Aware Super Pty Ltd as trustee of Aware Super Purchases 35,614 Shares of Reddit Inc. $RDDT

Key Points

• Aware Super increased its Reddit stake by 203.8% in the third quarter, buying 35,614 shares to hold 53,091 shares valued at $7.56 million.
• Reddit beat quarterly earnings and revenue estimates, reporting EPS of $1.40 and revenue of $895 million, up 53% year over year.
• Despite the earnings beat, concerns about declining search traffic and weaker revenue guidance have pressured sentiment, with some analysts cutting price targets or downgrading the stock.

Aware Super Pty Ltd as trustee of Aware Super increased its position in Reddit Inc. (NYSE:RDDT - Free Report) by 203.8% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 53,091 shares of the company's stock after acquiring an additional 35,614 shares during the period. Aware Super Pty Ltd as trustee of Aware Super's holdings in Reddit were worth $7,562,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. Wellington Management Group LLP grew its stake in shares of Reddit by 21.8% in the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock worth $271,572,000 after purchasing an additional 280,030 shares in the last quarter. State Street Corp increased its holdings in shares of Reddit by 8.7% during the second quarter. State Street Corp now owns 2,979,587 shares of the company's stock valued at $517,197,000 after purchasing an additional 237,523 shares during the period. Moore Capital Management LP increased its holdings in shares of Reddit by 611.4% during the second quarter. Moore Capital Management LP now owns 12,577 shares of the company's stock valued at $2,183,000 after purchasing an additional 10,809 shares during the period. Light Street Capital Management LLC bought a new stake in shares of Reddit during the second quarter valued at about $31,678,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab raised its stake in shares of Reddit by 102.3% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 19,120 shares of the company's stock valued at $3,319,000 after purchasing an additional 9,670 shares in the last quarter.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit is testing ads in search results, creating another way to monetize users and potentially offset pressure from declining search traffic. Reddit tests ads in search results
• Positive Sentiment: Recent coverage notes strong ad growth and engagement, while Reddit’s reported third-quarter revenue and earnings exceeded consensus estimates. These results show its core ad business is still growing, though user trends remain a concern. Reddit stock after Q3 earnings
• Neutral Sentiment: Reddit and a rights group are challenging Australia’s under-16 social-media ban in court, arguing it raises censorship and privacy concerns. The case’s business impact is uncertain. Australia social media ban challenge
• Negative Sentiment: Investors remain concerned about declining search traffic and weaker-than-expected revenue guidance, which could constrain user acquisition and growth. Analyst estimate reductions and downgrades, alongside multiple price-target cuts, add pressure to sentiment. RDDT Q3 search traffic and guidance
• Negative Sentiment: A law firm has opened an investigation into potential securities-law violations related to Reddit and its management. This is an allegation and investigation, not a finding of wrongdoing, but adds legal uncertainty. Reddit securities investigation notice

Analyst Ratings Changes

Several research firms recently weighed in on RDDT. BNP Paribas Exane reduced their price objective on shares of Reddit from $180.00 to $110.00 in a report on Friday, October 30th. Oppenheimer cut shares of Reddit from an "outperform" rating to a "market perform" rating in a research note on Friday, October 30th. Morgan Stanley dropped their price target on shares of Reddit from $240.00 to $210.00 and set an "overweight" rating on the stock in a research report on Friday, August 21st. Citizens Jmp downgraded shares of Reddit from a "market outperform" rating to a "market perform" rating in a research report on Friday, October 30th. Finally, UBS Group reaffirmed a "buy" rating on shares of Reddit in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have issued a Hold rating to the company's stock. According to data from MarketBeat, Reddit currently has a consensus rating of "Moderate Buy" and an average target price of $180.91.

Reddit Price Performance

Shares of RDDT opened at $96.04 on Wednesday. The stock has a market capitalization of $18.48 billion, a P/E ratio of 18.57, a P/E/G ratio of 0.42 and a beta of 2.28. Reddit Inc. has a 12-month low of $89.28 and a 12-month high of $263.50. The firm's 50 day moving average is $147.99 and its 200-day moving average is $158.63.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.33 by $0.07. The company had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The company's quarterly revenue was up 53.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.80 EPS. As a group, equities research analysts forecast that Reddit Inc. will post 5.35 EPS for the current fiscal year.

Insider Activity at Reddit

In other Reddit news, COO Jennifer L. Wong sold 75,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the sale, the chief operating officer owned 1,050,339 shares in the company, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Huffman sold 18,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total value of $3,206,880.00. Following the sale, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. The trade was a 4.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 288,052 shares of company stock worth $46,878,483 in the last quarter. 28.48% of the stock is owned by company insiders.

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.

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