28,039 Shares in Reddit Inc. $RDDT Acquired by October Effect Ltd

Key Points

• October Effect Ltd acquired 28,039 Reddit shares during the second quarter, valued at approximately $4.87 million. Reddit now represents about 4.6% of the fund’s portfolio and is its sixth-largest position.
• Reddit reported quarterly earnings of $1.25 per share, beating estimates of $0.95, while revenue rose 61% year over year to $804.91 million. Analysts currently assign the stock a “Moderate Buy” consensus rating with an average price target of $220.90.
• Insiders sold 151,141 shares worth roughly $25.6 million in the latest quarter, including sales by CEO Steve Huffman and CAO Michelle Reynolds under pre-arranged trading plans.

October Effect Ltd acquired a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 28,039 shares of the company's stock, valued at approximately $4,867,000. Reddit makes up about 4.6% of October Effect Ltd's investment portfolio, making the stock its 6th largest position.

Several other large investors have also recently added to or reduced their stakes in RDDT. Sunbelt Securities Inc. boosted its stake in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after buying an additional 91 shares during the period. Ascentis Independent Advisors acquired a new position in shares of Reddit in the first quarter worth $30,000. Beacon Investment Advisory Services Inc. acquired a new position in shares of Reddit in the second quarter worth $35,000. Geneos Wealth Management Inc. raised its holdings in shares of Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares in the last quarter. Finally, V Square Quantitative Management LLC purchased a new stake in shares of Reddit during the first quarter worth $43,000.

Reddit Trading Up 3.0%

Shares of NYSE:RDDT opened at $158.10 on Friday. The stock has a market capitalization of $30.42 billion, a PE ratio of 36.77, a P/E/G ratio of 0.52 and a beta of 2.03. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The firm has a fifty day moving average price of $175.21 and a 200 day moving average price of $159.70.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The company had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. During the same period last year, the company earned $0.45 earnings per share. The business's revenue was up 61.0% compared to the same quarter last year. On average, sell-side analysts forecast that Reddit Inc. will post 5.22 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of recent research reports. Wall Street Zen downgraded Reddit from a "buy" rating to a "hold" rating in a research note on Sunday, August 9th. Jefferies Financial Group set a $250.00 price target on Reddit in a research note on Friday, July 10th. JPMorgan Chase & Co. reduced their price target on Reddit from $200.00 to $185.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Roth Capital reissued a "neutral" rating and issued a $145.00 price target on shares of Reddit in a research note on Monday, August 3rd. Finally, Citigroup restated a "market outperform" rating on shares of Reddit in a report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, Reddit presently has an average rating of "Moderate Buy" and an average price target of $220.90.

Insider Activity

In related news, CAO Michelle Marie Reynolds sold 808 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the sale, the chief accounting officer directly owned 15,060 shares in the company, valued at approximately $3,012,000. The trade was a 5.09% decrease in their position. The transaction was disclosed in a document filed 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, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The stock was 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 of the company's stock, valued at $64,718,417.82. The trade was a 4.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 151,141 shares of company stock valued at $25,635,785. Insiders own 28.48% of the company's stock.

Reddit 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.

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