Square Peg Capital PTY Ltd. Buys Shares of 47,384 Reddit Inc. $RDDT

Square Peg Capital PTY Ltd. bought a new stake in Reddit Inc. (NYSE:RDDT) in the 4th quarter, according to its most recent disclosure with the SEC. The fund bought 47,384 shares of the company’s stock, valued at approximately $10,892,000. Reddit makes up approximately 10.9% of Square Peg Capital PTY Ltd.’s portfolio, making the stock its 6th biggest holding.

A number of other institutional investors and hedge funds have also made changes to their positions in RDDT. Vanguard Group Inc. lifted its stake 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 purchasing an additional 1,401,293 shares during the last quarter. Truist Financial Corp lifted its stake in Reddit by 67.7% in the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after buying an additional 6,321 shares during the last quarter. Swiss Life Asset Management Ltd lifted its stake in Reddit by 63.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock valued at $7,357,000 after buying an additional 12,398 shares during the last quarter. WT Asset Management Ltd purchased a new stake in Reddit in the third quarter valued at approximately $92,973,000. Finally, Calamos Advisors LLC purchased a new stake in shares of Reddit during the fourth quarter worth approximately $2,299,000.

Analyst Upgrades and Downgrades

RDDT has been the subject of several analyst reports. Truist Financial set a $265.00 price target on Reddit in a research note on Friday, May 1st. The Goldman Sachs Group reissued a “neutral” rating and issued a $200.00 target price on shares of Reddit in a report on Friday, May 1st. DA Davidson reissued a “buy” rating and issued a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Loop Capital reaffirmed a “buy” rating and set a $260.00 price objective on shares of Reddit in a research note on Thursday, June 4th. Finally, Jefferies Financial Group decreased their price objective on Reddit from $285.00 to $250.00 and set a “buy” rating on the stock in a research note on Tuesday, March 10th. Eighteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, Reddit currently has an average rating of “Moderate Buy” and an average price target of $230.75.

Reddit Price Performance

Reddit stock opened at $162.11 on Friday. The stock’s 50-day moving average is $157.38 and its 200-day moving average is $176.88. The company has a market cap of $31.21 billion, a price-to-earnings ratio of 46.32 and a beta of 1.91. Reddit Inc. has a 12 month low of $112.30 and a 12 month high of $282.95.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. During the same quarter last year, the firm earned $0.13 earnings per share. The company’s revenue for the quarter was up 69.1% compared to the same quarter last year. Research analysts anticipate that Reddit Inc. will post 4.83 EPS for the current year.

Insider Activity

In other news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at approximately $172,541,252.52. This trade represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the firm’s stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $174.13, for a total value of $3,134,340.00. Following the sale, the chief executive officer owned 373,814 shares of the company’s stock, valued at approximately $65,092,231.82. This trade represents a 4.59% 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. Over the last quarter, insiders sold 232,499 shares of company stock worth $36,123,803. 28.48% of the stock is currently owned by corporate insiders.

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.