Vigilare Wealth Management has taken a significant step by acquiring a new stake in Reddit Inc. (NYSE: RDDT) during the third quarter of 2023. The investment firm purchased 2,584 shares, valued at approximately $594,000, according to data from Holdings Channel. This move reflects growing interest from institutional investors in the social media platform, known for its community-driven content.
Other substantial investors have also recently made changes to their positions in Reddit. Financial Perspectives Inc. acquired shares valued at around $34,000 during the second quarter, while Geneos Wealth Management Inc. increased its stake by an impressive 344.6% in the same period. This brought its total shares to 369, valued at roughly $39,000. Additionally, Advisors Asset Management Inc. raised its position by 68.2%, owning 365 shares now worth $55,000. Other notable transactions include a new stake from Western Pacific Wealth Management LP valued at about $60,000 and a position acquired by WPG Advisers LLC worth $74,000.
Insider Transactions Highlight Market Activity
In related news, significant insider transactions have drawn attention. On November 24, 2023, Christopher Brian Slowe, the Chief Technology Officer of Reddit, sold 24,000 shares at an average price of $192.72, amounting to a total of $4,625,280. Post-sale, Slowe retains ownership of 175,694 shares, valued at approximately $33.86 million, indicating a 12.02% decrease in his stake.
Additionally, Steve Ladd Huffman, the Chief Executive Officer, sold 18,000 shares on September 30, 2023, for a total of $4,123,800. Following this transaction, Huffman holds 494,104 shares worth around $113.20 million, reflecting a 3.51% reduction in his ownership.
Over the last quarter, insiders sold a cumulative total of 387,619 shares, valued at approximately $81.04 million. Currently, corporate insiders own 34.25% of Reddit’s stock.
Reddit’s Financial Performance and Analyst Ratings
Reddit reported its quarterly earnings on October 30, 2023, revealing earnings per share of $0.80, surpassing analysts’ expectations of $0.50 by $0.30. The company’s revenue for the quarter reached $584.91 million, exceeding the anticipated $546.65 million. Reddit’s net margin stood at 18.33%, with a return on equity of 14.94%. This marks a notable 67.9% increase in revenue compared to the previous year, when the company reported earnings per share of $0.16.
Wall Street analysts project that Reddit will post earnings per share of $1.12 for the current fiscal year, indicating optimistic growth expectations.
Several analysts have provided insights into Reddit’s stock performance. Royal Bank of Canada reaffirmed a “sector perform” rating, while Morgan Stanley maintained an “overweight” rating with a price target of $250.00. Argus initiated coverage with a “buy” rating and a price objective of $250.00. Other firms, including Robert W. Baird and Sanford C. Bernstein, have adjusted their price targets, indicating a consensus rating of “Moderate Buy” with an average target price of $230.28.
Founded in 2005 and headquartered in San Francisco, California, Reddit operates a platform that connects users through various digital communities. These communities facilitate discussions, content sharing, and engagement among users with similar interests.
For those interested in monitoring further developments regarding Reddit and its stakeholders, HoldingsChannel.com provides the latest 13F filings and insider trading insights.
