Reddit Inc. $RDDT Shares Bought by CastleKnight Management LP

Key Points

• CastleKnight Management LP more than doubled its Reddit position in the fourth quarter, increasing its stake by 101.3% to 15,700 shares valued at about $3.6 million.
• Reddit continues to attract major institutional interest, with firms like Capital World Investors, Norges Bank, and Vanguard also boosting or initiating large positions in the stock.
• The company reported strong quarterly results, including EPS of $1.01 versus $0.62 expected and revenue of $663.4 million, while analysts currently rate the stock Moderate Buy with a consensus price target of $230.75.

CastleKnight Management LP raised its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 101.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 15,700 shares of the company's stock after acquiring an additional 7,900 shares during the period. CastleKnight Management LP's holdings in Reddit were worth $3,609,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently bought and sold shares of RDDT. Capital World Investors acquired a new position in Reddit in the fourth quarter valued at approximately $1,293,258,000. Norges Bank bought a new stake in shares of Reddit during the fourth quarter valued at approximately $372,047,000. Vanguard Group Inc. raised its holdings in shares of Reddit by 12.9% during the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after buying an additional 1,401,293 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Reddit by 419.0% during 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. Finally, State Street Corp raised its holdings in shares of Reddit by 138.5% during 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.

Reddit Price Performance

Shares of NYSE:RDDT opened at $165.98 on Thursday. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $282.95. The stock has a market cap of $31.95 billion, a price-to-earnings ratio of 47.42 and a beta of 1.91. The stock's 50 day moving average price is $159.63 and its 200 day moving average price is $175.98.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.01 EPS 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 analysts' expectations of $607.74 million. During the same quarter in the previous year, the company earned $0.13 earnings per share. The firm's quarterly revenue was up 69.1% compared to the same quarter last year. On average, sell-side analysts expect that Reddit Inc. will post 4.83 EPS for the current year.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of recent analyst reports. Citigroup reaffirmed a "market outperform" rating on shares of Reddit in a report on Tuesday, May 26th. Needham & Company LLC reaffirmed a "buy" rating and set a $300.00 price target on shares of Reddit in a report on Friday, May 1st. Rothschild & Co Redburn set a $110.00 price target on Reddit in a report on Monday, April 27th. Piper Sandler reaffirmed an "overweight" rating and set a $215.00 price target (up from $205.00) on shares of Reddit in a report on Friday, May 1st. Finally, Citizens Jmp cut their price target on Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a 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, the company has an average rating of "Moderate Buy" and a consensus price target of $230.75.

Insider Buying and Selling

In related news, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the sale, the chief technology officer owned 38,413 shares of the company's stock, valued at $5,787,686.71. The trade was a 28.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $178.26, for a total value of $3,208,680.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $66,636,083.64. The trade was a 4.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 211,334 shares of company stock valued at $33,715,773 over the last quarter. Corporate insiders own 28.48% of the company's stock.

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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