Concentric Capital Strategies LP Has $5.21 Million Position in Reddit Inc. $RDDT

Key Points

• Concentric Capital Strategies LP cut its Reddit stake by 61.5% in the fourth quarter, leaving it with 22,657 shares valued at about $5.21 million.
• Reddit shares fell 5.4% to $165.98, even though the company recently posted strong earnings that beat estimates on both EPS and revenue and showed 69.1% year-over-year revenue growth.
• Analyst sentiment remains mixed but broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $230.75, while insiders have also been selling shares in recent months.

Concentric Capital Strategies LP trimmed its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 61.5% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 22,657 shares of the company's stock after selling 36,211 shares during the quarter. Concentric Capital Strategies LP's holdings in Reddit were worth $5,208,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in RDDT. Raiffeisen Bank International AG bought a new position in Reddit in the third quarter valued at about $25,000. GW&K Investment Management LLC bought a new stake in Reddit during the 3rd quarter worth about $30,000. LOM Asset Management Ltd acquired a new position in Reddit during the 4th quarter valued at about $33,000. Noble Wealth Management PBC bought a new position in shares of Reddit in the 4th quarter valued at about $34,000. Finally, Geneos Wealth Management Inc. boosted its stake in shares of Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares during the last quarter.

Reddit Trading Down 5.4%

Shares of Reddit stock opened at $165.98 on Thursday. The stock's fifty day simple moving average is $159.63 and its 200 day simple moving average is $175.98. The company has a market capitalization of $31.95 billion, a PE ratio of 47.42 and a beta of 1.91. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. The firm had revenue of $663.41 million during the quarter, compared to analysts' expectations of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company's revenue was up 69.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.13 earnings per share. Analysts predict that Reddit Inc. will post 4.83 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the company a "market perform" rating in a research report on Friday, May 1st. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $200.00 price objective on shares of Reddit in a research note on Friday, May 1st. Bank of America dropped their price objective on Reddit from $205.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday, April 2nd. Piper Sandler restated an "overweight" rating and set a $215.00 target price (up from $205.00) on shares of Reddit in a report on Friday, May 1st. Finally, Truist Financial set a $265.00 target price on Reddit in a research report on Friday, May 1st. Eighteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Reddit presently has an average rating of "Moderate Buy" and a consensus target price of $230.75.

Insiders Place Their Bets

In related news, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the sale, the chief technology officer directly owned 38,413 shares of the company's stock, valued at approximately $5,787,686.71. The trade was a 28.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the company's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company's stock, valued at approximately $172,541,252.52. The trade was a 3.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 211,334 shares of company stock worth $33,715,773. Company insiders own 28.48% of the company's stock.

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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