Connective Capital Management LLC Takes Position in Reddit Inc. $RDDT

Key Points

• Connective Capital Management LLC has acquired a new stake in Reddit Inc., purchasing 5,630 shares valued at approximately $591,000, making it the fund's 28th largest position.
• Several institutional investors have significantly increased their holdings in Reddit during Q4, with NewEdge Advisors LLC raising its stake by 446.8% and First Trust Advisors LP increasing its holdings by 14.4%.
• Reddit's stock has recently received positive upgrades from analysts, with a consensus rating of **"Moderate Buy"** and an average target price of $175.38 despite a slight current decline in stock value.

Connective Capital Management LLC bought a new stake in Reddit Inc. (NYSE:RDDT - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 5,630 shares of the company's stock, valued at approximately $591,000. Reddit comprises approximately 0.5% of Connective Capital Management LLC's portfolio, making the stock its 28th largest position.

A number of other hedge funds and other institutional investors also recently modified their holdings of RDDT. NewEdge Advisors LLC lifted its stake in shares of Reddit by 446.8% in the 4th quarter. NewEdge Advisors LLC now owns 3,281 shares of the company's stock valued at $536,000 after acquiring an additional 2,681 shares during the last quarter. First Trust Advisors LP increased its holdings in Reddit by 14.4% during the 4th quarter. First Trust Advisors LP now owns 61,019 shares of the company's stock valued at $9,973,000 after purchasing an additional 7,682 shares during the period. MML Investors Services LLC increased its holdings in Reddit by 42.7% during the 4th quarter. MML Investors Services LLC now owns 10,113 shares of the company's stock valued at $1,653,000 after purchasing an additional 3,028 shares during the period. Stifel Financial Corp purchased a new position in Reddit during the 4th quarter valued at about $1,392,000. Finally, Hsbc Holdings PLC purchased a new position in Reddit during the 4th quarter valued at about $958,000.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Seaport Res Ptn upgraded Reddit from a "hold" rating to a "strong-buy" rating in a report on Monday, May 5th. Wells Fargo & Company boosted their price target on Reddit from $115.00 to $118.00 and gave the company an "equal weight" rating in a report on Tuesday, July 1st. Robert W. Baird boosted their price target on Reddit from $120.00 to $151.00 and gave the company a "neutral" rating in a report on Tuesday, July 8th. Roth Capital upped their target price on Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $210.00 target price on shares of Reddit in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $175.38.

Insider Buying and Selling

In related news, COO Jennifer L. Wong sold 32,379 shares of the company's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $242.05, for a total value of $7,837,336.95. Following the transaction, the chief operating officer directly owned 1,395,628 shares of the company's stock, valued at approximately $337,811,757.40. This represents a 2.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Benjamin Seong Lee sold 6,426 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $220.28, for a total value of $1,415,519.28. Following the completion of the transaction, the insider directly owned 83,445 shares in the company, valued at $18,381,264.60. This trade represents a 7.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 411,004 shares of company stock worth $64,005,737 over the last three months. Corporate insiders own 34.25% of the company's stock.

Reddit Stock Down 0.6%

Reddit stock opened at $217.2850 on Monday. The company has a market capitalization of $40.67 billion, a P/E ratio of 197.53, a PEG ratio of 3.45 and a beta of 2.30. The stock's 50 day moving average is $169.82 and its 200 day moving average is $141.10. Reddit Inc. has a twelve month low of $55.02 and a twelve month high of $253.14.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.25. The company had revenue of $499.63 million for the quarter, compared to the consensus estimate of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%.The firm's quarterly revenue was up 77.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.06) EPS. Reddit has set its Q3 2025 guidance at EPS. As a group, equities analysts expect that Reddit Inc. will post 1.12 EPS for the current year.

Reddit Company Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

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