Peregrine Capital Management LLC Has $28.99 Million Holdings in Reddit Inc. $RDDT

Key Points

• Peregrine Capital Management increased its Reddit stake by 43.5% in the first quarter, buying 65,298 additional shares and bringing its total holding to 215,279 shares worth about $28.99 million.
• Reddit reported strong quarterly results, with EPS of $1.01 versus expectations of $0.62 and revenue of $663.41 million, up 69.1% year over year.
• Despite the earnings beat, the stock was down 0.4% and insider selling remained notable, including recent sales by CTO Christopher Brian Slowe and COO Jennifer L. Wong; analysts currently rate the stock Moderate Buy with an average target price of $230.75.

Peregrine Capital Management LLC lifted its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 43.5% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 215,279 shares of the company's stock after purchasing an additional 65,298 shares during the quarter. Reddit accounts for 1.1% of Peregrine Capital Management LLC's holdings, making the stock its 16th largest position. Peregrine Capital Management LLC owned 0.11% of Reddit worth $28,987,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in RDDT. Vanguard Group Inc. grew its position in Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock worth $3,062,339,000 after buying an additional 1,083,540 shares in the last quarter. Capital World Investors acquired a new position in Reddit in the 4th quarter valued at $1,293,258,000. State Street Corp lifted its position in shares of Reddit by 6.0% during the 4th quarter. State Street Corp now owns 2,631,332 shares of the company's stock valued at $604,864,000 after acquiring an additional 149,401 shares during the period. Geode Capital Management LLC lifted its position in shares of Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock valued at $546,789,000 after acquiring an additional 106,821 shares during the period. Finally, Morgan Stanley lifted its position in shares of Reddit by 11.4% during the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company's stock valued at $545,354,000 after acquiring an additional 242,709 shares during the period.

Reddit Stock Down 0.4%

Shares of RDDT stock opened at $173.65 on Wednesday. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $282.95. The company has a market cap of $33.43 billion, a P/E ratio of 49.61 and a beta of 1.91. The business has a fifty day simple moving average of $162.94 and a 200 day simple moving average of $172.21.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The firm had revenue of $663.41 million for the quarter, compared to analysts' expectations of $607.74 million. During the same quarter in the previous year, the business posted $0.13 earnings per share. The business's revenue for the quarter was up 69.1% on a year-over-year basis. As a group, equities research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Christopher Brian Slowe sold 15,500 shares of Reddit stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the sale, the chief technology officer directly owned 38,413 shares of the company's stock, valued at approximately $5,787,686.71. The trade was a 28.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the transaction, the chief operating officer owned 1,050,339 shares of the company's stock, valued at approximately $185,846,982.66. This represents a 3.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 223,000 shares of company stock worth $36,913,785. Corporate insiders own 28.48% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently commented on the company. DA Davidson restated a "buy" rating and issued a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Jefferies Financial Group cut their price objective on shares of Reddit from $285.00 to $250.00 and set a "buy" rating for the company in a research report on Tuesday, March 10th. Raymond James Financial set a $180.00 price objective on shares of Reddit and gave the stock a "market perform" rating in a research note on Friday, May 1st. Zacks Research cut shares of Reddit from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. Finally, Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Eighteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $230.75.

Reddit Company Profile

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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