Reddit Inc. (NYSE:RDDT) Shares Acquired by Entropy Technologies LP

Key Points

• Entropy Technologies LP significantly increased its holdings in Reddit Inc. by 783.5%, acquiring 23,137 additional shares in the first quarter, bringing its total to 26,090 shares valued at approximately $2.7 million.
• Coinciding with this investment activity, several large investors, including Vanguard Group Inc. and JPMorgan Chase & Co., also raised their positions in Reddit during the same period.
• Reddit reported earnings of $0.45 per share for the last quarter, notably outperforming analyst expectations and showing a 77.9% increase in revenue year-over-year.

Entropy Technologies LP boosted its position in Reddit Inc. (NYSE:RDDT - Free Report) by 783.5% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 26,090 shares of the company's stock after purchasing an additional 23,137 shares during the quarter. Entropy Technologies LP's holdings in Reddit were worth $2,737,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Invesco Ltd. lifted its holdings in Reddit by 28.8% in the 1st quarter. Invesco Ltd. now owns 930,173 shares of the company's stock valued at $97,575,000 after purchasing an additional 208,215 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in Reddit by 98.2% in the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after purchasing an additional 944,847 shares in the last quarter. Forsta AP Fonden purchased a new position in Reddit during the first quarter worth approximately $1,445,000. Swiss National Bank lifted its position in Reddit by 67.4% during the first quarter. Swiss National Bank now owns 186,300 shares of the company's stock worth $19,543,000 after buying an additional 75,000 shares in the last quarter. Finally, Caisse Des Depots ET Consignations purchased a new position in Reddit during the first quarter worth approximately $1,348,000.

Insiders Place Their Bets

In other news, CEO Steve Ladd Huffman sold 124,409 shares of the stock in a transaction dated Monday, June 16th. The stock was 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 in the company, valued at approximately $67,966,251.85. This represents a 18.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CTO Christopher Brian Slowe sold 26,000 shares of the company's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $98.43, for a total value of $2,559,180.00. Following the completion of the sale, the chief technology officer directly owned 251,373 shares of the company's stock, valued at approximately $24,742,644.39. This trade represents a 9.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 510,309 shares of company stock worth $63,881,845. Insiders own 34.25% of the company's stock.

Reddit Price Performance

Shares of RDDT traded up $3.01 during mid-day trading on Wednesday, reaching $227.03. The company's stock had a trading volume of 826,895 shares, compared to its average volume of 7,869,471. Reddit Inc. has a 12-month low of $52.39 and a 12-month high of $230.41. The stock has a market cap of $42.49 billion, a PE ratio of 204.83, a price-to-earnings-growth ratio of 3.50 and a beta of 2.30. The company's 50 day moving average is $151.55 and its 200 day moving average is $140.00.

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

Analysts Set New Price Targets

A number of brokerages recently commented on RDDT. Wells Fargo & Company lifted their price objective on Reddit from $115.00 to $118.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 1st. Wolfe Research upgraded Reddit to an "outperform" rating in a research report on Sunday, August 3rd. Roth Capital lifted their price objective on Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a research report on Monday, July 21st. Citigroup lifted their price objective on Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research report on Tuesday, June 24th. Finally, JPMorgan Chase & Co. lifted their price objective on Reddit from $145.00 to $190.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $168.43.

Reddit 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.