Udine Wealth Management Inc. Acquires Shares of 16,714 Reddit Inc. $RDDT

Key Points

• Udine Wealth Management acquired 16,714 Reddit shares worth approximately $2.9 million, making Reddit about 1.2% of its portfolio. Several other institutional investors also increased their positions.
• Reddit reported quarterly EPS of $1.25, beating estimates of $0.95, while revenue rose 61% year over year to $804.91 million. The stock opened at $158.10, with a market capitalization of roughly $30.4 billion.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $220.90, although some firms recently lowered targets. Reddit insiders sold 151,141 shares worth approximately $25.6 million over the past three months.

Udine Wealth Management Inc. acquired a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 16,714 shares of the company's stock, valued at approximately $2,901,000. Reddit accounts for about 1.2% of Udine Wealth Management Inc.'s investment portfolio, making the stock its 28th biggest holding.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. Truist Financial Corp boosted its position in Reddit by 67.7% during the 4th quarter. Truist Financial Corp now owns 15,659 shares of the company's stock valued at $3,600,000 after buying an additional 6,321 shares during the period. Swiss Life Asset Management Ltd increased its position in shares of Reddit by 63.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company's stock valued at $7,357,000 after acquiring an additional 12,398 shares during the period. Calamos Advisors LLC purchased a new position in shares of Reddit in the fourth quarter valued at about $2,299,000. Handelsbanken Fonder AB increased its position in shares of Reddit by 22.9% in the fourth quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company's stock valued at $8,505,000 after acquiring an additional 6,900 shares during the period. Finally, Berkshire Capital Holdings Inc. raised its stake in shares of Reddit by 326,400.0% during the fourth quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company's stock valued at $7,505,000 after acquiring an additional 32,640 shares during the last quarter.

Reddit Trading Up 3.0%

NYSE:RDDT opened at $158.10 on Friday. The company has a 50-day moving average price of $175.21 and a 200-day moving average price of $159.70. The stock has a market cap of $30.42 billion, a price-to-earnings ratio of 36.77, a P/E/G ratio of 0.52 and a beta of 2.03. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The company had revenue of $804.91 million for the quarter, compared to analysts' expectations of $731.00 million. During the same quarter in the previous year, the company earned $0.45 earnings per share. Reddit's quarterly revenue was up 61.0% on a year-over-year basis. Equities analysts forecast that Reddit Inc. will post 5.22 EPS for the current fiscal year.

Analyst Ratings Changes

RDDT has been the subject of a number of analyst reports. Wells Fargo & Company dropped their target price on shares of Reddit from $187.00 to $142.00 and set an "equal weight" rating for the company in a report on Friday, July 31st. KeyCorp initiated coverage on Reddit in a report on Wednesday, July 29th. They set an "overweight" rating and a $225.00 price target on the stock. Oppenheimer lowered their price target on Reddit from $225.00 to $200.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. Wall Street Zen cut Reddit from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $180.00 price objective on shares of Reddit in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $220.90.

Insider Buying and Selling at Reddit

In other Reddit news, 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 in the company, valued at approximately $185,846,982.66. This represents a 3.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the transaction, the chief accounting officer directly owned 15,060 shares of the company's stock, valued at $3,012,000. This represents a 5.09% 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 three months, insiders have sold 151,141 shares of company stock valued at $25,635,785. 28.48% of the stock is currently owned by corporate insiders.

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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