Magnetar Financial LLC Takes $204,000 Position in Reddit Inc. $RDDT

Key Points

• Magnetar Financial LLC has made a new investment in Reddit Inc., acquiring 1,945 shares valued at approximately $204,000 during the first quarter.
• Reddit's recent earnings report showed EPS of $0.45, significantly exceeding analysts' expectations of $0.20, with revenues up 77.9% year-over-year.
• Major analysts have raised their price targets for Reddit, with Morgan Stanley increasing theirs from $170.00 to $230.00 and giving the stock an "overweight" rating.

Magnetar Financial LLC bought a new stake in Reddit Inc. (NYSE:RDDT - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 1,945 shares of the company's stock, valued at approximately $204,000.

Other institutional investors have also recently added to or reduced their stakes in the company. JPMorgan Chase & Co. raised its stake in Reddit by 98.2% in the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after purchasing an additional 944,847 shares during the last quarter. Greycroft LP raised its stake in Reddit by 109.1% in the 1st quarter. Greycroft LP now owns 11,500 shares of the company's stock valued at $1,206,000 after purchasing an additional 6,000 shares during the last quarter. Ogborne Capital Management LLC acquired a new position in Reddit in the 4th quarter valued at about $11,539,000. Voloridge Investment Management LLC raised its stake in Reddit by 46.3% in the 4th 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 last quarter. Finally, Renaissance Capital LLC raised its stake in Reddit by 10.9% in the 1st quarter. Renaissance Capital LLC now owns 34,636 shares of the company's stock valued at $3,633,000 after purchasing an additional 3,400 shares during the last quarter.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Loop Capital dropped their price objective on shares of Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, June 12th. Wall Street Zen raised shares of Reddit from a "hold" rating to a "buy" rating in a research note on Sunday. Raymond James Financial reaffirmed a "strong-buy" rating and set a $225.00 price objective (up previously from $175.00) on shares of Reddit in a research note on Friday, August 1st. JMP Securities upped their price objective on shares of Reddit from $180.00 to $225.00 and gave the company a "market outperform" rating in a research note on Friday, August 1st. Finally, Morgan Stanley upped their price objective on shares of Reddit from $170.00 to $230.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $175.38.

Reddit Trading Up 3.5%

RDDT traded up $8.08 during trading on Friday, hitting $240.19. 5,551,228 shares of the company's stock were exchanged, compared to its average volume of 5,904,451. Reddit Inc. has a 1 year low of $55.25 and a 1 year high of $253.14. The stock has a 50 day moving average price of $186.96 and a 200 day moving average price of $142.81. The firm has a market cap of $44.95 billion, a P/E ratio of 218.35, a price-to-earnings-growth ratio of 3.81 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.45 earnings per share (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 during the quarter, compared to the consensus estimate of $424.07 million. During the same period in the previous year, the firm earned ($0.06) earnings per share. Reddit's revenue for the quarter was up 77.9% on a year-over-year basis. Reddit has set its Q3 2025 guidance at EPS. Analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $223.41, for a total value of $4,021,380.00. Following the completion of the sale, the chief executive officer owned 494,104 shares of the company's stock, valued at $110,387,774.64. This trade represents a 3.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $218.09, for a total transaction of $6,542,700.00. Following the completion of the sale, the chief financial officer directly owned 284,168 shares of the company's stock, valued at $61,974,199.12. This trade represents a 9.55% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 516,777 shares of company stock valued at $88,790,076 over the last three months. Company insiders own 34.25% of the company's stock.

Reddit Company 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.