Kinetic Partners Management LP Buys Shares of 209,100 Reddit Inc. $RDDT

Key Points

• Kinetic Partners Management LP bought 209,100 shares of Reddit (NYSE:RDDT) in Q3 valued at about $48.09 million, making the holding roughly 2.3% of its portfolio and Reddit its 19th-largest position.
• Significant insider activity: COO Jennifer L. Wong sold 39,167 shares for about $9.18 million (a 3.2% reduction in her stake) while Director Sarah E. Farrell bought 43,800 shares for ~$6.55 million, and insiders have sold a total of 360,330 shares (~$73.0 million) in the past three months.
• Reddit posted a strong quarter — $1.24 EPS vs. $0.96 expected and $725.6M revenue (up 69.7% year-over-year) — and the stock has a consensus analyst rating of “Moderate Buy” with an average target of $242.19.

Kinetic Partners Management LP purchased a new position in shares of Reddit Inc. (NYSE:RDDT - Free Report) in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 209,100 shares of the company's stock, valued at approximately $48,091,000. Reddit comprises about 2.3% of Kinetic Partners Management LP's portfolio, making the stock its 19th biggest position. Kinetic Partners Management LP owned 0.11% of Reddit at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in RDDT. Laird Norton Wetherby Wealth Management LLC bought a new stake in shares of Reddit in the third quarter worth $266,000. Lighthouse Investment Partners LLC acquired a new position in Reddit during the third quarter worth $2,381,000. Jain Global LLC bought a new position in Reddit in the third quarter valued at $366,000. HighVista Strategies LLC bought a new position in Reddit in the third quarter valued at $1,449,000. Finally, Gotham Asset Management LLC acquired a new stake in Reddit in the 3rd quarter valued at $23,856,000.

Insider Buying and Selling at Reddit

In other news, COO Jennifer L. Wong sold 39,167 shares of the firm's stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $234.37, for a total value of $9,179,569.79. Following the completion of the sale, the chief operating officer directly owned 1,184,528 shares of the company's stock, valued at $277,617,827.36. This trade represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Sarah E. Farrell bought 43,800 shares of Reddit stock in a transaction dated Tuesday, February 10th. The shares were acquired at an average price of $149.52 per share, with a total value of $6,548,976.00. Following the completion of the purchase, the director directly owned 43,800 shares in the company, valued at $6,548,976. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 360,330 shares of company stock valued at $73,006,663 in the last three months. Corporate insiders own 34.25% of the company's stock.

Analysts Set New Price Targets

Several brokerages have commented on RDDT. Morgan Stanley set a $240.00 price target on shares of Reddit in a research report on Friday, February 6th. JPMorgan Chase & Co. lowered their target price on Reddit from $227.00 to $200.00 and set a "neutral" rating on the stock in a research report on Friday, February 6th. Zacks Research lowered Reddit from a "strong-buy" rating to a "hold" rating in a report on Friday, December 26th. Truist Financial upped their target price on Reddit from $270.00 to $275.00 and gave the stock a "buy" rating in a report on Friday, February 6th. Finally, Jefferies Financial Group decreased their price target on Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a research note on Tuesday, March 10th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $242.19.

Reddit Price Performance

Shares of RDDT opened at $139.91 on Tuesday. The firm has a 50-day moving average of $175.52 and a 200-day moving average of $204.27. Reddit Inc. has a one year low of $79.75 and a one year high of $282.95. The company has a market cap of $26.73 billion, a PE ratio of 53.40, a price-to-earnings-growth ratio of 0.96 and a beta of 2.41.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.28. The company had revenue of $725.61 million for 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%. Reddit's quarterly revenue was up 69.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.36 EPS. Analysts expect that Reddit Inc. will post 1.12 earnings per share for the current year.

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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