Calamos Advisors LLC Acquires Shares of 10,000 Reddit Inc. $RDDT

Key Points

• Calamos Advisors LLC opened a new position in Reddit in Q4 by purchasing 10,000 shares valued at about $2.299 million, joining other institutional buyers that adjusted their stakes.
• Reddit beat expectations for the quarter with EPS of $1.24 vs $0.96 consensus and revenue of $725.6M (up 69.7% year-over-year); the company has a market cap near $30.65B and a 52-week range of $94.89–$282.95.
• Insiders have been net sellers recently (COO and CTO sold sizable stakes; insiders sold ~298,441 shares vs bought 61,000 in the last 90 days), while analysts assign a "Moderate Buy" consensus target of $229.79 with price targets ranging roughly $149–$300.

Calamos Advisors LLC purchased a new position in shares of Reddit Inc. (NYSE:RDDT - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 10,000 shares of the company's stock, valued at approximately $2,299,000.

Several other large investors have also modified their holdings of the stock. WT Asset Management Ltd raised its stake in shares of Reddit by 77.3% during the fourth quarter. WT Asset Management Ltd now owns 716,900 shares of the company's stock worth $164,794,000 after purchasing an additional 312,650 shares during the last quarter. China Universal Asset Management Co. Ltd. purchased a new stake in shares of Reddit during the fourth quarter worth approximately $575,000. Peregrine Capital Management LLC purchased a new stake in shares of Reddit during the fourth quarter worth approximately $34,476,000. HB Wealth Management LLC raised its stake in shares of Reddit by 31.9% during the fourth quarter. HB Wealth Management LLC now owns 1,236 shares of the company's stock worth $284,000 after purchasing an additional 299 shares during the last quarter. Finally, Fishman Jay A Ltd. MI raised its stake in shares of Reddit by 0.4% during the fourth quarter. Fishman Jay A Ltd. MI now owns 122,576 shares of the company's stock worth $28,177,000 after purchasing an additional 545 shares during the last quarter.

Reddit Stock Performance

Reddit stock opened at $160.43 on Tuesday. The firm has a market capitalization of $30.65 billion, a price-to-earnings ratio of 61.23, a price-to-earnings-growth ratio of 1.13 and a beta of 2.40. Reddit Inc. has a fifty-two week low of $94.89 and a fifty-two week high of $282.95. The stock's fifty day moving average is $143.91 and its two-hundred day moving average is $185.19.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.28. The company had revenue of $725.61 million for the quarter, compared to analyst estimates of $665.80 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.Reddit's revenue was up 69.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.36 earnings per share. As a group, sell-side analysts forecast that Reddit Inc. will post 4.02 EPS for the current fiscal year.

Wall Street Analyst Weigh In

RDDT has been the subject of several analyst reports. Wells Fargo & Company initiated coverage on Reddit in a research note on Tuesday, April 7th. They set an "equal weight" rating and a $149.00 price target for the company. Robert W. Baird set a $200.00 price target on Reddit in a research note on Friday, February 6th. Argus set a $300.00 price target on Reddit in a research note on Friday, January 9th. Wall Street Zen cut Reddit from a "buy" rating to a "hold" rating in a research note on Wednesday, April 8th. Finally, B. Riley Financial upped their price target on Reddit from $245.00 to $250.00 and gave the stock a "buy" rating in a research note on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus target price of $229.79.

Insider Buying and Selling

In other news, COO Jennifer L. Wong sold 39,167 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief operating officer 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 transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The shares were 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 of the company's stock, valued at approximately $5,787,686.71. This represents a 28.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have bought 61,000 shares of company stock worth $8,870,815 and have sold 298,441 shares worth $44,170,999. 34.25% of the stock is owned by corporate insiders.

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.

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