Thornburg Investment Management Inc. Grows Position in Reddit Inc. $RDDT

Key Points

• Thornburg Investment Management increased its Reddit position by 306.1% in the second quarter, ending with 34,236 shares valued at approximately $5.94 million. Several other institutional investors also added to their holdings.
• Analysts maintain a generally positive outlook, with Reddit holding a consensus “Moderate Buy” rating and an average price target of $221.10, although some firms recently lowered ratings or price targets to “Hold” or neutral.
• Reddit reported stronger-than-expected quarterly results, including $1.25 in earnings per share and $804.91 million in revenue, up 61% year over year. Meanwhile, executives sold shares under pre-arranged trading plans, and RDDT opened at $152.63, below its 50-day moving average.

Thornburg Investment Management Inc. boosted its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 306.1% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 34,236 shares of the company's stock after acquiring an additional 25,805 shares during the period. Thornburg Investment Management Inc.'s holdings in Reddit were worth $5,943,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also added to or reduced their stakes in RDDT. Sunbelt Securities Inc. lifted its position in shares of Reddit by 87.5% in the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock worth $26,000 after purchasing an additional 91 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Reddit by 48.1% during the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock valued at $34,000 after buying an additional 64 shares during the period. Beacon Investment Advisory Services Inc. bought a new position in Reddit in the second quarter worth approximately $35,000. Summit Securities Group LLC bought a new position in Reddit in the fourth quarter worth approximately $46,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its holdings in Reddit by 214.3% during the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 220 shares of the company's stock worth $51,000 after buying an additional 150 shares during the period.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on RDDT shares. DA Davidson reissued a "buy" rating and issued a $200.00 price target on shares of Reddit in a research report on Thursday, July 23rd. Telsey Advisory Group set a $240.00 price objective on Reddit in a research report on Friday, July 31st. JPMorgan Chase & Co. cut their target price on Reddit from $200.00 to $185.00 and set a "neutral" rating on the stock in a research note on Friday, July 31st. Zacks Research downgraded shares of Reddit from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. Finally, Wall Street Zen lowered shares of Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $221.10.

Insiders Place Their Bets

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00. Following the completion of the sale, the chief executive officer owned 373,814 shares of the company's stock, valued at approximately $66,598,702.24. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 75,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.55, for a total value of $13,391,250.00. Following the sale, the chief operating officer owned 1,050,339 shares in the company, valued at $187,538,028.45. The trade was a 6.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 192,102 shares of company stock valued at $33,710,892. 28.48% of the stock is owned by corporate insiders.

Reddit Trading Down 0.9%

Shares of RDDT stock opened at $152.63 on Friday. Reddit Inc. has a 12-month low of $119.27 and a 12-month high of $282.95. The business's fifty day simple moving average is $171.76 and its 200-day simple moving average is $158.39. The company has a market cap of $29.37 billion, a PE ratio of 35.50, a PEG ratio of 0.51 and a beta of 2.03.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source