Fifth Third Bancorp Increases Stake in Reddit Inc. $RDDT

Key Points

• Fifth Third Bancorp massively increased its Reddit position in Q1, boosting its stake by 9,310.8% to 8,752 shares valued at about $1.18 million.
• Other institutions also raised exposure, while insiders were active sellers: COO Jennifer L. Wong and CAO Michelle Marie Reynolds both sold shares under pre-arranged trading plans, and insiders sold 169,141 shares in the last quarter.
• Wall Street remains broadly constructive on Reddit, with a Moderate Buy consensus and an average price target of $232.48; the company also posted strong Q1 results, including 69.1% revenue growth and EPS that beat expectations.

Fifth Third Bancorp grew its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 9,310.8% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 8,752 shares of the company's stock after purchasing an additional 8,659 shares during the quarter. Fifth Third Bancorp's holdings in Reddit were worth $1,178,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. NewEdge Advisors LLC boosted its position in Reddit by 143.3% during the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock valued at $837,000 after buying an additional 4,701 shares during the period. Empowered Funds LLC bought a new stake in Reddit in the 1st quarter worth $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock valued at $22,759,000 after acquiring an additional 111,780 shares during the period. Focus Partners Wealth increased its position in shares of Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock valued at $1,073,000 after acquiring an additional 2,965 shares during the period. Finally, Geneos Wealth Management Inc. raised its stake in shares of Reddit by 344.6% during 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 last quarter.

Insiders Place Their Bets

In other news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares of the company's stock, valued at approximately $172,541,252.52. This represents a 3.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the chief accounting officer owned 15,060 shares of the company's stock, valued at approximately $3,012,000. The trade was a 5.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have 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 research firms have recently weighed in on RDDT. Loop Capital reiterated a "buy" rating and set a $260.00 target price on shares of Reddit in a report on Thursday, June 4th. Wedbush restated an "outperform" rating on shares of Reddit in a report on Thursday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Reddit in a research report on Friday, May 8th. Rothschild & Co Redburn set a $110.00 price objective on Reddit in a report on Monday, April 27th. Finally, Jefferies Financial Group set a $250.00 price objective on Reddit in a research report on Friday, July 10th. Nineteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, Reddit has a consensus rating of "Moderate Buy" and an average price target of $232.48.

Reddit Trading Down 0.0%

NYSE:RDDT opened at $168.75 on Friday. The company has a 50-day moving average price of $174.67 and a 200-day moving average price of $167.69. The stock has a market cap of $32.49 billion, a price-to-earnings ratio of 48.22 and a beta of 1.93. 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 quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The company had revenue of $663.41 million for the quarter, compared to analysts' expectations of $607.74 million. During the same quarter in the previous year, the company earned $0.13 earnings per share. Reddit's quarterly revenue was up 69.1% on a year-over-year basis. Equities analysts forecast that Reddit Inc. will post 4.85 EPS for the current fiscal year.

Reddit News Roundup

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

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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