Profund Advisors LLC Acquires 9,497 Shares of Reddit Inc. $RDDT

Profund Advisors LLC purchased a new position in shares of Reddit Inc. (NYSE:RDDT) during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 9,497 shares of the company’s stock, valued at approximately $1,353,000.

Several other hedge funds have also made changes to their positions in RDDT. Sunbelt Securities Inc. grew its stake in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after purchasing an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock worth $34,000 after buying an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. bought a new stake in shares of Reddit during the 2nd quarter worth about $35,000. Ascentis Independent Advisors bought a new stake in shares of Reddit during the 1st quarter worth about $30,000. Finally, Hager Investment Management Services LLC lifted its stake in shares of Reddit by 522.2% in the 2nd quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock worth $49,000 after acquiring an additional 235 shares during the period.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s underlying financial results remain strong: quarterly revenue increased 53% year over year to approximately $895 million, while earnings exceeded analyst expectations. A separate analysis also highlighted improving average revenue per user, suggesting that advertiser monetization and engagement remain healthy. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Although analysts broadly reduced their targets, many remain above the recent share price. Deutsche Bank maintained a “buy” rating with a $165 target, while Jefferies, Goldman Sachs, Piper Sandler and JPMorgan assigned targets ranging from $140 to $155, $145 and $150, respectively. This indicates that the selloff may have created potential value if Reddit stabilizes traffic and user growth. Deutsche Bank Reddit Rating
• Neutral Sentiment: Analyst valuation comparisons continue to debate whether RDDT offers better value than other internet-platform stocks, including Spotify. The discussion reinforces that Reddit’s valuation depends heavily on its ability to convert engagement into sustainable advertising growth. RDDT vs. SPOT
• Negative Sentiment: The dominant catalyst is concern that Google’s AI search changes are reducing traffic to Reddit, particularly in the United States. Investors are also worried that Reddit’s logged-in-only strategy could limit user acquisition and raise the cost of attracting new users. Reddit Stock Sinks as Q3 Results Clash With User Outlook
• Negative Sentiment: A wave of target reductions and downgrades—including moves to “neutral,” “hold,” “in-line” and “market perform”—has weakened investor confidence, even though revised targets remain above the recent price. Reddit Fair Value Moves Lower
• Negative Sentiment: Kirby McInerney LLP announced an investigation into potential securities-law or business-practice violations involving Reddit and its management. The announcement is preliminary and does not establish wrongdoing, but it adds legal and reputational risk. Reddit Investigation Announcement

Reddit Price Performance

NYSE:RDDT opened at $91.05 on Tuesday. Reddit Inc. has a fifty-two week low of $89.28 and a fifty-two week high of $263.50. The stock’s 50-day moving average is $149.13 and its two-hundred day moving average is $159.42. The stock has a market cap of $17.52 billion, a PE ratio of 18.58, a price-to-earnings-growth ratio of 0.62 and a beta of 2.05.

Reddit (NYSE:RDDT) last issued its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. During the same quarter last year, the firm earned $0.80 earnings per share. The company’s revenue for the quarter was up 53.0% on a year-over-year basis. On average, equities research analysts anticipate that Reddit Inc. will post 5.28 earnings per share for the current year.

Insider Activity

In other news, CEO Steve Huffman sold 17,308 shares of the firm’s stock in a transaction dated Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total transaction of $2,744,529.56. Following the completion of the transaction, the chief executive officer directly owned 336,432 shares of the company’s stock, valued at approximately $53,348,022.24. This trade represents a 4.89% 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, COO Jennifer L. Wong sold 60,000 shares of Reddit stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total value of $9,033,000.00. Following the sale, the chief operating officer directly owned 1,012,226 shares in the company, valued at $152,390,624.30. The trade was a 5.60% 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. Over the last three months, insiders sold 288,052 shares of company stock valued at $46,878,483. 28.48% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on RDDT. Citizens Jmp cut Reddit from a “market outperform” rating to a “market perform” rating in a research note on Friday. Truist Financial cut their price target on shares of Reddit from $275.00 to $210.00 and set a “buy” rating for the company in a report on Friday. Robert W. Baird set a $185.00 price target on shares of Reddit in a report on Friday, July 31st. President Capital reduced their price objective on shares of Reddit from $207.00 to $199.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. Finally, Citigroup cut shares of Reddit from a “market outperform” rating to a “market perform” rating in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have assigned a Hold rating to the stock. According to data from MarketBeat, Reddit presently has an average rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Company Profile

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.