Wincap Financial LLC Invests $575,000 in Reddit Inc. (NYSE:RDDT)

Key Points

• Wincap Financial LLC has acquired a new stake in Reddit Inc., purchasing 5,477 shares valued at approximately $575,000 during the first quarter.
• Analysts have shown positive sentiment towards Reddit, with multiple upgrades and a current consensus target price of $144.13, indicating a potential for growth.
• Reddit reported earnings of $0.13 EPS, significantly beating expectations, and its revenue increased by 61.5% compared to the same quarter last year.

Wincap Financial LLC acquired a new position in Reddit Inc. (NYSE:RDDT - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 5,477 shares of the company's stock, valued at approximately $575,000.

Several other large investors also recently made changes to their positions in the business. Alliancebernstein L.P. boosted its stake in Reddit by 1,011.1% during the 4th quarter. Alliancebernstein L.P. now owns 2,788,758 shares of the company's stock valued at $455,795,000 after acquiring an additional 2,537,768 shares during the last quarter. Whale Rock Capital Management LLC bought a new position in Reddit during the 4th quarter valued at $204,054,000. Renaissance Technologies LLC boosted its stake in Reddit by 265.4% during the 4th quarter. Renaissance Technologies LLC now owns 1,650,500 shares of the company's stock valued at $269,758,000 after acquiring an additional 1,198,800 shares during the last quarter. Voya Investment Management LLC bought a new position in Reddit during the 4th quarter valued at $157,984,000. Finally, FMR LLC boosted its stake in Reddit by 7.5% during the 4th quarter. FMR LLC now owns 13,070,780 shares of the company's stock valued at $2,136,288,000 after acquiring an additional 913,189 shares during the last quarter.

Insider Buying and Selling at Reddit

In related news, CFO Andrew Vollero sold 30,000 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $117.64, for a total transaction of $3,529,200.00. Following the transaction, the chief financial officer owned 333,806 shares of the company's stock, valued at approximately $39,268,937.84. This trade represents a 8.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Jennifer L. Wong sold 33,334 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $142.06, for a total transaction of $4,735,428.04. Following the transaction, the chief operating officer directly owned 1,428,007 shares in the company, valued at approximately $202,862,674.42. The trade was a 2.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 506,809 shares of company stock worth $61,884,325 in the last ninety days. Insiders own 34.25% of the company's stock.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of research reports. Raymond James Financial increased their target price on shares of Reddit from $150.00 to $175.00 and gave the stock a "strong-buy" rating in a report on Monday. Wall Street Zen raised shares of Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. B. Riley reissued a "buy" rating and set a $220.00 target price (down from $222.00) on shares of Reddit in a report on Friday, May 2nd. Seaport Res Ptn raised shares of Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. Finally, Needham & Company LLC increased their price objective on shares of Reddit from $145.00 to $165.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have assigned a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $144.75.

Reddit Trading Up 6.5%

Shares of RDDT traded up $9.76 during midday trading on Thursday, hitting $159.09. The stock had a trading volume of 10,375,857 shares, compared to its average volume of 7,714,126. Reddit Inc. has a fifty-two week low of $49.13 and a fifty-two week high of $230.41. The business has a 50-day simple moving average of $133.97 and a two-hundred day simple moving average of $138.54. The firm has a market cap of $29.36 billion, a P/E ratio of 269.53, a price-to-earnings-growth ratio of 3.71 and a beta of 2.33.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.02 by $0.11. The business had revenue of $392.36 million during the quarter, compared to analysts' expectations of $370.55 million. Reddit had a net margin of 8.07% and a return on equity of 5.69%. The firm's quarterly revenue was up 61.5% compared to the same quarter last year. During the same period last year, the company posted ($8.19) earnings per share. On average, analysts expect that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.