JPMorgan Chase & Co. Acquires 944,847 Shares of Reddit Inc. (NYSE:RDDT)

Key Points

• JPMorgan Chase & Co. has significantly increased its stake in Reddit Inc. by 98.2%, owning 1,907,495 shares valued at approximately $200 million after purchasing 944,847 additional shares.
• Reddit reported a net revenue of $499.63 million for the quarter, beating analyst estimates of $424.07 million and achieving a remarkable 77.9% year-over-year revenue growth.
• Insider transactions included CEO Steve Ladd Huffman selling 124,409 shares for over $15 million, reducing his ownership by 18.55% while significant insider ownership still stands at 34.25% of the stock.

JPMorgan Chase & Co. boosted its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 98.2% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 1,907,495 shares of the company's stock after purchasing an additional 944,847 shares during the quarter. JPMorgan Chase & Co. owned about 1.05% of Reddit worth $200,096,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. CWM LLC grew its position in Reddit by 100.0% in the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares during the period. Fourth Dimension Wealth LLC purchased a new position in Reddit during the 4th quarter worth $49,000. Chelsea Counsel Co. purchased a new position in Reddit during the 4th quarter worth $49,000. Quarry LP purchased a new position in Reddit during the 4th quarter worth $59,000. Finally, CoreCap Advisors LLC boosted its holdings in Reddit by 3,500.0% during the 4th quarter. CoreCap Advisors LLC now owns 360 shares of the company's stock worth $59,000 after acquiring an additional 350 shares during the last quarter.

Reddit Price Performance

Shares of RDDT traded up $2.93 during midday trading on Friday, hitting $246.40. 6,421,788 shares of the company traded hands, compared to its average volume of 8,277,376. The stock has a 50-day moving average of $159.01 and a 200-day moving average of $141.03. Reddit Inc. has a one year low of $52.39 and a one year high of $248.02. The firm has a market cap of $46.12 billion, a P/E ratio of 224.00, a PEG ratio of 3.91 and a beta of 2.30.

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

Analyst Ratings Changes

RDDT has been the topic of a number of analyst reports. Roth Mkm lifted their price objective on shares of Reddit from $120.00 to $130.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Piper Sandler lifted their price objective on shares of Reddit from $150.00 to $210.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Roth Capital lifted their price objective on shares of Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Seaport Res Ptn raised shares of Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. Finally, Wall Street Zen raised shares of Reddit from a "hold" rating to a "buy" rating in a report on Saturday, June 14th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $168.43.

Insider Buying and Selling

In other news, COO Jennifer L. Wong sold 33,334 shares of the company's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $142.06, for a total transaction of $4,735,428.04. Following the sale, the chief operating officer directly owned 1,428,007 shares in the company, valued at $202,862,674.42. This represents a 2.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CTO Christopher Brian Slowe sold 16,000 shares of the company's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $145.58, for a total value of $2,329,280.00. Following the sale, the chief technology officer owned 241,373 shares in the company, valued at approximately $35,139,081.34. This represents a 6.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 352,568 shares of company stock valued at $45,798,117. Corporate insiders own 34.25% of the company's stock.

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.