PFG Investments LLC Makes New Investment in Reddit Inc. $RDDT

PFG Investments LLC purchased a new stake in shares of Reddit Inc. (NYSE:RDDT) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 3,717 shares of the company’s stock, valued at approximately $500,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Institute for Wealth Management LLC. lifted its position in shares of Reddit by 6.1% during the 4th quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company’s stock worth $246,000 after purchasing an additional 62 shares during the last quarter. Roxbury Financial LLC grew its holdings in Reddit by 7.4% in the 4th quarter. Roxbury Financial LLC now owns 929 shares of the company’s stock valued at $214,000 after buying an additional 64 shares during the last quarter. Florida Financial Advisors LLC increased its position in Reddit by 6.7% in the 4th quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company’s stock worth $250,000 after buying an additional 68 shares during the period. Diversified Trust Co lifted its holdings in shares of Reddit by 2.1% during the first quarter. Diversified Trust Co now owns 3,271 shares of the company’s stock worth $440,000 after buying an additional 68 shares during the last quarter. Finally, IFP Advisors Inc lifted its holdings in shares of Reddit by 9.9% during the third quarter. IFP Advisors Inc now owns 796 shares of the company’s stock worth $183,000 after buying an additional 72 shares during the last quarter.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on RDDT shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Reddit in a research report on Friday, May 8th. Wall Street Zen downgraded shares of Reddit from a “buy” rating to a “hold” rating in a report on Sunday, May 10th. Piper Sandler restated an “overweight” rating and issued a $215.00 price target (up from $205.00) on shares of Reddit in a research report on Friday, May 1st. Oppenheimer reaffirmed an “outperform” rating and set a $225.00 price objective on shares of Reddit in a research report on Friday, May 1st. Finally, Bank of America reduced their target price on shares of Reddit from $205.00 to $175.00 and set a “neutral” rating for the company in a research note on Thursday, April 2nd. Eighteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $231.14.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wells Fargo raised its price target on Reddit to $187 from $176, reinforcing a constructive view on the stock and helping support bullish momentum after a recent rally. Wells Fargo raises target on Reddit
• Positive Sentiment: Reddit is expanding its AI licensing business, which investors may view as an additional revenue stream tied to demand for its content in the AI ecosystem. Reddit expands AI licensing
• Positive Sentiment: The company is accelerating AI safety and anti-spam efforts, including stronger bot detection and human verification, which could improve user trust and protect the quality of Reddit conversations. Reddit AI safety drive accelerates
• Neutral Sentiment: Coverage on Reddit’s recent rally highlights technical strength and potential upside levels, but it is mostly a trading-focused read rather than a new fundamental catalyst. Options Corner video on RDDT
• Neutral Sentiment: Insider selling by the company’s CAO was disclosed, but the transaction was small and occurred under a pre-arranged 10b5-1 plan, making it less likely to signal a major change in outlook. Reddit CAO sells stock
• Negative Sentiment: Despite the higher target, Wells Fargo still rates Reddit “equal weight,” implying the stock may be close to fairly valued rather than dramatically undervalued at current levels. Wells Fargo equal weight rating on Reddit

Insider Buying and Selling

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $175,752,182.97. This trade represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $157.15, for a total value of $2,828,700.00. Following the sale, the chief executive officer directly owned 411,195 shares in the company, valued at $64,619,294.25. The trade was a 4.19% 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. Insiders sold 226,308 shares of company stock valued at $37,856,340 over the last quarter. Corporate insiders own 28.48% of the company’s stock.

Reddit Price Performance

RDDT opened at $199.32 on Wednesday. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The firm’s fifty day moving average price is $166.78 and its two-hundred day moving average price is $171.23. The company has a market capitalization of $38.37 billion, a P/E ratio of 56.95 and a beta of 1.93.

Reddit (NYSE:RDDT) last announced its quarterly earnings data 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 net margin of 28.60% and a return on equity of 25.48%. The company had revenue of $663.41 million during the quarter, compared to analysts’ expectations of $607.74 million. During the same quarter in the prior year, the company posted $0.13 EPS. The business’s revenue was up 69.1% on a year-over-year basis. On average, equities research analysts expect that Reddit Inc. will post 4.83 EPS for the current fiscal 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.