Reddit Inc. $RDDT Shares Newly Purchased by Capstone Capital Management Ltd

Key Points

• Capstone Capital Management initiated a Reddit position of 9,257 shares worth approximately $1.3 million in the third quarter. Other major institutions, including Robeco, Wellington Management and State Street, also increased or established holdings.
• Reddit reported quarterly earnings of $1.25 per share, beating estimates by $0.30, while revenue rose 61% year over year to $804.91 million. Shares opened at $155.59, well below their 52-week high of $263.50.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $219.29 price target. Meanwhile, insiders sold more than 306,000 shares worth roughly $49.8 million over the past 90 days.

Capstone Capital Management Ltd purchased a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 9,257 shares of the company's stock, valued at approximately $1,319,000.

Several other large investors also recently made changes to their positions in RDDT. Senvest Management LLC bought a new position in shares of Reddit in the 1st quarter valued at about $48,392,000. Robeco Institutional Asset Management B.V. boosted its holdings in shares of Reddit by 74.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock worth $115,243,000 after buying an additional 345,735 shares during the period. Wellington Management Group LLP raised its holdings in Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock valued at $271,572,000 after acquiring an additional 280,030 shares during the period. Styrax Capital LP bought a new stake in shares of Reddit during the second quarter worth approximately $43,395,000. Finally, State Street Corp lifted its holdings in Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after purchasing an additional 237,523 shares during the last quarter.

Reddit Stock Performance

RDDT stock opened at $155.59 on Wednesday. Reddit Inc. has a 52-week low of $119.27 and a 52-week high of $263.50. The company has a market capitalization of $29.93 billion, a P/E ratio of 36.08, a PEG ratio of 0.72 and a beta of 2.05. The company has a fifty day moving average price of $154.14 and a 200-day moving average price of $161.93.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company 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 posted $0.45 earnings per share. The business's quarterly revenue was up 61.0% on a year-over-year basis. As a group, sell-side analysts forecast that Reddit Inc. will post 5.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Steve Huffman sold 17,308 shares of Reddit stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $158.57, for a total value of $2,744,529.56. Following the completion of the transaction, the chief executive officer directly owned 336,432 shares of the company's stock, valued at approximately $53,348,022.24. This trade represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the sale, the director owned 27,087 shares of the company's stock, valued at approximately $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 306,052 shares of company stock worth $49,754,523. Company insiders own 28.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Guggenheim reissued a "buy" rating on shares of Reddit in a research report on Wednesday, September 16th. Morgan Stanley dropped their price target on Reddit from $240.00 to $210.00 and set an "overweight" rating for the company in a research note on Friday, August 21st. B. Riley Financial boosted their target price on shares of Reddit from $250.00 to $270.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Telsey Advisory Group set a $240.00 price objective on shares of Reddit in a research note on Friday, July 31st. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $195.00 target price (down from $215.00) on shares of Reddit in a report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, Reddit has a consensus rating of "Moderate Buy" and a consensus price target of $219.29.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.

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