Capital International Sarl Takes Position in Reddit Inc. $RDDT

Capital International Sarl purchased a new stake in shares of Reddit Inc. (NYSE:RDDT) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 46,337 shares of the company’s stock, valued at approximately $10,651,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in shares of Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares in the last quarter. State Street Corp lifted its holdings in shares of Reddit by 22.3% during the third quarter. State Street Corp now owns 2,481,931 shares of the company’s stock valued at $570,819,000 after purchasing an additional 451,792 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock valued at $546,789,000 after purchasing an additional 106,821 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Reddit by 38.4% during the third quarter. Bank of America Corp DE now owns 1,724,560 shares of the company’s stock valued at $396,632,000 after purchasing an additional 478,095 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Reddit during the fourth quarter valued at $372,047,000.

Insider Activity at Reddit

In related news, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction that occurred on 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. This represents a 28.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 stock in a transaction that occurred on 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 transaction, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at approximately $175,752,182.97. The trade was 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 three months, insiders sold 259,999 shares of company stock valued at $39,812,508. Insiders own 28.48% of the company’s stock.

Reddit Trading Down 5.7%

Shares of Reddit stock opened at $173.37 on Friday. The stock has a 50 day moving average of $153.12 and a 200 day moving average of $177.36. Reddit Inc. has a 12 month low of $110.85 and a 12 month high of $282.95. The firm has a market cap of $33.38 billion, a PE ratio of 49.53 and a beta of 1.91.

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

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RDDT. Citigroup reaffirmed a “market outperform” rating on shares of Reddit in a report on Tuesday, May 26th. Jefferies Financial Group lowered their price target on Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a report on Tuesday, March 10th. The Goldman Sachs Group reissued a “neutral” rating and issued a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Finally, Bank of America lowered their target price on Reddit from $205.00 to $175.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. Eighteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $230.75.

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.