Persistent Asset Partners Ltd Makes New $315,000 Investment in Reddit Inc. (NYSE:RDDT)

Key Points

• Persistent Asset Partners Ltd invested $315,000 in Reddit Inc. by acquiring 3,000 shares during the first quarter.
• Reddit's CFO and CEO recently sold significant portions of their stock, with CFO Andrew Vollero selling 30,000 shares and CEO Steve Ladd Huffman selling 124,409 shares, resulting in ownership decreases of 8.25% and 18.55% respectively.
• A number of analysts have increased target prices and given positive ratings for Reddit, with upgrades suggesting a potential for growth in its stock value.

Persistent Asset Partners Ltd bought a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 3,000 shares of the company's stock, valued at approximately $315,000.

A number of other large investors have also recently modified their holdings of RDDT. Whale Rock Capital Management LLC bought a new stake in shares of Reddit during the 4th quarter valued at about $204,054,000. Vanguard Group Inc. boosted its stake in shares of Reddit by 11.1% during the 1st quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock valued at $1,069,828,000 after purchasing an additional 1,017,162 shares in the last quarter. Voya Investment Management LLC bought a new stake in shares of Reddit during the 4th quarter valued at about $157,984,000. JPMorgan Chase & Co. lifted its position in Reddit by 98.2% during the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after acquiring an additional 944,847 shares during the period. Finally, Cresset Asset Management LLC lifted its position in Reddit by 159.6% during the 4th quarter. Cresset Asset Management LLC now owns 1,308,797 shares of the company's stock valued at $213,910,000 after acquiring an additional 804,591 shares during the period.

Insider Activity at Reddit

In other Reddit news, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $117.64, for a total transaction of $3,529,200.00. Following the transaction, the chief financial officer directly owned 333,806 shares in the company, valued at $39,268,937.84. This represents a 8.25% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Steve Ladd Huffman sold 124,409 shares of the stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $124.45, for a total transaction of $15,482,700.05. Following the transaction, the chief executive officer owned 546,133 shares in the company, valued at approximately $67,966,251.85. The trade was a 18.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 510,309 shares of company stock worth $63,881,845. 34.25% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on RDDT. Wolfe Research raised shares of Reddit to an "outperform" rating in a research report on Sunday, August 3rd. Morgan Stanley lifted their price target on shares of Reddit from $170.00 to $230.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Seaport Res Ptn raised shares of Reddit from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 5th. JMP Securities lifted their price target on shares of Reddit from $180.00 to $225.00 and gave the company a "market outperform" rating in a research report on Friday, August 1st. Finally, Needham & Company LLC lifted their target price on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a report on Friday, August 1st. One analyst has rated the stock with a sell rating, nine have issued a hold rating, thirteen have issued a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $168.43.

Reddit Stock Performance

Shares of NYSE:RDDT opened at $220.79 on Tuesday. The firm has a fifty day moving average price of $149.30 and a 200 day moving average price of $139.41. Reddit Inc. has a fifty-two week low of $50.80 and a fifty-two week high of $230.41. The firm has a market cap of $41.32 billion, a price-to-earnings ratio of 200.72, a P/E/G ratio of 3.42 and a beta of 2.30.

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

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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