Shares of Reddit (NYSE:RDDT) are continuing their hot streak and are up by over 10% today. RDDT stock has now almost doubled from its initial public offering (IPO) price of $34. The company was able to raise gross proceeds of $631.60 million from the sale of 23.50 million shares.
This morning, Reddit received its first analyst rating from New Street Research. New Street analyst Dan Salmon provided a price target of $54 and a “neutral” rating. Salmon ranks at #378 among 8,761 Wall Street analysts on TipRanks.
While Salmon’s price target is below Reddit’s current price, the analyst leans bullish. He also expects elevated volatility in RDDT before its first earnings report and three days after the lockup period expiration. Reddit’s insiders are eligible to sell shares 180 days after the IPO.
Salmon expects 2024 revenue of $1.16 billion, implying a year-over-year growth rate of 44% from 2023’s revenue of $804 million. For 2025, he expects growth of 34% to $1.55 billion.
5 Investors Betting Big on RDDT Stock
In Reddit’s Form S-1 registration statement, the company revealed its top shareholders. While CEO and co-founder Steve Huffman didn’t make the top five shareholders cut, he still owns a significant position of 368,954 Class A shares and 4.31 million Class B shares, which is equivalent to a 3.3% ownership stake. Each Class B share holds 10 votes and is convertible to one share of Class A at any time.
Let’s take a look at Reddit’s top shareholders:
- Advance Magazine Publishers owns 16,182 Class A shares and 42.19 million Class B shares, equivalent to a 30.1% ownership stake.
- Tencent (OTCMKTS:TCEHY) and its affiliated entities own 1.12 million Class A shares and 14.32 million Class B shares, equivalent to an 11% ownership stake.
- OpenAI CEO Sam Altman and his affiliated entities own 789,457 Class A shares and 11.36 million Class B shares, equivalent to an 8.7% ownership stake.
- FMR owns 11.74 million Class B shares, equivalent to an 8.4% ownership stake.
- Quiet Capital, Tacit Capital and their affiliated entities own 2.97 million Class A shares and 6.61 million Class B shares, equivalent to a 6.8% ownership stake.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
