Aware Super Pty Ltd as trustee of Aware Super Takes Position in Reddit Inc. $RDDT

Key Points

• Aware Super disclosed a new first-quarter stake in Reddit, buying 17,477 shares valued at about $2.35 million.
• Wall Street sentiment remains broadly positive: Wedbush started coverage with an Outperform rating and a $250 price target, while several firms cited Reddit’s AI and ad-growth initiatives as key upside drivers.
• Reddit’s latest results were strong, with Q1 EPS of $1.01 versus $0.62 expected and revenue up 69.1% year over year; however, insiders have also been selling shares recently, adding a mixed signal for investors.

Aware Super Pty Ltd as trustee of Aware Super purchased a new stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 17,477 shares of the company's stock, valued at approximately $2,353,000.

Several other institutional investors and hedge funds have also added to or reduced their stakes in RDDT. Ascentis Independent Advisors bought a new stake in Reddit during the 1st quarter worth $30,000. LOM Asset Management Ltd acquired a new stake in Reddit during the 4th quarter worth approximately $33,000. Noble Wealth Management PBC bought a new stake in Reddit during the 4th quarter worth approximately $34,000. Geneos Wealth Management Inc. increased its position in Reddit by 344.6% in the 1st 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 period. Finally, V Square Quantitative Management LLC acquired a new position in Reddit in the 1st quarter valued at approximately $43,000.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wedbush initiated coverage on Reddit with an Outperform rating and a $250 price target, signaling strong confidence in the company’s long-term monetization potential. Benzinga article on Wedbush coverage
• Positive Sentiment: Analysts highlighted Reddit’s AI initiative, including partnerships, platform upgrades, and ad tools, as a growing driver of revenue and engagement. Zacks article on Reddit AI initiative
• Positive Sentiment: Jefferies said Reddit could beat second-quarter revenue and EBITDA expectations thanks to strong ad checks and improving user growth, which would support the bullish earnings narrative. Proactive Investors article on earnings beat potential
• Positive Sentiment: Several reports suggested Reddit stock may be undervalued relative to its AI and ad-growth outlook, with one piece citing as much as 47% upside based on those themes. Yahoo Finance article on undervaluation
• Neutral Sentiment: One article noted that analysts are still mixed on Reddit and other communication-services names, suggesting the stock may remain volatile as sentiment varies. The Globe and Mail article on conflicted analysts
• Negative Sentiment: Reddit also saw coverage around a recent selloff and questions about why the stock fell more than the broader market, indicating some traders are still taking profits after a strong run. Zacks article on recent decline

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Citigroup reiterated a "market outperform" rating on shares of Reddit in a report on Tuesday, May 26th. Truist Financial set a $265.00 price objective on Reddit in a report on Friday, May 1st. Oppenheimer reaffirmed an "outperform" rating and set a $225.00 target price on shares of Reddit in a research report on Friday, May 1st. Zacks Research downgraded Reddit from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 3rd. Finally, Jefferies Financial Group set a $250.00 price target on Reddit in a research report on Friday, July 10th. Nineteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $231.79.

Insiders Place Their Bets

In related news, CAO Michelle Marie Reynolds sold 808 shares of Reddit stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares in the company, valued at $3,012,000. This trade represents a 5.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of Reddit stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares in the company, valued at approximately $185,846,982.66. The trade was a 3.59% 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 have sold a total of 169,141 shares of company stock worth $28,680,845 over the last 90 days. Corporate insiders own 28.48% of the company's stock.

Reddit Price Performance

Shares of NYSE:RDDT opened at $181.91 on Friday. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The company has a market capitalization of $35.02 billion, a PE ratio of 51.97 and a beta of 1.93. The business has a fifty day moving average price of $172.78 and a two-hundred day moving average price of $169.74.

Reddit (NYSE:RDDT - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. During the same period last year, the business posted $0.13 earnings per share. The business's revenue for the quarter was up 69.1% on a year-over-year basis. Sell-side analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current 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.

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