Elwood Capital Partners LP Decreases Holdings in Reddit Inc. $RDDT

Key Points

• Elwood Capital Partners cut its stake in Reddit by 66.6% in Q3, selling 40,177 shares and leaving 20,146 shares valued at about $4.63M, making Reddit 2.8% of its portfolio and its 10th largest holding.
• Heavy insider selling continued: CTO Christopher Slowe sold 9,500 shares and CAO Michelle Reynolds sold 2,291, and insiders disposed of 433,335 shares (about $89.14M) last quarter despite insiders still owning 34.25% of the company.
• Strong quarterly results: Reddit beat estimates with EPS of $1.24 vs. $0.96 and revenue of $725.6M (up 69.7% YoY); the stock has a $25.26B market cap and a P/E of 50.46 but is trading below its 50- and 200-day moving averages.

Elwood Capital Partners LP lowered its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 66.6% during the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 20,146 shares of the company's stock after selling 40,177 shares during the period. Reddit makes up 2.8% of Elwood Capital Partners LP's investment portfolio, making the stock its 10th largest position. Elwood Capital Partners LP's holdings in Reddit were worth $4,633,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Raiffeisen Bank International AG bought a new position in shares of Reddit in the third quarter worth approximately $25,000. GW&K Investment Management LLC purchased a new position in Reddit in the 3rd quarter worth approximately $30,000. Cornerstone Planning Group LLC increased its holdings in shares of Reddit by 13,500.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock worth $31,000 after buying an additional 135 shares during the last quarter. GAMMA Investing LLC increased 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 worth $40,000 after buying an additional 173 shares during the last quarter. Finally, Cloud Capital Management LLC purchased a new stake in shares of Reddit during the 3rd quarter valued at $47,000.

Insider Transactions at Reddit

In related news, CTO Christopher Brian Slowe sold 9,500 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $136.55, for a total value of $1,297,225.00. Following the completion of the sale, the chief technology officer owned 183,057 shares of the company's stock, valued at $24,996,433.35. This trade represents a 4.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Michelle Marie Reynolds sold 2,291 shares of Reddit stock in a transaction on Monday, February 23rd. The shares were 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 owned 17,133 shares in the company, valued at approximately $2,460,127.47. This trade represents a 11.79% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 433,335 shares of company stock worth $89,139,359. Corporate insiders own 34.25% of the company's stock.

Reddit Trading Down 0.0%

RDDT stock opened at $132.21 on Friday. The stock has a market capitalization of $25.26 billion, a price-to-earnings ratio of 50.46, a PEG ratio of 0.96 and a beta of 2.40. The firm's 50-day moving average price is $177.60 and its two-hundred day moving average price is $204.92. Reddit Inc. has a 12-month low of $79.75 and a 12-month high of $282.95.

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, topping analysts' consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The company had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same period in the prior year, the business posted $0.36 earnings per share. Reddit's revenue for the quarter was up 69.7% on a year-over-year basis. Equities analysts predict that Reddit Inc. will post 1.12 EPS for the current year.

Analyst Ratings Changes

Several research analysts recently issued reports on RDDT shares. Robert W. Baird set a $200.00 target price on shares of Reddit in a research report on Friday, February 6th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $285.00 target price on shares of Reddit in a research note on Tuesday, January 20th. Zacks Research downgraded shares of Reddit from a "strong-buy" rating to a "hold" rating in a research note on Friday, December 26th. Piper Sandler restated an "overweight" rating and issued a $205.00 price objective (down from $290.00) on shares of Reddit in a report on Friday, February 6th. Finally, China Renaissance assumed coverage on shares of Reddit in a report on Tuesday, December 9th. They set a "buy" rating and a $300.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Reddit currently has an average rating of "Moderate Buy" and an average target price of $236.00.

About Reddit

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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