Avantax Advisory Services Inc. Makes New Investment in Reddit Inc. (NYSE:RDDT)

Key Points

• Avantax Advisory Services Inc. acquired 2,176 shares of Reddit Inc. for approximately $228,000, indicating growing interest among institutional investors.
• Insiders, including the CTO and CAO, recently sold significant shares of Reddit stock, indicating a 6.22% decrease and 9.24% decrease in their ownership respectively.
• Analysts have mixed ratings on Reddit's stock, with a consensus target price of $168.43, reflecting a range of buy, hold, and sell recommendations.

Avantax Advisory Services Inc. acquired a new position in Reddit Inc. (NYSE:RDDT - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 2,176 shares of the company's stock, valued at approximately $228,000.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Signaturefd LLC grew its position in shares of Reddit by 3.5% during the 1st quarter. Signaturefd LLC now owns 2,859 shares of the company's stock valued at $300,000 after purchasing an additional 97 shares in the last quarter. CWM LLC grew its position in shares of Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares in the last quarter. Scotia Capital Inc. grew its position in shares of Reddit by 5.5% during the 4th quarter. Scotia Capital Inc. now owns 3,500 shares of the company's stock valued at $572,000 after purchasing an additional 182 shares in the last quarter. Morling Financial Advisors LLC grew its position in shares of Reddit by 3.8% during the 1st quarter. Morling Financial Advisors LLC now owns 5,487 shares of the company's stock valued at $576,000 after purchasing an additional 202 shares in the last quarter. Finally, Wedbush Securities Inc. grew its position in shares of Reddit by 10.3% during the 1st quarter. Wedbush Securities Inc. now owns 2,487 shares of the company's stock valued at $261,000 after purchasing an additional 233 shares in the last quarter.

Reddit Stock Performance

NYSE:RDDT traded up $7.20 during midday trading on Thursday, reaching $241.97. 6,002,406 shares of the stock traded hands, compared to its average volume of 7,902,561. The company has a fifty day moving average of $153.89 and a 200 day moving average of $140.65. Reddit Inc. has a 12 month low of $52.39 and a 12 month high of $244.85. The stock has a market capitalization of $45.29 billion, a P/E ratio of 219.65, a PEG ratio of 3.55 and a beta of 2.30.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.25. The business had revenue of $499.63 million for the quarter, compared to analysts' expectations of $424.07 million. Reddit had a net margin of 12.97% and a return on equity of 9.93%. The firm's revenue for the quarter was up 77.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.06) earnings per share. On average, analysts predict that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have recently commented on RDDT shares. Bank of America boosted their price target on shares of Reddit from $130.00 to $150.00 and gave the company a "neutral" rating in a research report on Wednesday, July 30th. Citigroup raised their price objective on shares of Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research report on Tuesday, June 24th. JPMorgan Chase & Co. raised their price objective on shares of Reddit from $145.00 to $190.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Wolfe Research upgraded shares of Reddit to an "outperform" rating in a research report on Sunday, August 3rd. Finally, Seaport Res Ptn upgraded shares of Reddit from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 5th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $168.43.

Insider Activity at Reddit

In related news, CTO Christopher Brian Slowe sold 16,000 shares of Reddit stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $145.58, for a total value of $2,329,280.00. Following the sale, the chief technology officer owned 241,373 shares in the company, valued at $35,139,081.34. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Steve Ladd Huffman sold 14,000 shares of Reddit stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $202.70, for a total transaction of $2,837,800.00. Following the completion of the sale, the chief executive officer owned 539,631 shares in the company, valued at approximately $109,383,203.70. This trade represents a 2.53% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 385,901 shares of company stock worth $49,577,413. 34.25% of the stock is currently owned by insiders.

Reddit Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.