Blackhawk Capital Partners LLC Buys New Shares in Reddit Inc. $RDDT

Key Points

• Blackhawk Capital Partners acquired 10,716 Reddit shares worth approximately $1.86 million during the second quarter, while several other institutional investors also increased or initiated positions.
• Reddit reported a strong quarter, with earnings of $1.25 per share and revenue of $804.91 million, surpassing analyst expectations and marking 61% year-over-year revenue growth.
• Insiders sold 169,141 shares valued at roughly $28.46 million over the past three months. RDDT opened at $153.46, while analysts maintained a “Moderate Buy” consensus with an average price target of $220.90.

Blackhawk Capital Partners LLC purchased a new stake in Reddit Inc. (NYSE:RDDT - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 10,716 shares of the company's stock, valued at approximately $1,860,000.

Several other hedge funds and other institutional investors have also made changes to their positions in RDDT. Sunbelt Securities Inc. raised its holdings in Reddit by 87.5% in the first 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 acquired a new position in Reddit during the 1st quarter worth approximately $30,000. LOM Asset Management Ltd purchased a new stake in shares of Reddit in the 4th quarter valued at approximately $33,000. Beacon Investment Advisory Services Inc. purchased a new stake in shares of Reddit in the 2nd quarter valued at approximately $35,000. Finally, Geneos Wealth Management Inc. raised its holdings in shares of Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $178.26, for a total transaction of $3,208,680.00. Following the completion of the sale, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,636,083.64. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the sale, the chief operating officer owned 1,088,451 shares of the company's stock, valued at $172,541,252.52. This trade represents a 3.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 169,141 shares of company stock valued at $28,464,485. Insiders own 28.48% of the company's stock.

Reddit Trading Down 1.7%

RDDT stock opened at $153.46 on Thursday. The company has a market capitalization of $29.53 billion, a P/E ratio of 35.69, a PEG ratio of 0.52 and a beta of 2.03. The business has a 50 day simple moving average of $175.72 and a 200-day simple moving average of $160.12. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating analysts' consensus estimates of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business had revenue of $804.91 million for the quarter, compared to analysts' expectations of $731.00 million. During the same period in the previous year, the company posted $0.45 EPS. The company's quarterly revenue was up 61.0% on a year-over-year basis. Research analysts predict that Reddit Inc. will post 5.22 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on RDDT shares. Cantor Fitzgerald decreased their price objective on shares of Reddit from $200.00 to $170.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. JPMorgan Chase & Co. dropped their target price on Reddit from $200.00 to $185.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Jefferies Financial Group set a $250.00 price target on Reddit in a report on Friday, July 10th. Rothschild & Co Redburn set a $110.00 price objective on Reddit in a research report on Monday, April 27th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat.com, Reddit currently has an average rating of "Moderate Buy" and an average price target of $220.90.

Reddit Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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