Spartan Wealth Advisory Services LLC Invests $1.55 Million in Reddit Inc. $RDDT

Key Points

• Spartan Wealth Advisory Services LLC opened a new position in Reddit during the first quarter, buying 11,533 shares valued at about $1.55 million.
• Reddit’s latest earnings beat expectations, with $1.01 EPS and $663.4 million in revenue, while revenue rose 69.1% year over year.
• Wall Street remains mostly positive on the stock, with a Moderate Buy consensus and an average price target of $231.79, though recent insider sales and mixed analyst opinions suggest some caution.

Spartan Wealth Advisory Services LLC acquired a new position in Reddit Inc. (NYSE:RDDT - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 11,533 shares of the company's stock, valued at approximately $1,553,000.

Several other large investors also recently added to or reduced their stakes in the business. Ascentis Independent Advisors purchased a new stake in shares of Reddit in the 1st quarter worth $30,000. LOM Asset Management Ltd bought a new position in Reddit in the 4th quarter worth $33,000. Geneos Wealth Management Inc. lifted its position in 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 purchasing an additional 286 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in Reddit in the first quarter worth about $43,000. Finally, Summit Securities Group LLC bought a new position in shares of Reddit in the fourth quarter worth about $46,000.

Reddit Price Performance

Reddit stock opened at $181.91 on Monday. Reddit Inc. has a 1 year low of $119.27 and a 1 year high of $282.95. The firm's 50 day moving average price is $172.78 and its 200-day moving average price is $169.29. The stock has a market cap of $35.02 billion, a P/E ratio of 51.97 and a beta of 1.93.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.39. The firm had revenue of $663.41 million during 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 revenue for the quarter was up 69.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.13 earnings per share. As a group, equities analysts expect that Reddit Inc. will post 4.85 EPS for the current year.

Wall Street Analyst Weigh In

RDDT has been the subject of a number of recent research reports. UBS Group reiterated a "mixed" rating on shares of Reddit in a research note on Thursday, July 9th. Citizens Jmp dropped their price target on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a research report on Friday, May 1st. Jefferies Financial Group set a $250.00 price objective on shares of Reddit in a research note on Friday, July 10th. Wall Street Zen downgraded shares of Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. Finally, Raymond James Financial set a $180.00 price target on Reddit and gave the stock a "market perform" rating in a research note on Friday, May 1st. Nineteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $231.79.

Insider Buying and Selling at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the transaction, the chief operating officer owned 1,088,451 shares in the company, valued at $172,541,252.52. This trade represents a 3.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer owned 15,060 shares of the company's stock, valued at $3,012,000. This represents a 5.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 169,141 shares of company stock valued at $28,680,845 in the last 90 days. Insiders own 28.48% of the company's stock.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wedbush initiated coverage on Reddit with an Outperform rating and a $250 price target, signaling strong confidence in the company’s long-term monetization potential. Benzinga article on Wedbush coverage
• Positive Sentiment: Analysts highlighted Reddit’s AI initiative, including partnerships, platform upgrades, and ad tools, as a growing driver of revenue and engagement. Zacks article on Reddit AI initiative
• Positive Sentiment: Jefferies said Reddit could beat second-quarter revenue and EBITDA expectations thanks to strong ad checks and improving user growth, which would support the bullish earnings narrative. Proactive Investors article on earnings beat potential
• Positive Sentiment: Several reports suggested Reddit stock may be undervalued relative to its AI and ad-growth outlook, with one piece citing as much as 47% upside based on those themes. Yahoo Finance article on undervaluation
• Neutral Sentiment: One article noted that analysts are still mixed on Reddit and other communication-services names, suggesting the stock may remain volatile as sentiment varies. The Globe and Mail article on conflicted analysts
• Negative Sentiment: Reddit also saw coverage around a recent selloff and questions about why the stock fell more than the broader market, indicating some traders are still taking profits after a strong run. Zacks article on recent decline

About Reddit

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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