Caisse DE Depot ET Placement DU Quebec Invests $6.35 Million in Reddit Inc. $RDDT

Key Points

• Caisse DE Depot ET Placement DU Quebec made a new $6.35 million investment in Reddit Inc., acquiring 60,500 shares valued at approximately $6.35 million in the first quarter.
• Reddit reported strong earnings, with $0.45 earnings per share for the quarter, exceeding the consensus estimate of $0.20, along with a revenue of $499.63 million.
• Several institutional investors have increased their stakes in Reddit, with notable increases from Signaturefd LLC, CWM LLC, and others, indicating growing confidence in the company's prospects.

Caisse DE Depot ET Placement DU Quebec purchased a new position in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 60,500 shares of the company's stock, valued at approximately $6,346,000.

A number of other hedge funds have also made changes to their positions in the stock. CWM LLC lifted its position in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after purchasing an additional 128 shares during the period. Fourth Dimension Wealth LLC bought a new stake in shares of Reddit in the 4th quarter worth $49,000. Chelsea Counsel Co. acquired a new stake in shares of Reddit in the fourth quarter valued at $49,000. Stone House Investment Management LLC bought a new position in Reddit during the first quarter valued at about $31,000. Finally, Quarry LP acquired a new position in Reddit during the fourth quarter worth about $59,000.

Insiders Place Their Bets

In other Reddit news, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction on Friday, June 13th. The shares were sold at an average price of $117.64, for a total value of $3,529,200.00. Following the completion of the sale, the chief financial officer directly owned 333,806 shares of the company's stock, valued at $39,268,937.84. This represents a 8.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Jennifer L. Wong sold 40,967 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.38, for a total transaction of $9,028,307.46. Following the completion of the sale, the chief operating officer owned 120,033 shares in the company, valued at $26,452,872.54. This represents a 25.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 468,777 shares of company stock valued at $78,225,996. Corporate insiders own 34.25% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the stock. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a report on Saturday. Loop Capital cut their target price on shares of Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, June 12th. Citigroup lifted their price target on shares of Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research report on Tuesday, June 24th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $210.00 price target on shares of Reddit in a report on Friday, August 22nd. Finally, JMP Securities lifted their target price on Reddit from $180.00 to $225.00 and gave the stock a "market outperform" rating in a report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $175.38.

Reddit Trading Down 0.1%

RDDT stock traded down $0.26 during mid-day trading on Friday, hitting $225.28. The stock had a trading volume of 3,918,539 shares, compared to its average volume of 7,040,227. The stock has a market capitalization of $42.16 billion, a price-to-earnings ratio of 204.80, a PEG ratio of 3.57 and a beta of 2.38. The company has a fifty day moving average of $178.21 and a 200 day moving average of $141.21. Reddit Inc. has a 1-year low of $55.25 and a 1-year high of $253.14.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.25. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The company had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. During the same quarter in the prior year, the company posted ($0.06) EPS. The firm's revenue was up 77.9% on a year-over-year basis. Reddit has set its Q3 2025 guidance at EPS. As a group, sell-side analysts expect that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.