GK Wealth Management LLC Invests $1.30 Million in Reddit Inc. $RDDT

GK Wealth Management LLC acquired a new position in shares of Reddit Inc. (NYSE:RDDT) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 7,519 shares of the company’s stock, valued at approximately $1,305,000.

Other hedge funds also recently bought and sold shares of the company. Sunbelt Securities Inc. lifted its holdings in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after buying an additional 91 shares during the last quarter. Ascentis Independent Advisors bought a new position in Reddit during the first quarter valued at approximately $30,000. LOM Asset Management Ltd acquired a new stake in Reddit in the fourth quarter valued at approximately $33,000. Geneos Wealth Management Inc. lifted its stake in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after acquiring an additional 286 shares during the last quarter. Finally, V Square Quantitative Management LLC bought a new stake in Reddit in the first quarter worth approximately $43,000.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on RDDT. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research note on Friday, July 10th. Zacks Research upgraded shares of Reddit from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. Raymond James Financial set a $180.00 target price on shares of Reddit and gave the stock a “market perform” rating in a research report on Friday, May 1st. Truist Financial raised their target price on Reddit from $265.00 to $275.00 and gave the company a “buy” rating in a report on Friday, July 31st. Finally, Loop Capital restated a “buy” rating and set a $260.00 target price on shares of Reddit in a report on Thursday, June 4th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $220.90.

Insider Buying and Selling at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total value of $3,116,340.00. Following the transaction, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $64,718,417.82. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following 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. Insiders sold 151,141 shares of company stock worth $25,588,445 over the last ninety days. Company insiders own 28.48% of the company’s stock.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strong Q2 results and outlook support the rebound. Reddit reported revenue of $804.9 million, up 61% year over year, and EPS of $1.25, beating estimates of $731 million and $0.95, respectively. Advertising revenue rose 64%, while management’s Q3 revenue and adjusted EBITDA guidance of $860 million–$870 million and $385 million–$395 million exceeded consensus expectations. Reddit Q2 review
• Positive Sentiment: Improving monetization and cash flow are attracting buyers. Global daily active unique users reached 130.3 million, and Reddit generated more than $1 billion in trailing-12-month operating cash flow. Analysts highlighted a 24% increase in U.S. average revenue per user, suggesting stronger monetization can offset slower user growth. Reddit valuation and free cash flow analysis
• Positive Sentiment: Reddit continues advancing its digital advertising strategy. Coverage points to expanding advertising tools and stronger monetization of highly engaged users as potential long-term growth drivers. Reddit digital advertising strategy
• Neutral Sentiment: Analyst views remain broadly constructive but targets are mixed. Some firms lowered targets, including Cantor Fitzgerald to $170 and Wedbush to $221, while another analyst raised its target to $275. The differing estimates reflect strong fundamentals but uncertainty about user growth and search traffic. Cantor Fitzgerald target change Reddit price target increase
• Negative Sentiment: Flat U.S. logged-in user growth remains the principal concern. U.S. daily active users declined slightly quarter over quarter to 53.2 million, while logged-in users fell to 23.1 million from 23.2 million. Investors are questioning whether monetization gains can continue if engagement growth stagnates, particularly as Reddit stops separately reporting logged-in and logged-out users. Reddit U.S. user growth concerns
• Negative Sentiment: Search-referral volatility and legal scrutiny add risk. Investors remain concerned that changes in search traffic could reduce Reddit’s less-engaged audience. Separately, Bragar Eagel & Squire announced an investigation on behalf of long-term shareholders, which could create additional reputational and legal overhang, although no wrongdoing has been established. Reddit shareholder investigation

Reddit Stock Up 3.4%

Shares of RDDT stock opened at $159.93 on Wednesday. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $282.95. The company has a market cap of $30.79 billion, a PE ratio of 37.19, a price-to-earnings-growth ratio of 0.54 and a beta of 2.04. The business’s 50 day moving average is $177.29 and its two-hundred day moving average is $162.98.

Reddit (NYSE:RDDT) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping 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 business had revenue of $804.91 million during the quarter, compared to the consensus estimate of $731.00 million. During the same period in the prior year, the firm earned $0.45 EPS. Reddit’s quarterly revenue was up 61.0% compared to the same quarter last year. As a group, equities analysts expect that Reddit Inc. will post 5.03 EPS for the current fiscal year.

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.