Delta Global Management LP Trims Holdings in Reddit Inc. $RDDT

Key Points

• Delta Global Management LP reduced its stake in Reddit by 55.9% in Q3, selling 17,272 shares and ending the period with 13,631 shares valued at about $3.14 million.
• Insider activity has been heavily tilted toward selling—insiders disposed of 415,335 shares worth roughly $85.17 million over the last 90 days (including sales by the CAO and CTO), and insiders own 34.25% of the stock.
• Reddit posted strong quarterly results, reporting EPS of $1.24 (beating estimates) and revenue of $725.6M, up 69.7% year-over-year, while analysts maintain a consensus "Moderate Buy" with an average price target of $236.

Delta Global Management LP lowered its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 55.9% in the third quarter, according to its most recent 13F filing with the SEC. The firm owned 13,631 shares of the company's stock after selling 17,272 shares during the period. Delta Global Management LP's holdings in Reddit were worth $3,135,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Raiffeisen Bank International AG acquired a new position in Reddit during the third quarter worth $25,000. GW&K Investment Management LLC purchased a new position in shares of Reddit during the third quarter worth $30,000. Cornerstone Planning Group LLC grew its stake in shares of Reddit by 13,500.0% in the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock valued at $31,000 after buying an additional 135 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in shares of Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after buying an additional 286 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Reddit by 8,650.0% in the 3rd quarter. GAMMA Investing LLC now owns 175 shares of the company's stock valued at $40,000 after buying an additional 173 shares during the period.

Reddit Trading Down 0.0%

Shares of NYSE:RDDT opened at $132.21 on Monday. Reddit Inc. has a 52 week low of $79.75 and a 52 week high of $282.95. The company's 50 day moving average is $177.60 and its two-hundred day moving average is $204.88. The company has a market cap of $25.26 billion, a PE ratio of 50.46, a P/E/G ratio of 0.96 and a beta of 2.41.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.28. The business had revenue of $725.61 million during the quarter, compared to analysts' expectations of $665.80 million. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company's revenue for the quarter was up 69.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.36 EPS. As a group, equities research analysts expect that Reddit Inc. will post 1.12 EPS for the current year.

Insider Buying and Selling

In other Reddit news, CAO Michelle Marie Reynolds sold 2,291 shares of Reddit stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $143.59, for a total transaction of $328,964.69. Following the completion of the sale, the chief accounting officer directly owned 17,133 shares of the company's stock, valued at $2,460,127.47. The trade was a 11.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CTO Christopher Brian Slowe sold 9,500 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $136.55, for a total value of $1,297,225.00. Following the completion of the transaction, the chief technology officer owned 183,057 shares in the company, valued at approximately $24,996,433.35. The trade was a 4.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 415,335 shares of company stock valued at $85,174,319 over the last 90 days. 34.25% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

RDDT has been the subject of a number of research analyst reports. The Goldman Sachs Group lowered their target price on Reddit from $236.00 to $206.00 and set a "neutral" rating for the company in a report on Friday, February 6th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $285.00 price target on shares of Reddit in a research note on Tuesday, January 20th. Evercore reissued an "outperform" rating and set a $290.00 price target on shares of Reddit in a research report on Friday, February 6th. UBS Group set a $265.00 price objective on shares of Reddit in a research note on Tuesday, January 13th. Finally, Morgan Stanley set a $240.00 price objective on shares of Reddit in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $236.00.

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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