Nykredit A S Purchases New Stake in Reddit Inc. $RDDT

Key Points

• Nykredit A/S acquired 63,646 Reddit shares in the second quarter, valued at approximately $11.05 million, while several other institutional investors also increased or initiated positions.
• Reddit reported a strong quarter, with revenue up 61% year over year to $804.91 million and earnings of $1.25 per share, exceeding the $0.95 consensus estimate.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $221.10, although insiders sold roughly $36.4 million in stock over the past 90 days.

Nykredit A S bought a new position in Reddit Inc. (NYSE:RDDT - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 63,646 shares of the company's stock, valued at approximately $11,048,000.

Several other institutional investors and hedge funds have also modified their holdings of the stock. Sunbelt Securities Inc. raised its position in Reddit by 87.5% during the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after acquiring an additional 91 shares in the last quarter. Ascentis Independent Advisors acquired a new position in shares of Reddit during the 1st quarter worth $30,000. EverSource Wealth Advisors LLC increased its stake in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock worth $34,000 after purchasing an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. bought a new position in shares of Reddit during the 2nd quarter valued at $35,000. Finally, Geneos Wealth Management Inc. raised its holdings in shares of Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock valued at $39,000 after purchasing an additional 286 shares in the last quarter.

Reddit Price Performance

RDDT opened at $154.18 on Friday. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The business's 50-day moving average price is $170.58 and its two-hundred day moving average price is $158.80. The company has a market capitalization of $29.66 billion, a price-to-earnings ratio of 35.86, a P/E/G ratio of 0.71 and a beta of 2.02.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.30. The firm had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The business's quarterly revenue was up 61.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.45 EPS. Sell-side analysts anticipate that Reddit Inc. will post 5.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer Wong sold 75,000 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the transaction, the chief operating officer owned 1,050,339 shares in the company, valued at $187,538,028.45. This trade represents a 6.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the company's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, the director owned 27,087 shares of the company's stock, valued at $4,331,753.04. The trade was a 15.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 210,102 shares of company stock valued at $36,375,252 over the last ninety days. Company insiders own 28.48% of the company's stock.

Analyst Upgrades and Downgrades

RDDT has been the topic of a number of recent analyst reports. UBS Group reissued a "buy" rating on shares of Reddit in a research note on Friday, July 31st. Truist Financial increased their price target on Reddit from $265.00 to $275.00 and gave the company a "buy" rating in a report on Friday, July 31st. Raymond James Financial reissued a "strong-buy" rating and issued a $205.00 price target on shares of Reddit in a research report on Monday, August 17th. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Finally, Sanford C. Bernstein reissued a "market perform" rating and issued a $180.00 price objective on shares of Reddit in a research report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $221.10.

About Reddit

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.

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