Long Walk Management LP Increases Stake in Reddit, Inc.

Long Walk Management LP has increased its position in Reddit, Inc. (NYSE:RDDT) by 28.3% during the third quarter, as reported in the latest 13F filing with the SEC. After acquiring an additional 157,500 shares during this period, the fund now holds 715,000 shares, making Reddit 19.5% of its investment portfolio and its largest holding. As of the end of the last quarter, Long Walk Management LP’s stake in Reddit is valued at approximately $47.13 million.

Recent Activity by Other Funds

Several other hedge funds have also made adjustments to their holdings of Reddit. Proficio Capital Partners LLC acquired a new stake valued at $382,000. Similarly, Objective Capital Management LLC purchased shares worth about $391,000, and SpiderRock Advisors LLC increased its position with a new stake valued at around $3.49 million. In addition, ARK Investment Management LLC enhanced its stake by 120.5%, now holding 352,721 shares worth approximately $23.25 million after acquiring 192,785 additional shares. Concurrent Investment Advisors LLC also entered a new position in Reddit valued at about $372,000.

Insider Trading Updates

In other news related to Reddit, Director Mary Porter Gale sold 5,000 shares on November 1st, at an average price of $114.40, totaling $572,000. Following the sale, Gale holds 46,459 shares valued at approximately $5.31 million, representing a negligible decrease in her ownership. This transaction was disclosed in a filing with the SEC. Furthermore, Chief Technology Officer Christopher Brian Slowe sold 21,000 shares on August 20th, at an average price of $53.99, resulting in total proceeds of $1.13 million. Post-sale, Slowe retains 339,295 shares valued at around $18.32 million.

Market Analysts' Outlook

Analysts have expressed optimistic views on Reddit's future. Piper Sandler reaffirmed an "overweight" rating and raised its price target from $70.00 to $115.00 in a report dated October 30th. Bank of America increased its target from $84.00 to $99.00 and assigned a "neutral" rating, while Loop Capital raised its price objective from $80.00 to $90.00, recommending a "buy". Additionally, Citigroup adjusted its target price from $70.00 to $120.00 with a "buy" recommendation. Overall, one analyst rates the stock as a sell, six recommend holding, eleven advocate buying, and one has a strong buy rating. The consensus rating for Reddit stands at "Moderate Buy" with an average price target of $89.72.

Reddit's Recent Performance

Reddit shares rose by 2.6% recently, opening at $134.80. The company has experienced notable fluctuations in its stock price, with a 52-week low of $37.35 and a high of $134.80. Its fifty-day moving average is $76.67, while the 200-day moving average is $65.00.

The last earnings report for Reddit was released on October 29th, revealing an earnings per share (EPS) of $0.16, exceeding the analysts' consensus estimate of a loss of $0.07 by a significant margin. The company reported revenues of $348.40 million for the quarter, surpassing expectations of $313.61 million, and showcasing a 67.9% increase year-over-year. Analysts project Reddit will post earnings per share of -3.63 in the current fiscal year.

About Reddit, Inc.

Reddit, Inc. operates an online platform that hosts various digital communities centered around specific interests, facilitating user engagement through conversation, link sharing, and multimedia uploads. Founded in 2005, it is headquartered in San Francisco, California.

Concluding Thoughts

As Reddit continues to capture attention in the stock market, investors and analysts alike keep a close eye on its performance, recognizing its potential for growth amidst fluctuating market conditions.

Reddit, Investment, Stocks