Reddit Inc. $RDDT is Avala Global LP's 9th Largest Position

Key Points

• Avala Global LP trimmed its Reddit stake by 4.1% to 488,683 shares (about $112.4M), leaving Reddit as its 9th-largest holding and 4.6% of the fund's portfolio.
• Reddit beat quarterly expectations with $1.24 EPS vs. $0.96 est. and $725.6M revenue vs. $665.8M est., a 69.7% year-over-year revenue increase and a 24.05% net margin.
• Institutional activity and analyst views are mixed: new and bigger positions from CalPERS and Bank of America (BofA now owns ~1.72M shares), a consensus rating of Moderate Buy with an average target of $236, but insiders sold ~433,335 shares (~$89.1M) in the last 90 days (insiders own 34.25%).

Avala Global LP cut its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 4.1% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 488,683 shares of the company's stock after selling 20,800 shares during the quarter. Reddit comprises 4.6% of Avala Global LP's portfolio, making the stock its 9th biggest position. Avala Global LP owned about 0.26% of Reddit worth $112,392,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. California Public Employees Retirement System acquired a new position in shares of Reddit in the 3rd quarter valued at about $46,426,000. Bank of America Corp DE increased its position 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 purchasing an additional 478,095 shares in the last quarter. Bank of Nova Scotia purchased a new position in Reddit in the third quarter valued at approximately $7,493,000. Boothbay Fund Management LLC purchased a new position in Reddit in the third quarter valued at approximately $537,000. Finally, JAT Capital Mgmt LP acquired a new position in Reddit during the third quarter valued at approximately $2,495,000.

Analyst Ratings Changes

Several research firms have issued reports on RDDT. Needham & Company LLC reissued a "buy" rating and issued a $300.00 price objective on shares of Reddit in a research report on Friday, February 6th. B. Riley Financial lifted their target price on shares of Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a report on Friday, February 6th. Oppenheimer decreased their price target on shares of Reddit from $300.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, February 6th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Reddit in a report on Monday, December 29th. Finally, Piper Sandler reissued an "overweight" rating and issued a $205.00 price objective (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $236.00.

Reddit Trading Down 0.0%

NYSE RDDT opened at $132.21 on Friday. The stock has a market cap of $25.26 billion, a P/E ratio of 50.46, a PEG ratio of 0.96 and a beta of 2.40. The company's fifty day simple moving average is $177.60 and its 200-day simple moving average is $204.92. Reddit Inc. has a 52 week low of $79.75 and a 52 week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.96 by $0.28. Reddit had a net margin of 24.05% and a return on equity of 20.89%. The business had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same period last year, the business earned $0.36 EPS. The business's revenue was up 69.7% on a year-over-year basis. On average, research analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insider Activity at Reddit

In other news, CAO Michelle Marie Reynolds sold 2,291 shares of Reddit stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $143.59, for a total transaction of $328,964.69. Following the sale, the chief accounting officer directly owned 17,133 shares of the company's stock, valued at approximately $2,460,127.47. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Jennifer L. Wong sold 30,777 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $143.42, for a total value of $4,414,037.34. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $156,105,642.42. This trade represents a 2.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 433,335 shares of company stock valued at $89,139,359. 34.25% of the stock is currently owned by insiders.

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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