Reddit Inc. $RDDT Shares Acquired by FirstWave Capital Management LLC

Key Points

• FirstWave Capital Management increased its Reddit stake by 43.2% in the second quarter to 77,389 shares valued at approximately $13.4 million, making Reddit its largest portfolio holding.
• Reddit reported strong quarterly results, with EPS of $1.25 versus expectations of $0.95 and revenue of $804.9 million, up 61% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $221.10.
• Reddit shares opened at $154.18, below their 50-day moving average, while insiders sold 210,102 shares worth $36.4 million over the past 90 days, primarily through pre-arranged trading plans.

FirstWave Capital Management LLC increased its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 43.2% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 77,389 shares of the company's stock after buying an additional 23,356 shares during the period. Reddit comprises about 5.9% of FirstWave Capital Management LLC's investment portfolio, making the stock its largest position. FirstWave Capital Management LLC's holdings in Reddit were worth $13,433,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently added to or reduced their stakes in the stock. Capital World Investors acquired a new stake in shares of Reddit in the 4th quarter valued at about $1,293,258,000. Norges Bank acquired a new position in Reddit in the fourth quarter worth about $372,047,000. Invesco Ltd. increased its holdings in Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after buying an additional 1,201,237 shares during the last quarter. State Street Corp increased its holdings in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after buying an additional 1,178,890 shares during the last quarter. Finally, Wellington Management Group LLP raised its stake in Reddit by 125.4% during the fourth quarter. Wellington Management Group LLP now owns 1,224,045 shares of the company's stock valued at $281,371,000 after buying an additional 681,076 shares in the last quarter.

Insider Activity at Reddit

In other Reddit news, CEO Steve Huffman sold 18,000 shares of the business's stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $64,718,417.82. The trade was a 4.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Reynolds sold 808 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total transaction of $161,600.00. Following the completion of the sale, the chief accounting officer directly owned 15,060 shares of the company's stock, valued at approximately $3,012,000. This represents a 5.09% 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 sold a total of 210,102 shares of company stock worth $36,375,252 in the last 90 days. Corporate insiders own 28.48% of the company's stock.

Reddit Stock Down 1.2%

Shares of NYSE:RDDT opened at $154.18 on Friday. The company has a market cap of $29.66 billion, a PE ratio of 35.86, a P/E/G ratio of 0.72 and a beta of 2.02. The company's 50-day moving average price is $170.58 and its 200 day moving average price is $158.80. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $804.91 million during the quarter, compared to analysts' expectations of $731.00 million. During the same quarter in the prior year, the firm earned $0.45 EPS. Reddit's quarterly revenue was up 61.0% on a year-over-year basis. As a group, equities analysts anticipate that Reddit Inc. will post 5.27 EPS for the current year.

Analyst Upgrades and Downgrades

RDDT has been the subject of a number of research analyst reports. Roth Capital reiterated a "neutral" rating and issued a $145.00 price target on shares of Reddit in a report on Monday, August 3rd. B. Riley Financial lifted their price target on shares of Reddit from $250.00 to $270.00 and gave the company a "buy" rating in a report on Friday, July 31st. Jefferies Financial Group set a $250.00 target price on shares of Reddit in a report on Friday, July 10th. Oppenheimer decreased their target price on Reddit from $225.00 to $200.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Finally, DA Davidson reaffirmed a "buy" rating and set a $200.00 target price on shares of Reddit in a report on Thursday, July 23rd. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $221.10.

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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