WT Asset Management Ltd Increases Stake in Reddit Inc. $RDDT

Key Points

• WT Asset Management increased its Reddit stake by 77.3% in Q4 to 716,900 shares (about $164.8 million), making Reddit 6.5% of the fund's portfolio and its fourth-largest holding.
• Reddit outperformed expectations in the quarter with EPS of $1.24 versus $0.96 expected and revenue of $725.6 million, up 69.7% year-over-year.
• Mixed insider activity: Director Sarah Farrell bought 43,800 shares at ~$149.52 while CTO Christopher Slowe sold 19,036 shares, and insiders have net sold more than they bought over the past 90 days; insiders own 34.25% of the company.

WT Asset Management Ltd boosted its position in Reddit Inc. (NYSE:RDDT - Free Report) by 77.3% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 716,900 shares of the company's stock after acquiring an additional 312,650 shares during the period. Reddit accounts for 6.5% of WT Asset Management Ltd's investment portfolio, making the stock its 4th biggest position. WT Asset Management Ltd owned approximately 0.38% of Reddit worth $164,794,000 at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of the stock. Huntington National Bank boosted its stake in shares of Reddit by 25.6% during the 3rd quarter. Huntington National Bank now owns 270 shares of the company's stock valued at $62,000 after purchasing an additional 55 shares in the last quarter. Institute for Wealth Management LLC. boosted its stake in shares of Reddit by 6.1% during the 4th quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company's stock valued at $246,000 after purchasing an additional 62 shares in the last quarter. Roxbury Financial LLC boosted its stake in shares of Reddit by 7.4% during the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company's stock valued at $214,000 after purchasing an additional 64 shares in the last quarter. Kingswood Wealth Advisors LLC boosted its stake in shares of Reddit by 5.0% during the 3rd quarter. Kingswood Wealth Advisors LLC now owns 1,439 shares of the company's stock valued at $331,000 after purchasing an additional 69 shares in the last quarter. Finally, IFP Advisors Inc boosted its stake in shares of Reddit by 9.9% during the 3rd quarter. IFP Advisors Inc now owns 796 shares of the company's stock valued at $183,000 after purchasing an additional 72 shares in the last quarter.

Reddit Price Performance

Shares of NYSE RDDT opened at $154.79 on Friday. Reddit Inc. has a 1 year low of $94.89 and a 1 year high of $282.95. The stock has a market cap of $29.57 billion, a P/E ratio of 59.08, a price-to-earnings-growth ratio of 1.11 and a beta of 2.40. The firm has a 50-day moving average of $143.49 and a 200 day moving average of $185.81.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (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 analysts' expectations of $665.80 million. During the same period last year, the company posted $0.36 EPS. Reddit's revenue was up 69.7% on a year-over-year basis. Research analysts expect that Reddit Inc. will post 4.02 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on RDDT. Guggenheim lifted their target price on shares of Reddit from $245.00 to $255.00 and gave the company a "buy" rating in a research note on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Reddit in a research note on Monday, December 29th. Bank of America cut their target price on shares of Reddit from $205.00 to $175.00 and set a "neutral" rating on the stock in a research note on Thursday, April 2nd. Jefferies Financial Group cut their target price on shares of Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a research note on Tuesday, March 10th. Finally, JPMorgan Chase & Co. cut their target price on shares of Reddit from $227.00 to $200.00 and set a "neutral" rating on the stock in a research note on Friday, February 6th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $234.22.

Insider Buying and Selling at Reddit

In other Reddit news, Director Sarah E. Farrell purchased 43,800 shares of the stock in a transaction that occurred on Tuesday, February 10th. The stock was 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 in the company, valued at approximately $6,548,976. The trade was a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CTO Christopher Brian Slowe sold 19,036 shares of Reddit stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $144.05, for a total transaction of $2,742,135.80. Following the transaction, the chief technology officer directly owned 185,057 shares of the company's stock, valued at approximately $26,657,460.85. This trade represents a 9.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders purchased 61,000 shares of company stock valued at $8,870,815 and sold 298,441 shares valued at $44,170,999. Company insiders own 34.25% of the company's stock.

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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