Rakuten Investment Management Inc. Acquires New Position in Reddit Inc. $RDDT

Rakuten Investment Management Inc. purchased a new position in Reddit Inc. (NYSE:RDDT) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 24,844 shares of the company’s stock, valued at approximately $3,611,000.

Other large investors also recently bought and sold shares of the company. Sunbelt Securities Inc. boosted its holdings in Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after purchasing an additional 91 shares during the last quarter. Ascentis Independent Advisors acquired a new stake in shares of Reddit during the 1st quarter worth about $30,000. EverSource Wealth Advisors LLC boosted its holdings in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. purchased a new position in Reddit in the second quarter valued at approximately $35,000. Finally, Root Financial Partners LLC acquired a new stake in Reddit during the third quarter worth approximately $41,000.

Reddit Trading Up 1.4%

RDDT stock traded up $1.31 on Friday, hitting $95.12. The company’s stock had a trading volume of 6,288,291 shares, compared to its average volume of 6,781,794. The stock has a market cap of $18.30 billion, a price-to-earnings ratio of 19.41, a price-to-earnings-growth ratio of 0.42 and a beta of 2.28. The firm has a 50 day moving average of $144.38 and a two-hundred day moving average of $156.66. Reddit Inc. has a 1 year low of $89.28 and a 1 year high of $263.50.

Reddit (NYSE:RDDT) last issued its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The company had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. During the same period last year, the firm posted $0.80 EPS. Reddit’s revenue for the quarter was up 53.0% on a year-over-year basis. As a group, equities analysts forecast that Reddit Inc. will post 5.42 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Mary Gale sold 3,000 shares of the business’s stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $96.00, for a total value of $288,000.00. Following the transaction, the director owned 18,181 shares in the company, valued at $1,745,376. The trade was a 14.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Steve Huffman sold 18,000 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $178.16, for a total value of $3,206,880.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at $66,598,702.24. This trade represents a 4.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 291,052 shares of company stock worth $47,166,483. Corporate insiders own 28.48% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. B. Riley Financial dropped their target price on shares of Reddit from $270.00 to $190.00 and set a “buy” rating on the stock in a research report on Friday, October 30th. Wedbush decreased their price objective on shares of Reddit from $221.00 to $150.00 and set an “outperform” rating for the company in a research note on Friday, October 30th. DA Davidson dropped their price objective on Reddit from $185.00 to $125.00 and set a “buy” rating on the stock in a report on Monday. Sanford C. Bernstein reiterated a “market perform” rating and set a $120.00 target price (down from $180.00) on shares of Reddit in a research report on Friday, October 30th. Finally, Wells Fargo & Company cut their target price on Reddit from $142.00 to $110.00 and set an “equal weight” rating on the stock in a research report on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $180.91.

About Reddit

Reddit, Inc operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community.

The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications.

Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.