Allianz Asset Management GmbH Makes New Investment in Reddit Inc. $RDDT

Key Points

• Allianz Asset Management purchased 8,586 Reddit shares during the second quarter, representing an investment of approximately $1.49 million. Several other smaller institutional investors also increased or initiated positions.
• Analysts maintain a generally positive view of Reddit, with a consensus rating of “Moderate Buy” and an average price target of $221.10, although Morgan Stanley and JPMorgan recently lowered their targets.
• Reddit reported strong quarterly results, including $1.25 in EPS versus the $0.95 consensus estimate and $804.91 million in revenue, up 61% year over year. However, company insiders sold more than 210,000 shares worth approximately $36.4 million over the past 90 days.

Allianz Asset Management GmbH bought a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 8,586 shares of the company's stock, valued at approximately $1,490,000.

Other large investors have also modified their holdings of the company. Sunbelt Securities Inc. boosted its position in Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after acquiring an additional 91 shares in the last quarter. Ascentis Independent Advisors bought a new stake in Reddit during the first quarter valued at about $30,000. EverSource Wealth Advisors LLC boosted its position in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock valued at $34,000 after purchasing an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. purchased a new position in Reddit in the second quarter valued at about $35,000. Finally, Geneos Wealth Management Inc. grew its stake in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares during the last quarter.

Analyst Upgrades and Downgrades

RDDT has been the subject of several analyst reports. Evercore reissued an "outperform" rating and set a $265.00 price target on shares of Reddit in a research report on Friday, July 31st. Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price objective on shares of Reddit in a research report on Wednesday, June 24th. Citigroup reiterated a "market outperform" rating on shares of Reddit in a research note on Monday, August 24th. Morgan Stanley decreased their target price on shares of Reddit from $240.00 to $210.00 and set an "overweight" rating for the company in a research report on Friday, August 21st. Finally, JPMorgan Chase & Co. decreased their target price on shares of Reddit from $200.00 to $185.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $221.10.

Reddit Stock Performance

Shares of RDDT stock opened at $146.80 on Thursday. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The firm has a market capitalization of $28.25 billion, a price-to-earnings ratio of 34.14, a PEG ratio of 0.69 and a beta of 2.02. The stock's 50-day simple moving average is $168.67 and its 200-day simple moving average is $159.06.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.95 by $0.30. The firm had revenue of $804.91 million during the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. Reddit's revenue was up 61.0% on a year-over-year basis. During the same period last year, the firm posted $0.45 EPS. As a group, equities analysts forecast that Reddit Inc. will post 5.27 earnings per share for the current year.

Insider Activity at Reddit

In other Reddit news, CEO Steve Huffman sold 18,000 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $64,718,417.82. This represents a 4.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer Wong sold 75,000 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares of the company's stock, valued at approximately $187,538,028.45. This represents a 6.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 210,102 shares of company stock worth $36,375,252. 28.48% of the stock is owned by company insiders.

Reddit Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.

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