Reddit Inc. $RDDT Stake Raised by JAT Capital Mgmt LP

Key Points

• JAT Capital Management LP increased its stake in **Reddit Inc.** by **87.6%**, making it **7.6%** of their holdings, which valued the investment at approximately **$21.4 million**.
• Reddit's recent quarterly earnings surpassed expectations with an **EPS of $0.45** and a **77.9% increase in revenue** year-over-year, reaching **$499.63 million**.
• Analyst ratings for Reddit are mixed, with **two analysts rating it as a Strong Buy** and thirteen assigning Buy ratings, but Wall Street Zen recently downgraded it from a "buy" to a "hold" rating.

JAT Capital Mgmt LP lifted its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 87.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 204,007 shares of the company's stock after purchasing an additional 95,248 shares during the quarter. Reddit accounts for approximately 7.6% of JAT Capital Mgmt LP's portfolio, making the stock its 7th largest position. JAT Capital Mgmt LP owned about 0.11% of Reddit worth $21,400,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of RDDT. CWM LLC boosted its stake in Reddit by 100.0% in the first quarter. CWM LLC now owns 256 shares of the company's stock worth $27,000 after buying an additional 128 shares in the last quarter. Stone House Investment Management LLC purchased a new stake in Reddit in the first quarter worth approximately $31,000. Canton Hathaway LLC purchased a new stake in Reddit in the first quarter worth approximately $43,000. Olde Wealth Management LLC purchased a new stake in Reddit in the first quarter worth approximately $46,000. Finally, Fourth Dimension Wealth LLC purchased a new stake in Reddit in the fourth quarter worth approximately $49,000.

Reddit Stock Performance

Shares of Reddit stock traded up $8.08 during midday trading on Friday, reaching $240.19. 5,551,228 shares of the company's stock traded hands, compared to its average volume of 5,904,451. The company has a market cap of $44.95 billion, a PE ratio of 218.35, a price-to-earnings-growth ratio of 3.68 and a beta of 2.40. The stock has a 50 day moving average of $186.96 and a 200-day moving average of $143.13. Reddit Inc. has a 12 month low of $55.25 and a 12 month high of $253.14.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.25. The company had revenue of $499.63 million during 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 revenue for the quarter was up 77.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.06) earnings per share. Reddit has set its Q3 2025 guidance at EPS. On average, equities analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have issued reports on RDDT shares. Guggenheim upped 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. Wall Street Zen downgraded Reddit from a "buy" rating to a "hold" rating in a research report on Saturday, August 30th. Raymond James Financial reiterated a "strong-buy" rating and issued a $225.00 price objective (up previously from $175.00) on shares of Reddit in a research report on Friday, August 1st. Citigroup boosted their price objective on Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research report on Tuesday, June 24th. Finally, Needham & Company LLC boosted their price objective on Reddit from $165.00 to $215.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Reddit has an average rating of "Moderate Buy" and an average target price of $175.38.

Insiders Place Their Bets

In other Reddit news, CTO Christopher Brian Slowe sold 28,000 shares of the stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $218.94, for a total value of $6,130,320.00. Following the completion of the transaction, the chief technology officer owned 222,534 shares in the company, valued at approximately $48,721,593.96. This represents a 11.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Jennifer L. Wong sold 40,967 shares of the stock in a transaction on Friday, August 22nd. The stock was 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 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 position. The disclosure for this sale can be found here. Insiders have sold 516,777 shares of company stock worth $88,790,076 in the last ninety days. Insiders own 34.25% of the company's stock.

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.