Vigilare Wealth Management has made a significant investment in Reddit Inc. (NYSE: RDDT), purchasing a stake valued at approximately $594,000. During the third quarter, the institutional investor acquired 2,584 shares of the company’s stock, according to Holdings Channel.com. This acquisition reflects growing interest from various institutional investors in the popular online platform.
In a broader context, several other large investors have also recently adjusted their positions in Reddit. For instance, Financial Perspectives Inc. entered the market by acquiring a new position valued at around $34,000 in the second quarter. Geneos Wealth Management Inc. notably increased its stake by 344.6% in the first quarter, bringing its total to 369 shares worth approximately $39,000 after acquiring an additional 286 shares. Similarly, Advisors Asset Management Inc. enhanced its position by 68.2%, now holding 365 shares valued at $55,000 following a recent purchase.
Other notable investments include Western Pacific Wealth Management LP, which acquired a stake worth about $60,000, and WPG Advisers LLC, which invested $74,000 in the first quarter. The overall trend indicates a robust interest in Reddit’s stock among institutional investors.
Insider Transactions and Stock Performance
In related developments, significant insider trading activity has occurred recently. Chief Technology Officer Christopher Brian Slowe sold 24,000 shares on November 24, 2023, at an average price of $192.72, amounting to a total transaction value of $4,625,280. Following this sale, Slowe retained 175,694 shares, now valued at approximately $33,859,747.68, marking a 12.02% decrease in his ownership.
Moreover, CEO Steve Ladd Huffman sold 18,000 shares on September 30, 2023, for $4,123,800. Post-sale, Huffman owns 494,104 shares, valued at $113,199,226.40, representing a 3.51% decline in his stake. Over the last quarter, insiders have sold a total of 387,619 shares worth approximately $81,040,938. Corporate insiders currently hold 34.25% of the company’s stock.
Reddit’s financial performance remains strong. The company announced its quarterly earnings on October 30, 2023, reporting earnings per share of $0.80, surpassing analysts’ consensus estimates of $0.50 by $0.30. The firm generated revenue of $584.91 million, exceeding expectations of $546.65 million. Compared to the same quarter last year, Reddit’s revenue increased by 67.9%.
Analyst Ratings and Future Outlook
Looking ahead, analysts predict that Reddit Inc. will achieve an earnings per share of $1.12 for the current fiscal year. Several equities research analysts have recently issued reports on Reddit’s shares. On October 1, 2023, the Royal Bank of Canada reaffirmed a “sector perform” rating. Morgan Stanley maintained an “overweight” rating, setting a price target of $250.00 on October 31, 2023.
Additionally, Argus initiated coverage with a “buy” rating and a price objective of $250.00, while Robert W. Baird increased their price target from $177.00 to $240.00. Meanwhile, Sanford C. Bernstein raised their target from $190.00 to $210.00, assigning a “market perform” rating.
Overall, the consensus rating for Reddit’s stock stands at “Moderate Buy” with an average target price of $230.28. Investors and analysts alike are closely monitoring Reddit’s performance as it navigates a rapidly evolving digital landscape.
Founded in 2005 and headquartered in San Francisco, California, Reddit Inc. operates a platform that facilitates digital communities centered on specific interests, allowing users to engage through conversations, share experiences, and upload multimedia content. The company’s innovative approach continues to attract investor interest and foster growth in the competitive social media arena.
