Capital Impact Advisors LLC Purchases Shares of 73,165 Reddit Inc. $RDDT

Key Points

• Capital Impact Advisors LLC purchased 73,165 shares of Reddit in Q3 (~$16.83M), making Reddit 3.8% of the fund and its 9th-largest holding.
• Reddit beat Q4 expectations with $1.24 EPS vs. $0.96 est. and revenue of $725.6M (vs. $665.8M est.), with revenue up 69.7% year-over-year.
• Other notable moves: CalPERS bought ~$46.4M and Bank of America added 478,095 shares (now 1.724M shares, ~$396.6M), while insiders sold 433,335 shares (~$89.1M) over three months even as a director purchased 43,800 shares.

Capital Impact Advisors LLC purchased a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) in the third quarter, according to its most recent 13F filing with the SEC. The fund purchased 73,165 shares of the company's stock, valued at approximately $16,827,000. Reddit makes up 3.8% of Capital Impact Advisors LLC's investment portfolio, making the stock its 9th largest position.

Other institutional investors have also recently made changes to their positions in the company. Capula Management Ltd purchased a new stake in shares of Reddit in the third quarter worth $2,890,000. Circle Wealth Management LLC purchased a new position in Reddit during the third quarter worth about $1,601,000. California Public Employees Retirement System bought a new position in Reddit in the 3rd quarter worth about $46,426,000. Bank of America Corp DE increased its stake in Reddit by 38.4% in the 3rd quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock worth $396,632,000 after acquiring an additional 478,095 shares during the last quarter. Finally, Bank of Nova Scotia purchased a new stake in shares of Reddit in the 3rd quarter valued at about $7,493,000.

Reddit Stock Down 0.0%

Shares of RDDT stock opened at $132.21 on Friday. The business has a 50-day moving average price of $177.60 and a two-hundred day moving average price of $204.92. Reddit Inc. has a 12-month low of $79.75 and a 12-month high of $282.95. The firm has a market cap of $25.26 billion, a P/E ratio of 50.46, a price-to-earnings-growth ratio of 0.96 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The company reported $1.24 EPS for the quarter, beating the consensus estimate of $0.96 by $0.28. The firm 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%.The company's revenue was up 69.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.36 EPS. As a group, research analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

RDDT has been the subject of a number of research analyst reports. B. Riley Financial lifted their price target on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a research report on Friday, February 6th. Roth Mkm upped their price objective on shares of Reddit from $210.00 to $215.00 and gave the stock a "neutral" rating in a research report on Friday, January 30th. Jefferies Financial Group lowered their target price on shares of Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a research note on Tuesday, March 10th. Evercore reiterated an "outperform" rating and set a $290.00 target price on shares of Reddit in a research report on Friday, February 6th. Finally, JPMorgan Chase & Co. cut their price target on shares of Reddit from $227.00 to $200.00 and set a "neutral" rating for the company in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus price target of $236.00.

Insider Buying and Selling at Reddit

In other Reddit news, insider Benjamin Seong Lee sold 55,005 shares of Reddit stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $221.21, for a total transaction of $12,167,656.05. Following the transaction, the insider directly owned 62,608 shares of the company's stock, valued at approximately $13,849,515.68. This trade represents a 46.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Sarah E. Farrell acquired 43,800 shares of the stock in a transaction dated Tuesday, February 10th. The stock was acquired at an average price of $149.52 per share, with a total value of $6,548,976.00. Following the completion of the acquisition, the director owned 43,800 shares in the company, valued at approximately $6,548,976. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders sold 433,335 shares of company stock valued at $89,139,359. 34.25% of the stock is currently 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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