HighTower Advisors LLC Has $20.20 Million Holdings in Reddit Inc. $RDDT

Key Points

• HighTower Advisors LLC boosted its Reddit stake by 452% in the fourth quarter, ending with 87,863 shares valued at about $20.2 million.
• Several other major institutional investors also increased their Reddit holdings, including Vanguard, Invesco, and State Street, signaling broad institutional interest in the stock.
• Reddit recently reported better-than-expected quarterly results, with EPS of $1.01 and revenue of $663.4 million, while analysts currently rate the stock a Moderate Buy with a consensus target price of $228.61.

HighTower Advisors LLC raised its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 452.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 87,863 shares of the company's stock after acquiring an additional 71,945 shares during the quarter. HighTower Advisors LLC's holdings in Reddit were worth $20,197,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in RDDT. Vanguard Group Inc. increased its position in Reddit by 12.9% in the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock valued at $2,814,734,000 after acquiring an additional 1,401,293 shares in the last quarter. Invesco Ltd. increased its position in Reddit by 419.0% in the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after acquiring an additional 1,201,237 shares in the last quarter. State Street Corp increased its position in Reddit by 138.5% in the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after acquiring an additional 1,178,890 shares in the last quarter. Federated Hermes Inc. acquired a new stake in Reddit in the 3rd quarter valued at about $165,246,000. Finally, AQR Capital Management LLC acquired a new stake in Reddit in the 2nd quarter valued at about $80,052,000.

Insider Activity

In other news, CTO Christopher Brian Slowe sold 19,036 shares of the firm's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $144.05, for a total value of $2,742,135.80. Following the transaction, the chief technology officer owned 185,057 shares of the company's stock, valued at approximately $26,657,460.85. This trade represents a 9.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the transaction, the chief operating officer directly owned 1,088,451 shares in the company, valued at $175,752,182.97. The trade was 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 quarter, insiders have sold 326,144 shares of company stock valued at $48,788,412. 34.25% of the stock is currently owned by insiders.

Analyst Ratings Changes

RDDT has been the subject of several research reports. Needham & Company LLC restated a "buy" rating and issued a $300.00 price objective on shares of Reddit in a research report on Friday, May 1st. Rothschild & Co Redburn set a $110.00 price objective on shares of Reddit in a research report on Monday, April 27th. Piper Sandler restated an "overweight" rating and issued a $215.00 price objective (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Guggenheim raised their price objective on shares of Reddit from $245.00 to $255.00 and gave the company a "buy" rating in a research report on Friday, February 6th. Finally, Jefferies Financial Group reduced their target price on shares of Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a research note on Tuesday, March 10th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, Reddit currently has a consensus rating of "Moderate Buy" and a consensus target price of $228.61.

Reddit Trading Down 5.4%

Shares of NYSE RDDT opened at $141.87 on Friday. The firm has a market capitalization of $27.31 billion, a PE ratio of 40.53 and a beta of 1.85. Reddit Inc. has a 1 year low of $95.23 and a 1 year high of $282.95. The firm's 50-day moving average is $147.67 and its 200-day moving average is $179.50.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company's revenue for the quarter was up 69.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.13 EPS. As a group, equities research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

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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