Focus Financial Network Inc. Buys 36,166 Shares of Reddit Inc. $RDDT

Key Points

• Focus Financial Network Inc. significantly increased its stake in Reddit Inc. by 484%, purchasing an additional 36,166 shares, bringing its total holdings to 43,639 shares valued at approximately $6.57 million.
• Analysts have raised their price targets for Reddit, with Needham & Company setting the price objective at $300.00, reflecting positive sentiment and a "buy" rating for the stock.
• Reddit reported a 77.9% year-over-year revenue growth in its latest quarterly earnings, reaching $499.63 million, and beat analyst expectations for earnings per share (EPS) by a substantial margin.

Focus Financial Network Inc. raised its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 484.0% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 43,639 shares of the company's stock after purchasing an additional 36,166 shares during the period. Focus Financial Network Inc.'s holdings in Reddit were worth $6,571,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of the company. New England Research & Management Inc. acquired a new stake in shares of Reddit in the 2nd quarter valued at approximately $218,000. Livforsakringsbolaget Skandia Omsesidigt raised its position in shares of Reddit by 1,414.2% in the 2nd quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 7,571 shares of the company's stock valued at $1,140,000 after acquiring an additional 7,071 shares during the period. Somerset Trust Co acquired a new stake in shares of Reddit in the 2nd quarter valued at approximately $753,000. Salem Investment Counselors Inc. raised its position in shares of Reddit by 11.6% in the 2nd quarter. Salem Investment Counselors Inc. now owns 5,945 shares of the company's stock valued at $895,000 after acquiring an additional 620 shares during the period. Finally, AG2R LA Mondiale Gestion D Actifs acquired a new stake in shares of Reddit in the 1st quarter valued at approximately $892,000.

Reddit Stock Down 2.6%

Shares of NYSE:RDDT traded down $6.96 during midday trading on Monday, hitting $257.52. The stock had a trading volume of 5,271,494 shares, compared to its average volume of 5,397,610. Reddit Inc. has a 12 month low of $63.60 and a 12 month high of $282.95. The business's 50-day simple moving average is $210.50 and its 200-day simple moving average is $150.13. The company has a market cap of $48.20 billion, a P/E ratio of 234.11, a PEG ratio of 4.16 and a beta of 2.38.

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

Insider Activity

In related news, COO Jennifer L. Wong sold 40,967 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $220.38, for a total value of $9,028,307.46. Following the completion of the transaction, the chief operating officer directly owned 120,033 shares of the company's stock, valued at approximately $26,452,872.54. This trade represents a 25.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Andrew Vollero sold 30,000 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $218.09, for a total transaction of $6,542,700.00. Following the completion of the transaction, the chief financial officer directly owned 284,168 shares of the company's stock, valued at $61,974,199.12. This represents a 9.55% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 344,126 shares of company stock valued at $71,345,839 over the last three months. Corporate insiders own 34.25% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Morgan Stanley increased their price target on shares of Reddit from $170.00 to $230.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Citigroup reissued an "outperform" rating on shares of Reddit in a research note on Thursday. Raymond James Financial reissued a "strong-buy" rating and set a $225.00 target price (up from $175.00) on shares of Reddit in a research note on Friday, August 1st. Roth Capital increased their target price on Reddit from $130.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. Finally, Guggenheim increased their target price on Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $197.88.

About Reddit

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.