Reddit Inc. $RDDT Shares Sold by Meridiem Capital Partners LP

Key Points

• Meridiem Capital Partners LP cut its Reddit stake by 39% in Q3, selling 32,748 shares and holding 51,256 shares valued at about $11.79 million.
• Significant insider selling occurred recently — Benjamin Seong Lee sold 55,005 shares and CEO Steve Huffman sold 18,000 shares; insiders have sold 433,335 shares (~$89.14 million) in the past 90 days and own 34.25% of the stock.
• Reddit reported a strong quarter with $1.24 EPS and revenue of $725.61 million (up 69.7% YoY), and analysts maintain a “Moderate Buy” consensus with an average target of $236.

Meridiem Capital Partners LP lowered its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 39.0% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 51,256 shares of the company's stock after selling 32,748 shares during the quarter. Meridiem Capital Partners LP's holdings in Reddit were worth $11,788,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Resona Asset Management Co. Ltd. lifted its holdings in shares of Reddit by 53.2% in the 3rd quarter. Resona Asset Management Co. Ltd. now owns 30,944 shares of the company's stock valued at $7,166,000 after buying an additional 10,743 shares during the period. Vanguard Group Inc. grew its holdings in Reddit by 12.9% during the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after acquiring an additional 1,401,293 shares during the period. Optimize Financial Inc acquired a new position in Reddit during the third quarter worth $1,420,000. WT Asset Management Ltd purchased a new position in Reddit in the third quarter worth $92,973,000. Finally, Wealth Enhancement Advisory Services LLC raised its position in Reddit by 95.4% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 16,139 shares of the company's stock worth $3,712,000 after acquiring an additional 7,881 shares in the last quarter.

Insider Activity

In other Reddit news, insider Benjamin Seong Lee sold 55,005 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $221.21, for a total transaction of $12,167,656.05. Following the transaction, the insider owned 62,608 shares of the company's stock, valued at $13,849,515.68. This trade represents a 46.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction on Monday, December 15th. The shares were sold at an average price of $220.28, for a total transaction of $3,965,040.00. Following the completion of the transaction, the chief executive officer owned 448,576 shares in the company, valued at approximately $98,812,321.28. This trade represents a 3.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 433,335 shares of company stock valued at $89,139,359 in the last ninety days. 34.25% of the stock is owned by company insiders.

Reddit Price Performance

NYSE:RDDT traded up $3.63 during mid-day trading on Friday, reaching $135.88. The company's stock had a trading volume of 800,945 shares, compared to its average volume of 5,669,965. The stock has a market cap of $25.96 billion, a P/E ratio of 51.72, a P/E/G ratio of 1.00 and a beta of 2.40. The company's fifty day simple moving average is $179.79 and its two-hundred day simple moving average is $205.64. Reddit Inc. has a twelve month low of $79.75 and a twelve month high of $282.95.

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

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Morgan Stanley set a $240.00 price objective on shares of Reddit in a report on Friday, February 6th. B. Riley Financial raised their price objective on Reddit from $245.00 to $250.00 and gave the company a "buy" rating in a research note on Friday, February 6th. Cantor Fitzgerald decreased their target price on Reddit from $240.00 to $170.00 and set a "neutral" rating on the stock in a research report on Friday, February 6th. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Finally, Wells Fargo & Company set a $196.00 price target on Reddit in a research report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Reddit currently has an average rating of "Moderate Buy" and a consensus target price of $236.00.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.