Reddit Inc. $RDDT Stock Holdings Trimmed by BIT Capital GmbH

Key Points

• BIT Capital GmbH cut its Reddit stake by 28% in the fourth quarter, selling 218,584 shares and leaving it with 563,421 shares worth about $129.5 million. Reddit still represents roughly 4.8% of the firm’s holdings.
• Reddit posted strong quarterly results, reporting EPS of $1.01 versus the $0.62 consensus and revenue of $663.4 million, up 69.1% year over year. The company also delivered a net margin of 28.6% and return on equity of 25.48%.
• Analysts remain generally upbeat on RDDT, with 18 Buy ratings and 12 Hold ratings and an average price target of $230.75. Several firms recently reiterated bullish targets, including Evercore at $290 and Truist at $265.

BIT Capital GmbH lowered its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 28.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 563,421 shares of the company's stock after selling 218,584 shares during the period. Reddit makes up approximately 4.8% of BIT Capital GmbH's holdings, making the stock its 6th largest holding. BIT Capital GmbH owned about 0.30% of Reddit worth $129,514,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in shares of Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares in the last quarter. State Street Corp lifted its holdings in shares of Reddit by 22.3% during the 3rd quarter. State Street Corp now owns 2,481,931 shares of the company's stock valued at $570,819,000 after buying an additional 451,792 shares during the period. Geode Capital Management LLC increased its stake in shares of Reddit by 4.7% in the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock worth $546,789,000 after purchasing an additional 106,821 shares in the last quarter. Bank of America Corp DE increased its stake in shares of Reddit by 38.4% in the 3rd quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock worth $396,632,000 after purchasing an additional 478,095 shares in the last quarter. Finally, Norges Bank purchased a new stake in Reddit in the 4th quarter worth $372,047,000.

Reddit Price Performance

NYSE:RDDT opened at $173.37 on Friday. The firm has a market capitalization of $33.38 billion, a price-to-earnings ratio of 49.53 and a beta of 1.91. The company's 50-day moving average is $153.12 and its two-hundred day moving average is $177.36. Reddit Inc. has a 1-year low of $110.85 and a 1-year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same period in the prior year, the business earned $0.13 EPS. The firm's quarterly revenue was up 69.1% on a year-over-year basis. As a group, equities analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction dated Wednesday, April 8th. The shares were 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 approximately $5,787,686.71. The trade was a 28.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at $172,541,252.52. This trade represents a 3.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 259,999 shares of company stock valued at $39,812,508 over the last quarter. Corporate insiders own 28.48% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RDDT. Evercore restated an "outperform" rating and set a $290.00 price objective on shares of Reddit in a research report on Friday, February 6th. Oppenheimer reissued an "outperform" rating and issued a $225.00 price objective on shares of Reddit in a research note on Friday, May 1st. Robert W. Baird set a $200.00 target price on shares of Reddit in a research report on Friday, February 6th. Truist Financial set a $265.00 price objective on shares of Reddit in a report on Friday, May 1st. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $215.00 price target (up from $205.00) on shares of Reddit in a report on Friday, May 1st. Eighteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $230.75.

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.

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.