,283. 28.48% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Raymond James Financial set a $180.00 price objective on Reddit and gave the stock a “market perform” rating in a report on Friday, May 1st. Oppenheimer reissued an “outperform” rating and issued a $225.00 price objective on shares of Reddit in a report on Friday, May 1st. DA Davidson reissued a “buy” rating and issued a $200.00 price objective on shares of Reddit in a report on Friday, May 1st. Cantor Fitzgerald increased their price objective on Reddit from $170.00 to $180.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Finally, Bank of America cut their target price on Reddit from $205.00 to $175.00 and set a “neutral” rating for the company in a research report on Thursday, April 2nd. Eighteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $230.75.

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.