Mitsubishi UFJ Asset Management Co. Ltd. Purchases 37,407 Shares of Reddit Inc. (NYSE:RDDT)

Key Points

• Mitsubishi UFJ Asset Management increased its stake in Reddit Inc. by 44.1%, acquiring an additional 37,407 shares, reaching a total of 122,141 shares valued at approximately $12.81 million.
• Analysts have given Reddit a consensus rating of "Moderate Buy" with an average target price of $168.43, while various brokerages set different price targets ranging from $163.00 to $225.00.
• Reddit's quarterly earnings saw a significant increase, reporting a 77.9% revenue growth year-over-year and beating EPS expectations with $0.45, compared to a loss of $0.06 in the same quarter last year.

Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 44.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 122,141 shares of the company's stock after acquiring an additional 37,407 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.07% of Reddit worth $12,813,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the business. Accuvest Global Advisors purchased a new position in shares of Reddit in the 1st quarter valued at $215,000. Deutsche Bank AG raised its stake in shares of Reddit by 47.8% during the 1st quarter. Deutsche Bank AG now owns 631,135 shares of the company's stock worth $66,206,000 after acquiring an additional 204,030 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in Reddit by 2.0% during the first quarter. Charles Schwab Investment Management Inc. now owns 655,227 shares of the company's stock valued at $68,733,000 after acquiring an additional 12,771 shares during the last quarter. ASR Vermogensbeheer N.V. acquired a new stake in Reddit in the first quarter valued at approximately $191,000. Finally, Vanguard Group Inc. grew its holdings in Reddit by 11.1% in the first quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock worth $1,069,828,000 after purchasing an additional 1,017,162 shares during the last quarter.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RDDT. The Goldman Sachs Group restated a "neutral" rating and set a $212.00 price target on shares of Reddit in a research note on Friday, August 1st. B. Riley restated a "buy" rating and set a $220.00 price target (down previously from $222.00) on shares of Reddit in a research note on Friday, May 2nd. Guggenheim lifted their price objective 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 upped their target price on Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research report on Tuesday, June 24th. Finally, Raymond James Financial restated a "strong-buy" rating and issued a $225.00 target price (up previously from $175.00) on shares of Reddit in a research note on Friday, August 1st. One analyst has rated the stock with a sell rating, nine have given a hold rating, thirteen have assigned a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $168.43.

Reddit Price Performance

NYSE RDDT opened at $220.79 on Tuesday. The stock's 50 day simple moving average is $149.30 and its 200-day simple moving average is $139.41. The company has a market cap of $41.32 billion, a PE ratio of 200.72, a price-to-earnings-growth ratio of 3.42 and a beta of 2.30. Reddit Inc. has a 1-year low of $50.80 and a 1-year high of $230.41.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.20 by $0.25. The firm had revenue of $499.63 million during the quarter, compared to the consensus estimate of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%. The firm's revenue was up 77.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.06) EPS. On average, equities research analysts anticipate that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 33,334 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $142.06, for a total value of $4,735,428.04. Following the transaction, the chief operating officer directly owned 1,428,007 shares of the company's stock, valued at $202,862,674.42. This trade represents a 2.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Christopher Brian Slowe sold 16,000 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $145.58, for a total value of $2,329,280.00. Following the transaction, 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. Insiders have sold 510,309 shares of company stock valued at $63,881,845 over the last ninety days. 34.25% of the stock is currently owned by corporate insiders.

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.

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