Bessemer Group Inc. Buys 10,996 Shares of Reddit Inc. $RDDT

Key Points

• Bessemer Group Inc. increased its Reddit stake by 2.4% in the first quarter, buying 10,996 more shares and bringing its total holding to 469,907 shares valued at about $63.3 million.
• Reddit’s latest quarterly results topped expectations, with EPS of $1.01 and revenue of $663.4 million, reflecting 69.1% year-over-year revenue growth.
• Sentiment around Reddit remains largely positive: analysts have issued multiple bullish ratings and price targets, including Wedbush’s Outperform call with a $250 target, though some insiders have recently sold shares.

Bessemer Group Inc. boosted its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 2.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 469,907 shares of the company's stock after purchasing an additional 10,996 shares during the quarter. Bessemer Group Inc. owned about 0.25% of Reddit worth $63,273,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in RDDT. Capital World Investors bought a new stake in shares of Reddit in the 4th quarter valued at about $1,293,258,000. Norges Bank purchased a new stake in Reddit during the fourth quarter valued at approximately $372,047,000. Invesco Ltd. lifted its position in 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 acquiring an additional 1,201,237 shares during the last quarter. State Street Corp boosted its stake in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after acquiring an additional 1,178,890 shares in the last quarter. Finally, Vanguard Group Inc. boosted its stake in Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after acquiring an additional 1,083,540 shares in the last quarter.

Reddit Stock Performance

Reddit stock opened at $181.91 on Friday. The company's fifty day moving average price is $172.78 and its 200 day moving average price is $169.74. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The stock has a market capitalization of $35.02 billion, a P/E ratio of 51.97 and a beta of 1.93.

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

Reddit News Summary

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

Analysts Set New Price Targets

RDDT has been the topic of several research analyst reports. Citigroup reissued a "market outperform" rating on shares of Reddit in a research report on Tuesday, May 26th. Citizens Jmp lowered their price objective on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a research note on Friday, May 1st. Piper Sandler reissued an "overweight" rating and set a $215.00 price objective on shares of Reddit in a report on Thursday, July 9th. Wells Fargo & Company boosted their price objective on shares of Reddit from $176.00 to $187.00 and gave the company an "equal weight" rating in a report on Tuesday, July 7th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Reddit in a research report on Friday, May 8th. Nineteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $231.79.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction dated Tuesday, June 30th. The shares were 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 of the company's stock, valued at approximately $64,718,417.82. This trade represents a 4.59% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed 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 dated Tuesday, June 16th. The stock was sold at an average price of $176.94, for a total value of $6,930,032.04. Following the completion of the sale, the chief operating officer 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. 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 169,141 shares of company stock valued at $28,680,845 over the last 90 days. Corporate insiders own 28.48% of the company's stock.

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.

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