Light Street Capital Management LLC Takes Position in Reddit Inc. $RDDT

Key Points

• Light Street Capital Management acquired 182,500 Reddit shares worth approximately $31.7 million in the second quarter, making Reddit 3.5% of its portfolio and its 12th-largest holding.
• Reddit reported quarterly EPS of $1.25, beating estimates by $0.30, while revenue rose 61% year over year to $804.9 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $221.10.
• RDDT recently traded at $148.96, below its 50-day average of $169.69; meanwhile, company insiders sold more than 210,000 shares worth $36.4 million over the past 90 days.

Light Street Capital Management LLC bought a new position in Reddit Inc. (NYSE:RDDT - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 182,500 shares of the company's stock, valued at approximately $31,678,000. Reddit makes up 3.5% of Light Street Capital Management LLC's portfolio, making the stock its 12th largest holding. Light Street Capital Management LLC owned about 0.09% of Reddit as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the company. Nykredit A S purchased a new position in shares of Reddit in the 2nd quarter worth about $10,020,000. Allianz Asset Management GmbH bought a new stake in Reddit in the 2nd quarter worth approximately $1,490,000. Corient Private Wealth LP lifted its position in Reddit by 141.6% in the 2nd quarter. Corient Private Wealth LP now owns 29,914 shares of the company's stock worth $5,192,000 after buying an additional 17,531 shares during the last quarter. Amundi boosted its stake in Reddit by 21.2% in the second quarter. Amundi now owns 272,267 shares of the company's stock worth $47,260,000 after buying an additional 47,666 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Reddit during the second quarter valued at approximately $3,432,000.

Reddit Stock Performance

RDDT stock traded down $5.50 on Tuesday, reaching $148.96. The company's stock had a trading volume of 5,008,303 shares, compared to its average volume of 5,485,929. The firm has a market cap of $28.66 billion, a PE ratio of 34.64, a PEG ratio of 0.71 and a beta of 2.02. The business has a fifty day simple moving average of $169.69 and a two-hundred day simple moving average of $159.05. 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 issued its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business had revenue of $804.91 million during the quarter, compared to analyst estimates of $731.00 million. During the same period in the prior year, the business earned $0.45 EPS. The company's revenue for the quarter was up 61.0% on a year-over-year basis. As a group, research analysts anticipate that Reddit Inc. will post 5.27 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Truist Financial boosted their price objective on shares of Reddit from $265.00 to $275.00 and gave the stock a "buy" rating in a report on Friday, July 31st. KeyCorp began coverage on shares of Reddit in a report on Wednesday, July 29th. They set an "overweight" rating and a $225.00 target price on the stock. Telsey Advisory Group set a $240.00 target price on shares of Reddit in a research report on Friday, July 31st. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research note on Friday, July 10th. Finally, DA Davidson restated a "buy" rating and set a $200.00 price target on shares of Reddit in a research report on Thursday, July 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $221.10.

Insider Activity at Reddit

In other Reddit news, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the sale, the chief executive officer directly owned 373,814 shares of the company's stock, valued at approximately $64,718,417.82. The trade was a 4.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 75,000 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $178.55, for a total value of $13,391,250.00. Following the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at $187,538,028.45. This trade represents a 6.66% 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. Insiders have sold 210,102 shares of company stock worth $36,375,252 over the last ninety days. Corporate insiders own 28.48% of the company's stock.

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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