Munro Partners Purchases 5,550 Shares of Reddit Inc. $RDDT

Key Points

• Munro Partners boosted its Reddit stake by 15.4% in the fourth quarter, adding 5,550 shares to bring its total holding to 41,550 shares worth about $9.55 million.
• Reddit insiders have been selling shares: CTO Christopher Brian Slowe and CEO Steve Huffman both sold stock in pre-arranged Rule 10b5-1 plans, and insiders sold 232,499 shares worth about $36.1 million over the last quarter.
• Analysts remain generally positive on RDDT, with a Moderate Buy consensus and average price target of $230.75; the company also posted strong quarterly results, including EPS of $1.01 and revenue growth of 69.1% year over year.

Munro Partners increased its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 15.4% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 41,550 shares of the company's stock after acquiring an additional 5,550 shares during the period. Munro Partners' holdings in Reddit were worth $9,551,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Raiffeisen Bank International AG bought a new stake in Reddit during the 3rd quarter worth $25,000. GW&K Investment Management LLC bought a new stake in shares of Reddit in the 3rd quarter valued at about $30,000. LOM Asset Management Ltd bought a new stake in shares of Reddit in the 4th quarter valued at about $33,000. Noble Wealth Management PBC bought a new stake in shares of Reddit in the 4th quarter valued at about $34,000. Finally, Sound Income Strategies LLC bought a new stake in shares of Reddit in the 4th quarter valued at about $47,000.

Insiders Place Their Bets

In other Reddit news, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total value of $2,335,385.00. Following the transaction, the chief technology officer owned 38,413 shares in the company, valued at approximately $5,787,686.71. This represents a 28.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 stock in a transaction that occurred 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 of the company's stock, valued at $65,092,231.82. The trade was a 4.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 232,499 shares of company stock worth $36,123,803. Corporate insiders own 28.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on RDDT. Raymond James Financial set a $180.00 price target on Reddit and gave the company a "market perform" rating in a research report on Friday, May 1st. Citigroup reiterated a "market outperform" rating on shares of Reddit in a research report on Tuesday, May 26th. Rothschild & Co Redburn set a $110.00 price target on Reddit in a research report on Monday, April 27th. Truist Financial set a $265.00 price target on Reddit in a research report on Friday, May 1st. Finally, Needham & Company LLC restated a "buy" rating and set a $300.00 target price on shares of Reddit in a research report on Friday, May 1st. Eighteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Reddit presently has a consensus rating of "Moderate Buy" and a consensus price target of $230.75.

Reddit Price Performance

NYSE RDDT opened at $181.83 on Tuesday. The business has a 50 day simple moving average of $158.30 and a 200 day simple moving average of $176.49. Reddit Inc. has a one year low of $119.27 and a one year high of $282.95. The stock has a market capitalization of $35.00 billion, a P/E ratio of 51.95 and a beta of 1.91.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company's quarterly revenue was up 69.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.13 earnings per share. Equities analysts expect that Reddit Inc. will post 4.83 earnings per share for the current year.

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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