Senvest Management LLC Makes New Investment in Reddit Inc. $RDDT

Senvest Management LLC bought a new stake in shares of Reddit Inc. (NYSE:RDDT) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 359,392 shares of the company’s stock, valued at approximately $48,392,000. Reddit accounts for 1.6% of Senvest Management LLC’s holdings, making the stock its 25th largest holding. Senvest Management LLC owned about 0.19% of Reddit at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Capital World Investors purchased a new stake in Reddit in the fourth quarter worth $1,293,258,000. Norges Bank purchased a new stake in shares of Reddit during the fourth quarter valued at $372,047,000. Invesco Ltd. boosted its stake in shares of Reddit by 419.0% during the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock valued at $342,212,000 after purchasing an additional 1,201,237 shares during the period. State Street Corp grew its holdings in shares of Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company’s stock worth $305,678,000 after purchasing an additional 1,178,890 shares during the last quarter. Finally, Vanguard Group Inc. grew its holdings in shares of Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares during the last quarter.

Reddit Stock Performance

Shares of RDDT opened at $168.75 on Friday. The company has a 50 day moving average price of $174.67 and a 200-day moving average price of $167.69. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $282.95. The stock has a market capitalization of $32.49 billion, a PE ratio of 48.22 and a beta of 1.93.

Reddit (NYSE:RDDT) last announced its quarterly earnings results 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. The business had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business’s revenue was up 69.1% compared to the same quarter last year. During the same period last year, the business posted $0.13 EPS. Equities research analysts forecast that Reddit Inc. will post 4.85 EPS for the current year.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit was added to Wedbush’s Best Ideas list ahead of Q2 results, and DA Davidson reiterated a Buy rating with a $200 price target, signaling Wall Street still sees meaningful upside. Reddit added to Wedbush Best Ideas List ahead of Q2 results
• Positive Sentiment: Several recent bullish notes say Reddit’s fundamentals remain strong, with rapid revenue growth, high margins, and ad-driven expansion supporting the stock despite valuation concerns. Reddit: Ignore The Potential Google Scuffle And Carry On
• Positive Sentiment: Investors are looking for a Q2 beat, with guidance pointing to roughly 43% to 45% year-over-year revenue growth and a strong EBITDA margin, which could reinforce the growth story if delivered. Reddit: Why I’m Staying Bullish Into The Q2 Print
• Neutral Sentiment: Analyst commentary this week has focused on Reddit alongside other communication-services names, but no major new company-specific catalyst was disclosed in the headline item. Analysts Offer Insights on Communication Services Companies
• Neutral Sentiment: Reddit’s upcoming earnings report is expected to show growth, but some screening models suggest the setup is not ideal for a clean earnings beat, keeping expectations mixed. Reddit Inc. (RDDT) Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: The main overhang is renewed uncertainty around Reddit’s reported $60 million-per-year Google AI licensing deal, with some reports suggesting Reddit may rethink the agreement if renewal talks stall or content restrictions emerge. Reddit (RDDT) May Rethink $60 Million Google AI Deal As Renewal Talks Drag
• Negative Sentiment: Recent reports of a possible Google content restriction or AI feud triggered a sharp drop in the stock and pushed Reddit below key moving averages, signaling weaker momentum in the near term. Reddit stock plunges on report of possible Google content restrictions

Insider Buying and Selling at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the company’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $64,718,417.82. This represents a 4.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total transaction of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares in the company, valued at approximately $3,012,000. This trade represents a 5.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 169,141 shares of company stock worth $28,680,845 over the last three months. Corporate insiders own 28.48% of the company’s stock.

Analyst Ratings Changes

Several research firms recently commented on RDDT. Truist Financial set a $265.00 price target on shares of Reddit in a research note on Friday, May 1st. Piper Sandler reissued an “overweight” rating and issued a $215.00 price objective on shares of Reddit in a research report on Thursday, July 9th. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the stock a “market perform” rating in a research note on Friday, May 1st. Jefferies Financial Group set a $250.00 target price on shares of Reddit in a research report on Friday, July 10th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Reddit in a research note on Tuesday, May 26th. Nineteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $232.48.

Reddit 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.