October Effect Ltd Purchases Shares of 28,039 Reddit Inc. $RDDT

October Effect Ltd purchased a new stake in Reddit Inc. (NYSE:RDDT) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 28,039 shares of the company’s stock, valued at approximately $4,867,000. Reddit comprises 4.6% of October Effect Ltd’s investment portfolio, making the stock its 6th biggest holding.

Other institutional investors have also made changes to their positions in the company. Sunbelt Securities Inc. lifted its position in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares during the last quarter. Ascentis Independent Advisors acquired a new stake in Reddit in the 1st quarter valued at approximately $30,000. Beacon Investment Advisory Services Inc. acquired a new stake in Reddit in the 2nd quarter valued at approximately $35,000. Geneos Wealth Management Inc. increased its position 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 during the period. Finally, V Square Quantitative Management LLC bought a new position in Reddit in the 1st quarter worth approximately $43,000.

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at $172,541,252.52. This represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total value of $3,116,340.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $64,718,417.82. The trade was a 4.59% 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. Insiders sold 151,141 shares of company stock valued at $25,635,785 over the last quarter. Corporate insiders own 28.48% of the company’s stock.

Reddit Price Performance

Shares of Reddit stock opened at $158.10 on Friday. Reddit Inc. has a 52-week low of $119.27 and a 52-week high of $282.95. The firm has a market capitalization of $30.42 billion, a PE ratio of 36.77, a price-to-earnings-growth ratio of 0.52 and a beta of 2.03. The company’s fifty day moving average price is $175.21 and its two-hundred day moving average price is $159.70.

Reddit (NYSE:RDDT) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. During the same period last year, the firm earned $0.45 EPS. The firm’s revenue for the quarter was up 61.0% compared to the same quarter last year. Analysts predict that Reddit Inc. will post 5.22 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. DA Davidson reissued a “buy” rating and issued a $200.00 price objective on shares of Reddit in a research report on Thursday, July 23rd. Truist Financial boosted their target price on shares of Reddit from $265.00 to $275.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Wedbush cut their target price on shares of Reddit from $250.00 to $221.00 and set an “outperform” rating for the company in a research note on Friday, July 31st. The Goldman Sachs Group reissued a “neutral” rating and issued a $200.00 price target on shares of Reddit in a report on Friday, May 1st. Finally, Roth Capital restated a “neutral” rating and issued a $145.00 price target on shares of Reddit in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $220.90.

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.