Janney Montgomery Scott LLC Decreases Position in Reddit Inc. $RDDT

Key Points

• Janney Montgomery Scott LLC sharply reduced its Reddit stake by 78.6% in the first quarter, selling 46,441 shares and ending with 12,665 shares worth about $1.7 million.
• Reddit’s latest earnings were strong: the company reported $1.01 EPS versus $0.62 expected and revenue of $663.41 million, up 69.1% year over year.
• Wall Street remains mostly constructive on the stock, with a Moderate Buy consensus and an average price target of $231.14, even as some analysts have mixed or hold views.

Janney Montgomery Scott LLC cut its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 78.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 12,665 shares of the company's stock after selling 46,441 shares during the period. Janney Montgomery Scott LLC's holdings in Reddit were worth $1,705,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Capital World Investors purchased a new position in shares of Reddit in the fourth quarter worth about $1,293,258,000. Norges Bank purchased a new stake in Reddit during the 4th quarter valued at about $372,047,000. Invesco Ltd. boosted its holdings in Reddit by 419.0% during 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 during the period. State Street Corp grew its position in Reddit by 138.5% during the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company's stock worth $305,678,000 after acquiring an additional 1,178,890 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in Reddit by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock worth $3,062,339,000 after acquiring an additional 1,083,540 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Wells Fargo & Company boosted their price objective on Reddit from $176.00 to $187.00 and gave the company an "equal weight" rating in a research report on Tuesday. Piper Sandler restated an "overweight" rating and issued a $215.00 target price on shares of Reddit in a report on Thursday. Loop Capital reaffirmed a "buy" rating and issued a $260.00 target price on shares of Reddit in a research note on Thursday, June 4th. UBS Group reiterated a "mixed" rating on shares of Reddit in a report on Thursday. Finally, Wall Street Zen cut shares of Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. Eighteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $231.14.

Reddit Price Performance

RDDT stock opened at $195.09 on Friday. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The firm has a 50-day moving average of $169.48 and a 200 day moving average of $170.92. The company has a market cap of $37.56 billion, a P/E ratio of 55.74 and a beta of 1.93.

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

Insider Activity

In related news, CAO Michelle Marie Reynolds sold 808 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the sale, the chief accounting officer directly owned 15,060 shares of the company's stock, valued at $3,012,000. This represents a 5.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $157.15, for a total value of $2,828,700.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at approximately $64,619,294.25. This trade represents a 4.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 226,308 shares of company stock worth $37,856,340 in the last quarter. 28.48% of the stock is owned by company insiders.

Reddit Company 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.

Want to see what other hedge funds are holding RDDT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Reddit Inc. (NYSE:RDDT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.