Blue Jean Financial LLC Invests $3.14 Million in Reddit Inc. $RDDT

Key Points

• Blue Jean Financial LLC opened a new position in Reddit in Q4, buying 13,647 shares worth about $3.14 million. The stake represents about 2.5% of its portfolio and is now its fourth-largest holding.
• Several other hedge funds also initiated small positions in Reddit, while Wall Street remains broadly positive: analysts have a Moderate Buy consensus with an average price target of $230.75.
• Reddit insiders were active sellers recently, including CEO Steve Huffman and CTO Christopher Slowe. The company also beat its latest quarterly earnings and revenue estimates, with revenue rising 69.1% year over year.

Blue Jean Financial LLC acquired a new position in shares of Reddit Inc. (NYSE:RDDT - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 13,647 shares of the company's stock, valued at approximately $3,137,000. Reddit comprises approximately 2.5% of Blue Jean Financial LLC's portfolio, making the stock its 4th biggest holding.

Other hedge funds also recently made changes to their positions in the company. Raiffeisen Bank International AG bought a new position in shares of Reddit during the third quarter worth about $25,000. GW&K Investment Management LLC bought a new position in shares of Reddit during the third quarter worth about $30,000. LOM Asset Management Ltd bought a new position in shares of Reddit during the fourth quarter worth about $33,000. Noble Wealth Management PBC bought a new position in shares of Reddit during the fourth quarter worth about $34,000. Finally, Geneos Wealth Management Inc. raised its position in shares of Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares during the last quarter.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on RDDT shares. Wells Fargo & Company raised their price objective on Reddit from $149.00 to $176.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Piper Sandler restated an "overweight" rating and set a $215.00 price objective (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Citigroup reiterated a "market outperform" rating on shares of Reddit in a report on Tuesday, May 26th. Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a report on Friday, May 8th. Finally, Jefferies Financial Group lowered their target price on Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a report on Tuesday, March 10th. Eighteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $230.75.

Insider Activity

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $174.13, for a total transaction of $3,134,340.00. Following the completion of the sale, the chief executive officer owned 373,814 shares in the company, valued at $65,092,231.82. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the business's stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the sale, the chief technology officer owned 38,413 shares of the company's stock, valued at approximately $5,787,686.71. This represents a 28.75% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 232,499 shares of company stock worth $36,123,803 over the last quarter. 28.48% of the stock is currently owned by corporate insiders.

Reddit Stock Performance

Shares of RDDT stock opened at $162.11 on Friday. The company has a market cap of $31.21 billion, a P/E ratio of 46.32 and a beta of 1.91. The stock has a 50 day simple moving average of $157.38 and a two-hundred day simple moving average of $176.88. Reddit Inc. has a fifty-two week low of $112.30 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.39. The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The firm's revenue for the quarter was up 69.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.13 earnings per share. On average, research analysts predict that Reddit Inc. will post 4.83 earnings per share for the current year.

About Reddit

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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