Burkehill Global Management LP Takes Position in Reddit Inc. (NYSE:RDDT)

Key Points

• Burkehill Global Management LP acquired 150,000 shares of Reddit Inc. (NYSE: RDDT) valued at approximately $15.7 million, making it the 26th largest position in their portfolio.
• Reddit reported a quarterly earnings per share (EPS) of $0.45, significantly exceeding the consensus estimate of $0.20, with a revenue increase of 77.9% year-over-year.
• Several hedge funds, including JPMorgan Chase & Co. and Invesco Ltd., have increased their stakes in Reddit, reflecting growing institutional interest.

Burkehill Global Management LP purchased a new stake in Reddit Inc. (NYSE:RDDT - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 150,000 shares of the company's stock, valued at approximately $15,735,000. Reddit comprises approximately 1.2% of Burkehill Global Management LP's portfolio, making the stock its 26th largest holding. Burkehill Global Management LP owned 0.08% of Reddit as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently modified their holdings of the company. Signaturefd LLC lifted its holdings in Reddit by 3.5% in the first quarter. Signaturefd LLC now owns 2,859 shares of the company's stock valued at $300,000 after buying an additional 97 shares during the period. CWM LLC lifted its holdings in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after buying an additional 128 shares during the period. Scotia Capital Inc. lifted its holdings in Reddit by 5.5% in the fourth quarter. Scotia Capital Inc. now owns 3,500 shares of the company's stock valued at $572,000 after buying an additional 182 shares during the period. Morling Financial Advisors LLC raised its holdings in shares of Reddit by 3.8% during the first 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 during the period. Finally, Wedbush Securities Inc. raised its holdings in shares of Reddit by 10.3% during the first quarter. Wedbush Securities Inc. now owns 2,487 shares of the company's stock valued at $261,000 after purchasing an additional 233 shares during the period.

Insider Activity at Reddit

In other Reddit news, COO Jennifer L. Wong sold 33,334 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $142.06, for a total transaction of $4,735,428.04. Following the completion of the sale, the chief operating officer directly owned 1,428,007 shares of the company's stock, valued at approximately $202,862,674.42. This represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Andrew Vollero sold 30,000 shares of the company'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 owned 333,806 shares of the company's stock, valued at approximately $39,268,937.84. This represents a 8.25% decrease in their position. The disclosure for this sale can be found here. Insiders sold 510,309 shares of company stock valued at $63,881,845 over the last ninety days. Company insiders own 34.25% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on RDDT shares. Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. Needham & Company LLC upped their target price on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Citigroup upped their target price on shares of Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a report on Tuesday, June 24th. Oppenheimer assumed coverage on shares of Reddit in a report on Wednesday, April 16th. They issued an "outperform" rating and a $125.00 target price on the stock. Finally, Morgan Stanley upped their target price on shares of Reddit from $170.00 to $230.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. One 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 company. According to data from MarketBeat.com, Reddit presently has an average rating of "Moderate Buy" and an average price target of $168.43.

Reddit Trading Up 1.9%

Shares of RDDT stock traded up $4.27 during mid-day trading on Wednesday, reaching $228.29. The stock had a trading volume of 1,318,795 shares, compared to its average volume of 7,871,760. The stock's 50-day moving average price is $151.55 and its two-hundred day moving average price is $140.00. The firm has a market capitalization of $42.73 billion, a PE ratio of 207.53, a price-to-earnings-growth ratio of 3.50 and a beta of 2.30. Reddit Inc. has a 52-week low of $52.39 and a 52-week high of $230.41.

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

Reddit Company 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.