Hsbc Holdings PLC Acquires 152,417 Shares of Reddit Inc. $RDDT

Key Points

• Hsbc Holdings PLC has significantly increased its stake in Reddit Inc. by 2,660% during the first quarter, now owning 158,147 shares valued at approximately $16.55 million.
• Reddit's recent quarterly earnings showed an EPS of $0.45, surpassing analysts' expectations of $0.20, with revenues up 77.9% year-over-year.
• The stock analysts have mixed opinions on Reddit, with recent price targets varying from a high of $220.00 to a low of $130.00, reflecting a consensus "Moderate Buy" rating.

Hsbc Holdings PLC grew its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 2,660.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 158,147 shares of the company's stock after purchasing an additional 152,417 shares during the quarter. Hsbc Holdings PLC owned approximately 0.09% of Reddit worth $16,551,000 as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in the stock. Quantbot Technologies LP grew its holdings in shares of Reddit by 137.5% during the first quarter. Quantbot Technologies LP now owns 64,959 shares of the company's stock valued at $6,814,000 after purchasing an additional 37,609 shares during the last quarter. RWA Wealth Partners LLC bought a new position in shares of Reddit during the first quarter valued at approximately $408,000. Korea Investment CORP bought a new position in shares of Reddit during the first quarter valued at approximately $4,392,000. Northern Trust Corp grew its holdings in shares of Reddit by 10.8% during the first quarter. Northern Trust Corp now owns 296,086 shares of the company's stock valued at $31,059,000 after purchasing an additional 28,960 shares during the last quarter. Finally, Versor Investments LP bought a new position in shares of Reddit during the first quarter valued at approximately $231,000.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Needham & Company LLC upped their target price on Reddit from $165.00 to $215.00 and gave the company a "buy" rating in a report on Friday, August 1st. Morgan Stanley boosted their price objective on Reddit from $170.00 to $230.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Loop Capital reduced 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. Seaport Res Ptn upgraded Reddit from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 5th. Finally, Roth Capital boosted 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. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $175.38.

Insider Activity at Reddit

In other news, insider Benjamin Seong Lee sold 6,426 shares of the company's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $220.28, for a total value of $1,415,519.28. Following the transaction, the insider directly owned 83,445 shares of the company's stock, valued at approximately $18,381,264.60. This represents a 7.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Steve Ladd Huffman sold 14,000 shares of the company's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $244.70, for a total transaction of $3,425,800.00. Following the completion of the transaction, the chief executive officer directly owned 531,485 shares in the company, valued at $130,054,379.50. This trade represents a 2.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 482,777 shares of company stock worth $79,766,696. Insiders own 34.25% of the company's stock.

Reddit Stock Up 0.2%

RDDT traded up $0.36 during trading on Tuesday, reaching $220.09. The stock had a trading volume of 5,304,964 shares, compared to its average volume of 9,025,250. Reddit Inc. has a 1-year low of $55.02 and a 1-year high of $253.14. The stock has a 50 day moving average of $173.41 and a two-hundred day moving average of $141.61. The firm has a market capitalization of $41.19 billion, a price-to-earnings ratio of 200.08, a price-to-earnings-growth ratio of 3.48 and a beta of 2.30.

Reddit (NYSE:RDDT - Get Free Report) last announced 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 company had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. During the same quarter in the prior year, the firm earned ($0.06) EPS. The company's quarterly revenue was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. On average, research analysts forecast that Reddit Inc. will post 1.12 EPS for the current fiscal year.

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.