Sierra Summit Advisors LLC Buys 36,371 Shares of Reddit Inc. $RDDT

Key Points

• Sierra Summit Advisors LLC boosted its Reddit stake by 92.9% in Q1, buying 36,371 shares and bringing its total holding to 75,536 shares worth about $10.17 million.
• Several other institutions also added small positions in Reddit, while insiders have been selling shares; CTO Christopher Brian Slowe and COO Jennifer L. Wong both trimmed holdings under pre-arranged 10b5-1 plans.
• Reddit reported better-than-expected Q1 results, with EPS of $1.01 versus $0.62 expected and revenue up 69.1% year over year, and analysts currently rate the stock a Moderate Buy with an average price target of $230.75.

Sierra Summit Advisors LLC raised its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 92.9% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 75,536 shares of the company's stock after acquiring an additional 36,371 shares during the quarter. Reddit comprises approximately 1.5% of Sierra Summit Advisors LLC's investment portfolio, making the stock its 28th biggest holding. Sierra Summit Advisors LLC's holdings in Reddit were worth $10,171,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of RDDT. GW&K Investment Management LLC bought a new stake in shares of Reddit during the third quarter valued at approximately $30,000. LOM Asset Management Ltd bought a new position in Reddit in the 4th quarter valued at $33,000. Noble Wealth Management PBC bought a new stake in shares of Reddit during the fourth quarter worth $34,000. Geneos Wealth Management Inc. lifted 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 period. Finally, Summit Securities Group LLC acquired a new position in shares of Reddit during the fourth quarter valued at $46,000.

Insiders Place Their Bets

In other news, CTO Christopher Brian Slowe sold 15,500 shares of Reddit stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the transaction, the chief technology officer directly owned 38,413 shares of the company's stock, valued at $5,787,686.71. This trade represents a 28.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,166 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total transaction of $6,930,032.04. Following the completion of the transaction, the chief operating officer directly owned 1,050,339 shares of the company's stock, valued at $185,846,982.66. This trade represents a 3.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 241,000 shares of company stock worth $40,030,125. Company insiders own 28.48% of the company's stock.

Reddit Price Performance

Shares of NYSE:RDDT opened at $194.57 on Friday. The company has a market capitalization of $37.46 billion, a price-to-earnings ratio of 55.59 and a beta of 1.93. The firm's 50 day simple moving average is $164.32 and its 200 day simple moving average is $171.75. Reddit Inc. has a fifty-two week low of $119.27 and a fifty-two week high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.39. The business had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. Reddit's quarterly revenue was up 69.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.13 EPS. Equities research analysts expect that Reddit Inc. will post 4.83 earnings per share for the current year.

Wall Street Analysts Forecast Growth

RDDT has been the subject of a number of research reports. Truist Financial set a $265.00 price objective on Reddit in a research report on Friday, May 1st. Citizens Jmp cut their target price on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a research report on Friday, May 1st. Piper Sandler reaffirmed an "overweight" rating and issued a $215.00 target price (up from $205.00) on shares of Reddit in a research note on Friday, May 1st. Wells Fargo & Company lifted their target price on shares of Reddit from $149.00 to $176.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Finally, DA Davidson restated a "buy" rating and issued a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Eighteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, Reddit has an average rating of "Moderate Buy" and an average price target of $230.75.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Options activity jumped as traders bought far more Reddit call options than usual, suggesting rising bullish sentiment and expectations for further upside. Why is Reddit (RDDT) stock soaring today
• Positive Sentiment: Analysts and market commentary highlighted Reddit’s stronger engagement, international expansion, and new ad tools, reinforcing the company’s long-term growth narrative despite recent volatility. Reddit Stock Falls 28.2% in 6 Months: Should You Buy the Dip?
• Neutral Sentiment: Reddit’s CEO sold 18,000 shares under a pre-arranged 10b5-1 plan. While the sale is worth watching, the transaction was disclosed as part of a scheduled trading program and does not necessarily signal a change in business outlook. SEC filing
• Neutral Sentiment: Some of Thursday’s weakness appears to be simple profit-taking after a 12.5% surge tied to optimism about Reddit’s AI data-licensing opportunities. Why Is Reddit Stock Pulling Back on Thursday?

Reddit Company Profile

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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