Maytus Capital Management LLC Buys Shares of 24,000 Reddit Inc. $RDDT

Key Points

• Maytus Capital Management opened a new position in Reddit, buying 24,000 shares in the fourth quarter worth about $5.5 million.
• Reddit’s latest earnings beat expectations, with EPS of $1.01 versus the $0.62 estimate and revenue up 69.1% year over year to $663.4 million.
• Several insiders have recently sold shares, including COO Jennifer L. Wong and CEO Steve Huffman, while analysts remain generally bullish with a Moderate Buy consensus and an average price target of $230.75.

Maytus Capital Management LLC bought a new stake in Reddit Inc. (NYSE:RDDT - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 24,000 shares of the company's stock, valued at approximately $5,517,000.

A number of other institutional investors also recently made changes to their positions in RDDT. Raiffeisen Bank International AG acquired a new position in shares of Reddit in the 3rd quarter valued at approximately $25,000. GW&K Investment Management LLC acquired a new position in shares of Reddit in the 3rd quarter valued at approximately $30,000. LOM Asset Management Ltd acquired a new position in shares of Reddit in the 4th quarter valued at approximately $33,000. Noble Wealth Management PBC acquired a new position in shares of Reddit in the 4th quarter valued at approximately $34,000. Finally, Geneos Wealth Management Inc. raised its position in shares of Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

Insiders Place Their Bets

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the sale, the chief operating officer directly 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $174.13, for a total value of $3,134,340.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $65,092,231.82. This represents a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 193,334 shares of company stock valued at $30,507,093 over the last three months. Company insiders own 28.48% of the company's stock.

Reddit Price Performance

Shares of NYSE RDDT opened at $175.66 on Wednesday. Reddit Inc. has a 1-year low of $119.27 and a 1-year high of $282.95. The business's fifty day moving average price is $159.09 and its two-hundred day moving average price is $176.27. The firm has a market capitalization of $33.82 billion, a PE ratio of 50.19 and a beta of 1.91.

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, topping the consensus estimate of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The firm had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same period last year, the company earned $0.13 earnings per share. The firm's revenue for the quarter was up 69.1% on a year-over-year basis. Equities research analysts expect that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. Cantor Fitzgerald upped their price target on Reddit from $170.00 to $180.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Loop Capital reissued a "buy" rating and set a $260.00 price target on shares of Reddit in a research report on Thursday, June 4th. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. Zacks Research lowered Reddit from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. Finally, Oppenheimer reissued an "outperform" rating and set a $225.00 price target on shares of Reddit in a research report on Friday, May 1st. Eighteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $230.75.

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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