DSM Capital Partners LLC Makes New $182.59 Million Investment in Reddit Inc. $RDDT

DSM Capital Partners LLC bought a new position in shares of Reddit Inc. (NYSE:RDDT) during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 793,905 shares of the company’s stock, valued at approximately $182,590,000. Reddit makes up approximately 2.6% of DSM Capital Partners LLC’s portfolio, making the stock its 10th biggest position. DSM Capital Partners LLC owned 0.42% of Reddit as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Teacher Retirement System of Texas raised its position in shares of Reddit by 880.5% in the second quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock valued at $14,255,000 after buying an additional 85,020 shares during the last quarter. Union Bancaire Privee UBP SA purchased a new stake in Reddit during the 2nd quarter valued at about $2,078,000. J. Safra Sarasin Holding AG acquired a new stake in Reddit in the 2nd quarter valued at about $226,000. Plato Investment Management Ltd raised its holdings in Reddit by 120.2% in the 2nd quarter. Plato Investment Management Ltd now owns 2,970 shares of the company’s stock valued at $446,000 after acquiring an additional 1,621 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey purchased a new position in Reddit in the 2nd quarter worth approximately $2,666,000.

Insider Activity at Reddit

In other Reddit news, insider Benjamin Seong Lee sold 55,005 shares of Reddit stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $221.21, for a total transaction of $12,167,656.05. Following the completion of the sale, the insider directly owned 62,608 shares in the company, valued at $13,849,515.68. This trade represents a 46.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 15th. The shares were sold at an average price of $200.53, for a total transaction of $3,609,540.00. Following the completion of the sale, the chief executive officer directly owned 494,104 shares in the company, valued at $99,082,675.12. This trade represents a 3.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 465,333 shares of company stock worth $97,652,064. 34.25% of the stock is owned by corporate insiders.

Reddit Stock Up 3.7%

RDDT stock opened at $253.07 on Wednesday. Reddit Inc. has a 52-week low of $79.75 and a 52-week high of $282.95. The stock has a market cap of $47.96 billion, a price-to-earnings ratio of 145.44, a price-to-earnings-growth ratio of 1.64 and a beta of 2.17. The business has a fifty day moving average of $215.64 and a two-hundred day moving average of $205.42.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.30. The business had revenue of $584.91 million during the quarter, compared to analysts’ expectations of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company’s revenue was up 67.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.16 EPS. As a group, sell-side analysts anticipate that Reddit Inc. will post 1.12 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Royal Bank Of Canada restated a “sector perform” rating on shares of Reddit in a research report on Wednesday, October 1st. Needham & Company LLC reissued a “buy” rating and set a $300.00 price objective on shares of Reddit in a research note on Monday, December 29th. Cannonball Research restated a “buy” rating on shares of Reddit in a report on Tuesday, September 23rd. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $236.00 target price on shares of Reddit in a research note on Tuesday, October 14th. Finally, Oppenheimer boosted their price target on shares of Reddit from $215.00 to $300.00 and gave the company an “outperform” rating in a research report on Tuesday, September 16th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and an average target price of $230.28.

About Reddit

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.