Cumberland Partners Ltd Purchases Shares of 6,000 Reddit Inc. $RDDT

Key Points

• Cumberland Partners Ltd opened a new position in Reddit during the first quarter, buying 6,000 shares valued at about $808,000. Several other hedge funds also added smaller stakes in the social media company.
• Reddit posted a strong quarterly update, reporting EPS of $1.01 versus the $0.62 consensus and revenue of $663.41 million, up 69.1% year over year. Analysts now expect the company to earn 4.85 EPS for the current fiscal year.
• Despite bullish analyst coverage and a Moderate Buy consensus with a $232.48 average price target, insiders have been selling shares and recent headlines highlight uncertainty around Reddit’s $60 million-per-year Google AI licensing deal. That deal remains a key overhang as investors watch for the next earnings report.

Cumberland Partners Ltd purchased a new position in shares of Reddit Inc. (NYSE:RDDT - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 6,000 shares of the company's stock, valued at approximately $808,000.

Several other institutional investors and hedge funds have also modified their holdings of RDDT. Ascentis Independent Advisors purchased a new stake in shares of Reddit in the first quarter worth about $30,000. LOM Asset Management Ltd purchased a new position in Reddit during the fourth quarter valued at approximately $33,000. Geneos Wealth Management Inc. lifted its holdings in Reddit by 344.6% in the first 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. V Square Quantitative Management LLC acquired a new position in Reddit in the first quarter valued at approximately $43,000. Finally, Cassaday & Co Wealth Management LLC purchased a new stake in Reddit in the 1st quarter worth approximately $46,000.

Reddit Price Performance

Reddit stock opened at $168.75 on Friday. The stock has a market capitalization of $32.49 billion, a PE ratio of 48.22 and a beta of 1.93. The business has a 50 day simple moving average of $174.67 and a 200-day simple moving average of $167.69. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same quarter last year, the firm posted $0.13 EPS. The business's revenue was up 69.1% on a year-over-year basis. On average, equities research analysts anticipate that Reddit Inc. will post 4.85 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Michelle Marie Reynolds sold 808 shares of Reddit stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $178.26, for a total transaction of $3,208,680.00. Following the sale, the chief executive officer directly owned 373,814 shares of the company's stock, valued at $66,636,083.64. This represents 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. Over the last ninety days, insiders sold 169,141 shares of company stock worth $28,680,845. Company insiders own 28.48% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have recently commented on RDDT shares. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $200.00 price objective on shares of Reddit in a research note on Friday, May 1st. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Jefferies Financial Group set a $250.00 price target on shares of Reddit in a research report on Friday, July 10th. Truist Financial set a $265.00 price objective on shares of Reddit in a report on Friday, May 1st. Finally, Piper Sandler reiterated an "overweight" rating and issued a $215.00 price objective on shares of Reddit in a research report on Thursday, July 9th. Nineteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, Reddit has an average rating of "Moderate Buy" and a consensus price target of $232.48.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit was added to Wedbush’s Best Ideas list ahead of Q2 results, and DA Davidson reiterated a Buy rating with a $200 price target, signaling Wall Street still sees meaningful upside. Reddit added to Wedbush Best Ideas List ahead of Q2 results
• Positive Sentiment: Several recent bullish notes say Reddit’s fundamentals remain strong, with rapid revenue growth, high margins, and ad-driven expansion supporting the stock despite valuation concerns. Reddit: Ignore The Potential Google Scuffle And Carry On
• Positive Sentiment: Investors are looking for a Q2 beat, with guidance pointing to roughly 43% to 45% year-over-year revenue growth and a strong EBITDA margin, which could reinforce the growth story if delivered. Reddit: Why I'm Staying Bullish Into The Q2 Print
• Neutral Sentiment: Analyst commentary this week has focused on Reddit alongside other communication-services names, but no major new company-specific catalyst was disclosed in the headline item. Analysts Offer Insights on Communication Services Companies
• Neutral Sentiment: Reddit’s upcoming earnings report is expected to show growth, but some screening models suggest the setup is not ideal for a clean earnings beat, keeping expectations mixed. Reddit Inc. (RDDT) Reports Next Week: Wall Street Expects Earnings Growth
• Negative Sentiment: The main overhang is renewed uncertainty around Reddit’s reported $60 million-per-year Google AI licensing deal, with some reports suggesting Reddit may rethink the agreement if renewal talks stall or content restrictions emerge. Reddit (RDDT) May Rethink $60 Million Google AI Deal As Renewal Talks Drag
• Negative Sentiment: Recent reports of a possible Google content restriction or AI feud triggered a sharp drop in the stock and pushed Reddit below key moving averages, signaling weaker momentum in the near term. Reddit stock plunges on report of possible Google content restrictions

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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