Capital World Investors Buys New Shares in Reddit Inc. $RDDT

Capital World Investors bought a new stake in Reddit Inc. (NYSE:RDDT) in the 4th quarter, HoldingsChannel reports. The institutional investor bought 5,626,017 shares of the company’s stock, valued at approximately $1,293,258,000.

Several other hedge funds have also made changes to their positions in RDDT. Vanguard Group Inc. lifted its stake in shares of Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock valued at $2,814,734,000 after buying an additional 1,401,293 shares in the last quarter. Truist Financial Corp lifted its stake in shares of Reddit by 67.7% in the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after buying an additional 6,321 shares in the last quarter. Swiss Life Asset Management Ltd lifted its stake in shares of Reddit by 63.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after buying an additional 12,398 shares in the last quarter. WT Asset Management Ltd bought a new position in shares of Reddit in the third quarter valued at $92,973,000. Finally, Calamos Advisors LLC bought a new position in shares of Reddit in the fourth quarter valued at $2,299,000.

Wall Street Analysts Forecast Growth

RDDT has been the subject of several analyst reports. Zacks Research downgraded shares of Reddit from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 3rd. Bank of America decreased their price objective on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating for the company in a report on Thursday, April 2nd. Wells Fargo & Company raised their price objective on shares of Reddit from $149.00 to $176.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. Loop Capital restated a “buy” rating and set a $260.00 price objective on shares of Reddit in a report on Thursday. Finally, DA Davidson restated a “buy” rating and set a $200.00 price objective on shares of Reddit in a report 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. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $230.75.

Insiders Place Their Bets

In related news, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction 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 $175,752,182.97. The trade was a 3.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 Reddit stock in a transaction 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 in the company, valued at approximately $5,787,686.71. The trade was a 28.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 currently owned by corporate insiders.

Reddit Price Performance

Shares of Reddit stock opened at $173.37 on Monday. Reddit Inc. has a 1 year low of $110.85 and a 1 year high of $282.95. The firm has a market cap of $33.37 billion, a PE ratio of 49.53 and a beta of 1.91. The company has a 50 day simple moving average of $153.12 and a two-hundred day simple moving average of $177.29.

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 business had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same period in the previous year, the business posted $0.13 earnings per share. Reddit’s revenue for the quarter was up 69.1% on a year-over-year basis. As a group, research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current 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.