Merit Financial Group Invests $533,000 in Reddit Shares

Merit Financial Group LLC has established a new position in Reddit Inc. (NYSE:RDDT), acquiring 2,318 shares valued at approximately $533,000. This investment was disclosed in the firm’s latest 13F filing with the Securities and Exchange Commission (SEC) for the third quarter of 2023. This move reflects a broader trend, as several institutional investors have recently adjusted their stakes in Reddit.

In the second quarter, Financial Perspectives Inc. entered the Reddit market with a new investment worth around $34,000. Meanwhile, Geneos Wealth Management Inc. significantly increased its holdings by 344.6% in the first quarter, owning 369 shares valued at $39,000 following the purchase of an additional 286 shares. Additionally, GAMMA Investing LLC expanded its stake by a staggering 8,650.0% during the third quarter, now holding 175 shares worth $40,000 after acquiring 173 more. Advisors Asset Management Inc. also grew its investment by 68.2% in the second quarter, owning 365 shares valued at $55,000 after buying an extra 148 shares. Furthermore, Western Pacific Wealth Management LP purchased a new position in Reddit valued at $60,000.

In related news, two insiders executed significant sales of Reddit shares recently. Chief Technology Officer Christopher Brian Slowe sold 14,000 shares on December 22, 2023, at an average price of $233.53, totaling approximately $3.27 million. Following this transaction, Slowe holds 171,694 shares valued at about $40.1 million, marking a 7.54% decrease in his ownership.

Similarly, insider Benjamin Seong Lee sold 18,750 shares on December 18, 2023, at an average price of $240.00, amounting to $4.5 million. After this sale, Lee owns 62,608 shares valued at approximately $15 million, reflecting a 23.05% decline in his position. Over the past ninety days, insiders have sold a total of 474,246 shares valued at $99.9 million, with insiders owning 34.25% of the company’s stock.

Reddit’s stock has recently experienced a slight decline of 0.6%. The company announced its earnings results on October 30, 2023, reporting an earnings per share (EPS) of $0.80 for the quarter, surpassing analysts’ estimates of $0.50 by $0.30. Reddit generated $584.91 million in revenue, exceeding expectations of $546.65 million. The firm also noted a net margin of 18.33% and a return on equity of 14.94%, with a remarkable 67.9% increase in quarterly revenue year-over-year compared to the previous year.

Looking ahead, analysts predict that Reddit Inc. will post an EPS of $1.12 for the current year.

Recent analyst reports have varied in their outlook for Reddit. Zacks Research downgraded the stock from a “strong-buy” rating to a “hold” rating on December 26, 2023. In contrast, Jefferies Financial Group raised its target price on Reddit from $300.00 to $325.00 while maintaining a “buy” rating as of December 11, 2023. Weiss Ratings reaffirmed a “hold (c-)” rating, while JPMorgan Chase & Co. increased their price objective from $190.00 to $227.00 with a “neutral” rating on October 31, 2023. Raymond James Financial also restated a “strong-buy” rating and set a price target of $250.00, up from $225.00, on October 20, 2023.

Currently, two analysts rate the stock as a Strong Buy, fifteen have issued a Buy rating, eleven have assigned a Hold rating, and two have given a Sell rating. Based on information from MarketBeat.com, Reddit has a consensus rating of “Moderate Buy” and an average target price of $230.65.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit operates as an online social news aggregation and discussion platform, featuring user-created communities known as “subreddits.” The platform allows users to submit links, text posts, images, and videos, with community members voting and commenting to highlight popular content. Reddit is headquartered in San Francisco and caters to a global audience, particularly in the United States and other English-speaking regions.

For further details on institutional holdings and insider trades for Reddit Inc., visit HoldingsChannel.com to access the latest 13F filings. To stay updated on Reddit and related companies, you can subscribe to MarketBeat.com’s daily email newsletter for concise summaries of news and analyst ratings.