Los Angeles Capital Management LLC Buys 89,318 Shares of Reddit Inc. $RDDT

Key Points

• Los Angeles Capital Management increased its Reddit stake by 995.9% in the fourth quarter, buying 89,318 additional shares and bringing its total holdings to 98,287 shares valued at about $22.6 million.
• Reddit reported strong quarterly results, posting $1.01 in EPS versus the $0.62 estimate and revenue of $663.4 million, up 69.1% from a year earlier.
• Despite the growth, insider selling continued, including share sales by COO Jennifer L. Wong and CEO Steve Huffman; analysts remain cautiously positive with a consensus Moderate Buy rating and a $230.75 price target.

Los Angeles Capital Management LLC boosted its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 995.9% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 98,287 shares of the company's stock after acquiring an additional 89,318 shares during the period. Los Angeles Capital Management LLC owned 0.05% of Reddit worth $22,593,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in Reddit by 8.9% during the 4th 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 period. State Street Corp increased its stake in Reddit by 22.3% during the 3rd quarter. State Street Corp now owns 2,481,931 shares of the company's stock worth $570,819,000 after acquiring an additional 451,792 shares during the period. Geode Capital Management LLC increased its stake in Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock worth $546,789,000 after acquiring an additional 106,821 shares during the period. Bank of America Corp DE increased its stake in Reddit by 38.4% during the 3rd quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock worth $396,632,000 after acquiring an additional 478,095 shares during the period. Finally, Norges Bank bought a new position in Reddit during the 4th quarter worth $372,047,000.

Reddit Stock Performance

Shares of RDDT stock opened at $173.37 on Monday. The stock's fifty day moving average price is $153.12 and its two-hundred day moving average price is $177.29. The company has a market cap of $33.37 billion, a PE ratio of 49.53 and a beta of 1.91. Reddit Inc. has a fifty-two week low of $110.85 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. The firm had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company's revenue was up 69.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.13 EPS. On average, equities analysts predict that Reddit Inc. will post 4.83 EPS for the current fiscal year.

Insider Activity at Reddit

In related news, COO Jennifer L. Wong sold 39,167 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the sale, the chief operating officer owned 1,088,451 shares of the company's stock, valued at $172,541,252.52. This trade represents a 3.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $174.13, for a total value of $3,134,340.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $65,092,231.82. This trade represents a 4.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 250,499 shares of company stock valued at $38,515,283 in the last 90 days. 28.48% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research firms have commented on RDDT. Citizens Jmp lowered their price objective on Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a research note on Friday, May 1st. Zacks Research lowered Reddit from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, June 3rd. Needham & Company LLC restated a "buy" rating and set a $300.00 price objective on shares of Reddit in a research note on Friday, May 1st. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Reddit in a report on Tuesday, May 26th. Eighteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $230.75.

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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