Light Street Capital Management LLC Invests $31.68 Million in Reddit Inc. $RDDT

Light Street Capital Management LLC purchased a new position in Reddit Inc. (NYSE:RDDT) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 182,500 shares of the company’s stock, valued at approximately $31,678,000. Reddit makes up 3.5% of Light Street Capital Management LLC’s portfolio, making the stock its 12th biggest holding.

Several other hedge funds have also bought and sold shares of the business. California State Teachers Retirement System increased its stake in shares of Reddit by 19,702.8% during the second quarter. California State Teachers Retirement System now owns 30,076,727 shares of the company’s stock valued at $5,220,718,000 after purchasing an additional 29,924,846 shares in the last quarter. Capital World Investors purchased a new stake in shares of Reddit in the 4th quarter worth approximately $1,293,258,000. Norges Bank purchased a new stake in shares of Reddit in the 4th quarter worth approximately $372,047,000. Invesco Ltd. increased its position in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after buying an additional 1,201,237 shares in the last quarter. Finally, State Street Corp increased its position in Reddit by 138.5% during the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company’s stock valued at $305,678,000 after buying an additional 1,178,890 shares in the last quarter.

Insider Activity at Reddit

In related news, CEO Steve Huffman sold 18,000 shares of the stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at $64,718,417.82. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director owned 27,087 shares in the company, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 210,102 shares of company stock valued at $36,375,252 over the last ninety days. Company insiders own 28.48% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on RDDT shares. KeyCorp began coverage on Reddit in a report on Wednesday, July 29th. They issued an “overweight” rating and a $225.00 target price on the stock. Loop Capital restated a “buy” rating and set a $260.00 price target on shares of Reddit in a report on Thursday, June 4th. Needham & Company LLC reaffirmed a “buy” rating and issued a $300.00 price target on shares of Reddit in a research report on Wednesday, June 24th. Evercore reiterated an “outperform” rating and issued a $265.00 price target on shares of Reddit in a research note on Friday, July 31st. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Reddit from $200.00 to $185.00 and set a “neutral” rating for the company in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, Reddit currently has an average rating of “Moderate Buy” and an average price target of $221.10.

Reddit Price Performance

Shares of Reddit stock traded down $5.50 during trading on Tuesday, hitting $148.96. 5,008,303 shares of the company’s stock traded hands, compared to its average volume of 5,485,929. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The business has a 50-day simple moving average of $169.69 and a 200-day simple moving average of $159.05. The stock has a market capitalization of $28.66 billion, a P/E ratio of 34.64, a PEG ratio of 0.71 and a beta of 2.02.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.30. The business had revenue of $804.91 million for the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.45 EPS. On average, equities analysts predict that Reddit Inc. will post 5.27 earnings per share for the current fiscal 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.