Armistice Capital LLC Boosts Stock Holdings in Reddit Inc. $RDDT

Key Points

• Armistice Capital LLC has increased its holdings in Reddit Inc. by 89.5%, now owning 36,000 shares valued at $3.776 million as per its latest SEC filing.
• Reddit reported an EPS of $0.45 for the most recent quarter, exceeding expectations, while revenue rose 77.9% compared to the previous year.
• Insider trading activity included CEO Steve Ladd Huffman selling over 124,000 shares for approximately $15.5 million, leading to a significant decrease in his ownership position.

Armistice Capital LLC raised its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 89.5% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 36,000 shares of the company's stock after buying an additional 17,000 shares during the period. Armistice Capital LLC's holdings in Reddit were worth $3,776,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. CWM LLC increased its holdings in Reddit by 100.0% during the first quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after buying an additional 128 shares during the last quarter. Stone House Investment Management LLC purchased a new stake in Reddit during the first quarter valued at approximately $31,000. Canton Hathaway LLC purchased a new stake in Reddit during the first quarter valued at approximately $43,000. Olde Wealth Management LLC purchased a new stake in shares of Reddit in the first quarter worth $46,000. Finally, Fourth Dimension Wealth LLC purchased a new stake in shares of Reddit in the fourth quarter worth $49,000.

Reddit Stock Performance

RDDT stock traded up $9.16 during trading on Thursday, hitting $232.30. 4,264,063 shares of the company's stock traded hands, compared to its average volume of 7,776,296. Reddit Inc. has a 52 week low of $55.25 and a 52 week high of $253.14. The business has a fifty day simple moving average of $183.25 and a 200 day simple moving average of $142.52. The stock has a market capitalization of $43.48 billion, a price-to-earnings ratio of 211.18, a P/E/G ratio of 3.57 and a beta of 2.40.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.45 EPS 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 analyst estimates of $424.07 million. During the same quarter last year, the business earned ($0.06) earnings per share. Reddit's quarterly revenue was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. Research analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on RDDT shares. Bank of America increased their price objective on shares of Reddit from $130.00 to $150.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. The Goldman Sachs Group reissued a "neutral" rating and issued a $212.00 price objective on shares of Reddit in a research note on Friday, August 1st. Loop Capital reduced their price objective on shares of Reddit from $210.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, June 12th. JPMorgan Chase & Co. increased their price objective on shares of Reddit from $145.00 to $190.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Finally, Citigroup increased their price objective on shares of Reddit from $158.00 to $163.00 and gave the stock a "buy" rating in a research note on Tuesday, June 24th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Reddit presently has a consensus rating of "Moderate Buy" and an average price target of $175.38.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 124,409 shares of the stock in a transaction on Monday, June 16th. The shares were sold at an average price of $124.45, for a total transaction of $15,482,700.05. Following the completion of the transaction, the chief executive officer owned 546,133 shares in the company, valued at $67,966,251.85. This trade represents a 18.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Jennifer L. Wong sold 40,967 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $220.38, for a total transaction of $9,028,307.46. Following the transaction, the chief operating officer directly owned 120,033 shares in the company, valued at approximately $26,452,872.54. This trade represents a 25.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 486,777 shares of company stock worth $82,247,376 over the last three months. 34.25% of the stock is owned by company insiders.

Reddit 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.