Jefferies Financial Group Inc. Trims Holdings in Reddit Inc. (NYSE:RDDT)

Key Points

• Jefferies Financial Group Inc. sold 3,443 shares of Reddit Inc., reducing its holdings by 61.4% in the first quarter, leaving it with 2,168 shares valued at $227,000.
• During the same period, other institutional investors like US Bancorp DE and EFG Asset Management Americas Corp. significantly increased their positions in Reddit, with US Bancorp DE boosting its stake by 56.9%.
• Reddit reported earnings of $0.45 per share for the most recent quarter, surpassing estimates of $0.20, and saw a 77.9% year-over-year increase in revenue to $499.63 million.

Jefferies Financial Group Inc. lessened its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 61.4% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 2,168 shares of the company's stock after selling 3,443 shares during the quarter. Jefferies Financial Group Inc.'s holdings in Reddit were worth $227,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in RDDT. Lord Abbett & CO. LLC grew its holdings in shares of Reddit by 12.8% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,861,998 shares of the company's stock worth $304,325,000 after buying an additional 211,636 shares in the last quarter. Cresset Asset Management LLC grew its holdings in shares of Reddit by 159.6% during the fourth quarter. Cresset Asset Management LLC now owns 1,308,797 shares of the company's stock worth $213,910,000 after buying an additional 804,591 shares in the last quarter. Whale Rock Capital Management LLC purchased a new stake in shares of Reddit during the fourth quarter worth $204,054,000. Voya Investment Management LLC purchased a new stake in shares of Reddit in the fourth quarter valued at about $157,984,000. Finally, Voloridge Investment Management LLC grew its holdings in shares of Reddit by 46.3% in the fourth quarter. Voloridge Investment Management LLC now owns 963,516 shares of the company's stock valued at $157,477,000 after purchasing an additional 304,773 shares during the period.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on RDDT. Needham & Company LLC increased their target price on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Citigroup increased their target price on shares of Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Piper Sandler increased their target price on shares of Reddit from $150.00 to $210.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Robert W. Baird increased their target price on shares of Reddit from $120.00 to $151.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 8th. Finally, Sanford C. Bernstein increased their price target on shares of Reddit from $130.00 to $150.00 and gave the stock a "market perform" rating in a research report on Tuesday, July 22nd. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $168.43.

Insider Activity

In related news, CEO Steve Ladd Huffman sold 124,409 shares of the stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $124.45, for a total transaction of $15,482,700.05. Following the completion of the sale, the chief executive officer owned 546,133 shares of the company's stock, valued at approximately $67,966,251.85. This represents a 18.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction that occurred on 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 sale, the chief financial officer directly owned 333,806 shares of the company's stock, valued at approximately $39,268,937.84. This trade represents a 8.25% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 510,309 shares of company stock worth $63,881,845. Company insiders own 34.25% of the company's stock.

Reddit Stock Performance

RDDT traded up $3.13 during trading on Tuesday, hitting $223.88. The stock had a trading volume of 4,725,759 shares, compared to its average volume of 7,916,771. The firm has a market capitalization of $41.90 billion, a P/E ratio of 203.52, a PEG ratio of 3.42 and a beta of 2.30. The company's 50-day moving average price is $149.30 and its 200 day moving average price is $139.41. Reddit Inc. has a twelve month low of $52.39 and a twelve month high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.20 by $0.25. Reddit had a net margin of 12.97% and a return on equity of 9.93%. The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. During the same period in the previous year, the firm earned ($0.06) EPS. The business's revenue was up 77.9% on a year-over-year basis. As a group, equities analysts expect that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

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.