Deutsche Bank AG Purchases 204,030 Shares of Reddit Inc. (NYSE:RDDT)

Key Points

• Deutsche Bank AG has increased its position in Reddit Inc. by 47.8%, owning 631,135 shares after purchasing an additional 204,030 shares during the 1st quarter.
• Reddit's earnings exceeded analysts' expectations, reporting $0.45 earnings per share for the quarter, up from a loss of $0.06 per share in the same quarter last year, with revenue climbing 77.9% year-over-year.
• Several hedge funds, including Vanguard Group Inc. and Cresset Asset Management LLC, also increased their stakes in Reddit, reflecting growing institutional interest in the company's stock.

Deutsche Bank AG increased its position in Reddit Inc. (NYSE:RDDT - Free Report) by 47.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 631,135 shares of the company's stock after purchasing an additional 204,030 shares during the quarter. Deutsche Bank AG owned approximately 0.35% of Reddit worth $66,206,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Reddit by 11.1% during the 1st quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock valued at $1,069,828,000 after acquiring an additional 1,017,162 shares in the last quarter. Lord Abbett & CO. LLC boosted its position in Reddit by 12.8% during the 4th quarter. Lord Abbett & CO. LLC now owns 1,861,998 shares of the company's stock valued at $304,325,000 after acquiring an additional 211,636 shares in the last quarter. Cresset Asset Management LLC boosted its position in Reddit by 159.6% during the 4th quarter. Cresset Asset Management LLC now owns 1,308,797 shares of the company's stock valued at $213,910,000 after acquiring an additional 804,591 shares in the last quarter. Whale Rock Capital Management LLC bought a new stake in Reddit during the 4th quarter valued at $204,054,000. Finally, Voya Investment Management LLC bought a new stake in Reddit during the 4th quarter valued at $157,984,000.

Reddit Stock Performance

NYSE RDDT opened at $220.79 on Tuesday. The stock has a 50-day simple moving average of $149.30 and a two-hundred day simple moving average of $139.41. The firm has a market capitalization of $41.32 billion, a P/E ratio of 200.72, a PEG ratio of 3.42 and a beta of 2.30. Reddit Inc. has a fifty-two week low of $50.80 and a fifty-two week high of $230.41.

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

Insider Buying and Selling

In other Reddit news, CFO Andrew Vollero sold 30,000 shares of Reddit stock in a transaction dated 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 completion of the transaction, the chief financial officer owned 333,806 shares in the company, valued at approximately $39,268,937.84. This trade represents a 8.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Steve Ladd Huffman sold 124,409 shares of Reddit stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $124.45, for a total value of $15,482,700.05. Following the transaction, the chief executive officer owned 546,133 shares of the company's stock, valued at $67,966,251.85. The trade was a 18.55% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 510,309 shares of company stock worth $63,881,845. Corporate insiders own 34.25% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on RDDT. Raymond James Financial reaffirmed a "strong-buy" rating and set a $225.00 target price (up previously from $175.00) on shares of Reddit in a research report on Friday, August 1st. JMP Securities increased their target price on Reddit from $180.00 to $225.00 and gave the company a "market outperform" rating in a research report on Friday, August 1st. Roth Capital increased their target price on Reddit from $130.00 to $145.00 and gave the company a "neutral" rating in a research report on Monday, July 21st. Oppenheimer assumed coverage on Reddit in a research report on Wednesday, April 16th. They issued an "outperform" rating and a $125.00 price objective for the company. Finally, Loop Capital lowered their price objective on Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research report on Thursday, June 12th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $168.43.

About Reddit

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.

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