Reddit Inc. $RDDT Shares Bought by Draper Asset Management LLC

Key Points

• Draper Asset Management LLC increased its stake in Reddit by 95% in Q4 to 16,323 shares worth $3.752 million, making RDDT its 10th largest holding (~2% of the fund's portfolio).
• Reddit beat estimates for the quarter with EPS of $1.24 (vs. $0.96 consensus) and revenue of $725.61 million, up 69.7% YoY, signaling strong recent growth.
• Notable insider activity: COO Jennifer L. Wong sold 33,507 shares for about $4.8 million while Director Sarah E. Farrell purchased 43,800 shares at $149.52, and insiders now own 34.25% of the stock.

Draper Asset Management LLC increased its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 95.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 16,323 shares of the company's stock after buying an additional 7,953 shares during the period. Reddit accounts for about 2.0% of Draper Asset Management LLC's investment portfolio, making the stock its 10th biggest holding. Draper Asset Management LLC's holdings in Reddit were worth $3,752,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of the business. Raiffeisen Bank International AG acquired a new stake in Reddit during the 3rd quarter worth $25,000. GW&K Investment Management LLC bought a new position in shares of Reddit in the 3rd quarter worth $30,000. Cornerstone Planning Group LLC grew its stake in shares of Reddit by 13,500.0% during the third quarter. Cornerstone Planning Group LLC now owns 136 shares of the company's stock worth $31,000 after purchasing an additional 135 shares during the period. LOM Asset Management Ltd acquired a new stake in shares of Reddit during the fourth quarter worth $33,000. Finally, Noble Wealth Management PBC bought a new stake in Reddit in the fourth quarter valued at about $34,000.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. B. Riley Financial increased their target price on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a research note on Friday, February 6th. Morgan Stanley set a $240.00 price target on Reddit in a research note on Friday, February 6th. The Goldman Sachs Group cut their price target on shares of Reddit from $206.00 to $180.00 and set a "neutral" rating on the stock in a research report on Tuesday. Guggenheim lifted their price objective on shares of Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a research note on Friday, February 6th. Finally, Evercore restated an "outperform" rating and set a $290.00 price objective on shares of Reddit in a report on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus price target of $237.46.

Insider Activity at Reddit

In other news, COO Jennifer L. Wong sold 33,507 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $143.41, for a total value of $4,805,238.87. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $156,094,757.91. This represents a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sarah E. Farrell acquired 43,800 shares of the stock in a transaction dated Tuesday, February 10th. The shares were bought at an average cost of $149.52 per share, with a total value of $6,548,976.00. Following the transaction, the director directly owned 43,800 shares of the company's stock, valued at $6,548,976. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders bought 61,000 shares of company stock worth $8,870,815 and sold 294,441 shares worth $46,813,210. 34.25% of the stock is currently owned by corporate insiders.

Reddit Trading Up 2.5%

NYSE:RDDT opened at $162.38 on Friday. Reddit Inc. has a 1 year low of $90.78 and a 1 year high of $282.95. The stock has a 50-day moving average price of $141.15 and a two-hundred day moving average price of $188.09. The stock has a market cap of $31.02 billion, a price-to-earnings ratio of 61.98, a PEG ratio of 1.15 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The business had revenue of $725.61 million for the quarter, compared to analysts' expectations of $665.80 million. During the same quarter in the previous year, the business posted $0.36 EPS. Reddit's revenue for the quarter was up 69.7% on a year-over-year basis. Sell-side analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current year.

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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