Reddit Inc. $RDDT Stock Purchased by International Assets Investment Management LLC

Key Points

• International Assets Investment Management LLC more than doubled its Reddit stake in the third quarter, acquiring 14,719 additional shares for a total holding of 28,695 shares valued at approximately $4.1 million.
• Reddit reported strong quarterly results, with revenue rising 53% year over year to about $895 million and earnings of $1.40 per share, beating analyst expectations. Advertising revenue and monetization improved, though management warned of weaker search traffic and potential declines in daily active users.
• RDDT shares opened at $91.74, near their 52-week low of $89.28 and well below the $263.50 high. Analysts maintain a consensus “Moderate Buy” rating, but several have lowered price targets amid concerns about Google search dependence, international user growth and the company’s logged-in-only strategy.

International Assets Investment Management LLC grew its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 105.3% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 28,695 shares of the company's stock after acquiring an additional 14,719 shares during the quarter. International Assets Investment Management LLC's holdings in Reddit were worth $4,087,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently modified their holdings of RDDT. Senvest Management LLC bought a new position in shares of Reddit in the first quarter worth approximately $48,392,000. Robeco Institutional Asset Management B.V. lifted its position in Reddit by 74.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company's stock valued at $115,243,000 after purchasing an additional 345,735 shares during the last quarter. Wellington Management Group LLP lifted its position in Reddit by 21.8% during the second quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company's stock valued at $271,572,000 after purchasing an additional 280,030 shares during the last quarter. Styrax Capital LP purchased a new position in Reddit in the 2nd quarter worth approximately $43,395,000. Finally, State Street Corp grew its stake in Reddit by 8.7% in the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company's stock worth $517,197,000 after buying an additional 237,523 shares in the last quarter.

Reddit Stock Up 0.0%

Shares of NYSE:RDDT opened at $91.74 on Monday. The stock has a market cap of $17.65 billion, a PE ratio of 18.72, a PEG ratio of 0.42 and a beta of 2.05. The company's fifty day moving average is $150.37 and its 200 day moving average is $160.26. Reddit Inc. has a 52 week low of $89.28 and a 52 week high of $263.50.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The business had revenue of $894.96 million during the quarter, compared to the consensus estimate of $874.91 million. During the same period in the previous year, the firm posted $0.80 earnings per share. The firm's revenue for the quarter was up 53.0% on a year-over-year basis. Sell-side analysts anticipate that Reddit Inc. will post 5.28 EPS for the current year.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported third-quarter revenue of approximately $895 million, up 53% year over year, and earnings of $1.40 per share, exceeding analyst expectations. Advertising revenue increased 54%, while improved monetization and first-week app retention—up more than 50% year over year—provided evidence of continued platform engagement. Reddit Q3 Earnings Beat on Ad Growth and Strong Monetization
• Positive Sentiment: Several analysts retained constructive views despite reducing their targets. Citigroup, Truist Financial, B. Riley and Wedbush still rated RDDT Buy or Outperform, with targets above the current trading level, suggesting potential long-term recovery if user engagement and monetization improve. Reddit Analysts Slash Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Reddit plans to test a primarily logged-in experience in international markets to reduce data scraping, strengthen data protection and limit its reliance on search referrals. Management is also responding to the growing impact of Google AI search features on website traffic. Reddit Search Traffic Declines and Visitor Sign-In Plans
• Negative Sentiment: Management’s outlook was the main catalyst for the selloff. Search traffic was described as meaningfully lower, and daily active unique visitors could decline by a low double-digit percentage in the fourth quarter if Google referrals continue weakening. The logged-in-only strategy could further reduce casual and logged-out users before improving engagement or monetization.
• Negative Sentiment: Analysts broadly cut price targets, including Wells Fargo to $110, Cantor Fitzgerald to $120 and Bernstein to $120; Oppenheimer and Citizens JMP downgraded the stock to market perform. Investors are concerned that international user growth is less valuable than U.S. growth, while Meta and Google remain powerful advertising competitors.
• Negative Sentiment: Levi & Korsinsky and Block & Leviton announced investigations into whether Reddit adequately disclosed the risks associated with its logged-in-only transition and search-traffic exposure, adding legal and reputational uncertainty. Reddit Investigation Notice

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. decreased their price target on shares of Reddit from $200.00 to $185.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. KeyCorp downgraded shares of Reddit from an "overweight" rating to a "sector weight" rating in a report on Friday. Robert W. Baird set a $185.00 target price on shares of Reddit in a research report on Friday, July 31st. Wedbush reduced their target price on Reddit from $221.00 to $150.00 and set an "outperform" rating on the stock in a research note on Friday. Finally, DA Davidson reduced their target price on Reddit from $200.00 to $185.00 and set a "buy" rating on the stock in a research note on Friday, September 18th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $197.61.

Insider Transactions at Reddit

In related news, CEO Steve Huffman sold 18,000 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $66,598,702.24. This represents a 4.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, the director owned 27,087 shares of the company's stock, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 306,052 shares of company stock worth $49,754,523. Company insiders own 28.48% of the company's stock.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.

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