Reddit Inc. $RDDT Shares Acquired by Bessemer Group Inc.

Key Points

• Bessemer Group Inc. dramatically increased its Reddit stake in the fourth quarter, reporting 458,911 shares worth about $105.5 million after adding 458,881 shares.
• Reddit's latest quarterly results beat expectations, with earnings of $1.01 per share and revenue of $663.41 million, up 69.1% year over year.
• Despite the strong results, insiders have been selling shares recently, while analysts remain mixed but generally constructive, with a Moderate Buy consensus and an average price target of $228.61.

Bessemer Group Inc. lifted its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 1,529,603.3% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 458,911 shares of the company's stock after buying an additional 458,881 shares during the period. Bessemer Group Inc. owned approximately 0.24% of Reddit worth $105,489,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in RDDT. NewEdge Advisors LLC increased its holdings in Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock valued at $837,000 after purchasing an additional 4,701 shares in the last quarter. Empowered Funds LLC acquired a new stake in Reddit in the 1st quarter valued at $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Reddit by 106.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock valued at $22,759,000 after purchasing an additional 111,780 shares in the last quarter. Focus Partners Wealth increased its holdings in Reddit by 40.8% in the 1st quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock valued at $1,073,000 after purchasing an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. increased its holdings in 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.

Reddit Price Performance

NYSE:RDDT opened at $158.44 on Friday. The firm has a 50-day moving average of $146.48 and a two-hundred day moving average of $181.56. The stock has a market cap of $30.50 billion, a P/E ratio of 45.27 and a beta of 1.85. Reddit Inc. has a 1-year low of $94.89 and a 1-year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $663.41 million during the quarter, compared to analysts' expectations of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm's revenue for the quarter was up 69.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.13 EPS. As a group, equities analysts expect that Reddit Inc. will post 4.83 earnings per share for the current year.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $145.12, for a total transaction of $2,612,160.00. Following the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at approximately $59,672,618.40. This trade represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Christopher Brian Slowe sold 19,036 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the transaction, the chief technology officer directly owned 185,057 shares in the company, valued at $26,657,460.85. The trade was a 9.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 268,977 shares of company stock valued at $39,750,959 in the last ninety days. Insiders own 34.25% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on RDDT shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a report on Friday, May 8th. Bank of America lowered their price target on Reddit from $205.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday, April 2nd. Guggenheim increased their price target on Reddit from $245.00 to $255.00 and gave the company a "buy" rating in a report on Friday, February 6th. DA Davidson reiterated a "buy" rating and issued a $200.00 price target on shares of Reddit in a report on Friday, May 1st. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $300.00 price target on shares of Reddit in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, Reddit presently has an average rating of "Moderate Buy" and a consensus target price of $228.61.

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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