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Baillie Gifford & Co. Takes $78.68 Million Position in Reddit Inc. (NYSE:RDDT)

Reddit logo with Computer and Technology background

Key Points

  • Baillie Gifford & Co. acquired 750,000 shares of Reddit Inc. (NYSE:RDDT) during the first quarter, worth approximately $78.7 million, representing around 0.41% of the company's stock.
  • A variety of large investors have increased their stakes in Reddit, with Cetera Investment Advisers raising its position by 156.4%, indicating growing interest in the company among institutional investors.
  • Analysts seem optimistic about Reddit's stock, with multiple firms giving it a buy rating and average target price of $144.13, despite varying opinions on potential rescaling of target prices.
  • MarketBeat previews top five stocks to own in September.

Baillie Gifford & Co. purchased a new position in Reddit Inc. (NYSE:RDDT - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 750,000 shares of the company's stock, valued at approximately $78,675,000. Baillie Gifford & Co. owned about 0.41% of Reddit at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Tucker Asset Management LLC bought a new stake in Reddit in the 4th quarter worth approximately $39,000. CWM LLC grew its stake in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after purchasing an additional 128 shares during the period. Fourth Dimension Wealth LLC purchased a new stake in Reddit in the fourth quarter worth $49,000. Chelsea Counsel Co. purchased a new stake in Reddit in the fourth quarter worth $49,000. Finally, Quarry LP bought a new stake in Reddit in the fourth quarter worth $59,000.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on RDDT. JPMorgan Chase & Co. lowered their price target on Reddit from $185.00 to $110.00 and set a "neutral" rating on the stock in a report on Tuesday, April 8th. Truist Financial initiated coverage on Reddit in a report on Monday, April 7th. They issued a "buy" rating and a $150.00 target price on the stock. Bank of America increased their target price on Reddit from $130.00 to $150.00 and gave the company a "neutral" rating in a report on Wednesday. Wall Street Zen upgraded Reddit from a "hold" rating to a "buy" rating in a research report on Saturday, June 14th. Finally, Roth Mkm upped their price target on Reddit from $120.00 to $130.00 and gave the stock a "neutral" rating in a research report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $144.75.

View Our Latest Report on RDDT

Insider Transactions at Reddit

In other Reddit news, CFO Andrew Vollero sold 30,000 shares of the firm's stock in a transaction on Friday, June 13th. The stock was sold at an average price of $117.64, for a total transaction of $3,529,200.00. Following the transaction, the chief financial officer directly owned 333,806 shares in the company, valued at $39,268,937.84. This trade represents a 8.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CTO Christopher Brian Slowe sold 26,000 shares of the firm's stock in a transaction on Thursday, May 22nd. The stock was sold at an average price of $98.43, for a total value of $2,559,180.00. Following the transaction, the chief technology officer owned 251,373 shares in the company, valued at $24,742,644.39. The trade was a 9.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 506,809 shares of company stock valued at $61,884,325. Company insiders own 34.25% of the company's stock.

Reddit Trading Up 1.7%

Shares of RDDT stock traded up $2.49 on Wednesday, reaching $147.34. 1,427,545 shares of the company's stock were exchanged, compared to its average volume of 7,671,740. The company's fifty day simple moving average is $132.89 and its 200 day simple moving average is $138.46. The stock has a market capitalization of $27.19 billion, a PE ratio of 249.40, a P/E/G ratio of 3.89 and a beta of 2.33. Reddit Inc. has a 52 week low of $49.13 and a 52 week high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, May 1st. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.02 by $0.11. The company had revenue of $392.36 million for the quarter, compared to the consensus estimate of $370.55 million. Reddit had a return on equity of 5.69% and a net margin of 8.07%. Reddit's quarterly revenue was up 61.5% on a year-over-year basis. During the same period last year, the business posted ($8.19) EPS. As a group, sell-side analysts predict that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

About Reddit

(Free Report)

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.

See Also

Institutional Ownership by Quarter for Reddit (NYSE:RDDT)

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