Empirical Capital Management LLC Increases Stake in Reddit Inc. $RDDT

Key Points

• Empirical Capital Management increased its Reddit stake by 1,642.2% in the second quarter, adding 147,800 shares to own 156,800 shares worth approximately $27.2 million.
• Reddit reported strong quarterly results, with EPS of $1.25 beating estimates of $0.95 and revenue of $804.9 million rising 61% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $220.90.
• RDDT opened at $153.46, down 1.7%, well below its 52-week high of $282.95. Insiders have sold 169,141 shares worth roughly $28.5 million over the past 90 days, primarily through pre-arranged trading plans.

Empirical Capital Management LLC grew its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 1,642.2% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 156,800 shares of the company's stock after buying an additional 147,800 shares during the quarter. Reddit makes up 7.4% of Empirical Capital Management LLC's portfolio, making the stock its 6th largest position. Empirical Capital Management LLC owned 0.08% of Reddit worth $27,217,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the business. Capital World Investors acquired a new position in Reddit during the 4th quarter worth about $1,293,258,000. Norges Bank acquired a new stake in Reddit in the 4th quarter valued at about $372,047,000. Invesco Ltd. increased its position in Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after acquiring an additional 1,201,237 shares in the last quarter. State Street Corp raised its stake in shares of Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock worth $305,678,000 after acquiring an additional 1,178,890 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in shares of Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock worth $3,062,339,000 after acquiring an additional 1,083,540 shares during the last quarter.

Analysts Set New Price Targets

RDDT has been the topic of a number of research reports. Telsey Advisory Group set a $240.00 target price on shares of Reddit in a research report on Friday, July 31st. UBS Group reissued a "buy" rating on shares of Reddit in a report on Friday, July 31st. Cantor Fitzgerald dropped their price objective on shares of Reddit from $200.00 to $170.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. Guggenheim reaffirmed a "buy" rating on shares of Reddit in a report on Friday, July 31st. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $180.00 price objective on shares of Reddit in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat, Reddit presently has an average rating of "Moderate Buy" and a consensus target price of $220.90.

Reddit Trading Down 1.7%

Reddit stock opened at $153.46 on Thursday. The company has a market cap of $29.53 billion, a PE ratio of 35.69, a PEG ratio of 0.52 and a beta of 2.03. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The company's 50-day moving average is $175.72 and its two-hundred day moving average is $160.12.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. The company had revenue of $804.91 million during the quarter, compared to analysts' expectations of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. Reddit's revenue was up 61.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.45 EPS. Research analysts forecast that Reddit Inc. will post 5.22 EPS for the current year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the transaction, the chief operating officer directly owned 1,088,451 shares of the company's stock, valued at approximately $172,541,252.52. This trade represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction on Monday, June 15th. The stock was sold at an average price of $178.26, for a total transaction of $3,208,680.00. Following the sale, the chief executive officer directly owned 373,814 shares of the company's stock, valued at $66,636,083.64. This represents a 4.59% decrease in their position. 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. Over the last ninety days, insiders have sold 169,141 shares of company stock valued at $28,464,485. 28.48% of the stock is currently owned by insiders.

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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