Wealthfront Advisers LLC Raises Stock Holdings in Reddit Inc. $RDDT

Key Points

• Wealthfront Advisers LLC increased its stake in Reddit by 249.9% in Q4, adding 10,164 shares to hold 14,231 shares worth about $3.27 million at period end.
• Q1 beat and strong guidance: Reddit reported EPS $1.01 vs. $0.62 expected and revenue $663.4M (+69% YoY) and guided Q2 revenue to ~$715–$725M, supporting AI-driven ad momentum and a MarketBeat consensus of Moderate Buy with a $228.61 price target.
• Insider activity is mixed: CEO Steve Huffman sold 18,000 shares under a 10b5-1 plan while director Sarah E. Farrell bought 10,500 shares; overall insiders bought 61,000 and sold 280,441 shares in the last three months and own 34.25% of the company.

Wealthfront Advisers LLC increased its position in Reddit Inc. (NYSE:RDDT - Free Report) by 249.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 14,231 shares of the company's stock after purchasing an additional 10,164 shares during the period. Wealthfront Advisers LLC's holdings in Reddit were worth $3,271,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in RDDT. NewEdge Advisors LLC grew its stake in Reddit by 143.3% in the first quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock worth $837,000 after purchasing an additional 4,701 shares during the period. Empowered Funds LLC bought a new stake in Reddit in the first quarter worth $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock worth $22,759,000 after acquiring an additional 111,780 shares in the last quarter. Focus Partners Wealth boosted its holdings in Reddit by 40.8% in the first quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock worth $1,073,000 after acquiring an additional 2,965 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings in Reddit by 344.6% in the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares in the last quarter.

Wall Street Analyst Weigh In

RDDT has been the topic of several analyst reports. Oppenheimer reissued an "outperform" rating and issued a $225.00 target price on shares of Reddit in a report on Friday. Citigroup reissued an "outperform" rating on shares of Reddit in a report on Friday. Needham & Company LLC reissued a "buy" rating and issued a $300.00 target price on shares of Reddit in a report on Friday. Wells Fargo & Company boosted their target price on Reddit from $149.00 to $176.00 and gave the stock an "equal weight" rating in a report on Friday. Finally, Jefferies Financial Group dropped their target price on Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a report on Tuesday, March 10th. Eighteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $228.61.

Reddit Price Performance

Shares of NYSE:RDDT opened at $166.53 on Friday. The company has a market cap of $31.81 billion, a P/E ratio of 63.56, a PEG ratio of 1.07 and a beta of 2.40. Reddit Inc. has a 1 year low of $94.89 and a 1 year high of $282.95. The stock's fifty day moving average price is $144.12 and its 200-day moving average price is $184.31.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. The company had revenue of $663.41 million during the quarter, compared to analysts' expectations of $607.74 million. Reddit had a return on equity of 26.78% and a net margin of 28.60%.Reddit's revenue for the quarter was up 69.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.13 earnings per share. On average, sell-side analysts anticipate that Reddit Inc. will post 4.02 earnings per share for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $158.40, for a total transaction of $2,851,200.00. Following the completion of the sale, the chief executive officer owned 411,195 shares in the company, valued at approximately $65,133,288. This represents a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sarah E. Farrell acquired 10,500 shares of Reddit stock in a transaction that occurred on Friday, March 13th. The shares were purchased at an average price of $132.26 per share, with a total value of $1,388,730.00. Following the transaction, the director owned 61,000 shares of the company's stock, valued at $8,067,860. The trade was a 20.79% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have purchased 61,000 shares of company stock worth $8,870,815 and have sold 280,441 shares worth $40,873,759. 34.25% of the stock is owned by insiders.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 earnings and revenue beat — Reddit reported EPS of $1.01 (vs. ~$0.62 est.) and revenue of about $663M, a ~69% year‑over‑year jump; ad revenue rose sharply, underscoring improving monetization. Zacks: Reddit Q1 Earnings Beat
• Positive Sentiment: Upbeat near-term guidance — management gave Q2 revenue guidance (~$715M–$725M) above Street expectations, signaling continued ad demand momentum. Reuters: Reddit expects revenue above estimates
• Positive Sentiment: AI-driven ad products & search improvements gaining traction — exec commentary and coverage point to rising advertiser adoption of lower‑funnel, AI-enhanced ad tools and a ~30% YoY increase in weekly search usage, both supporting higher yield per user. Reuters: AI-driven ad growth fuels outlook TechCrunch: People are finally using Reddit's search
• Positive Sentiment: Analyst support — several firms reaffirmed or raised targets (e.g., Piper Sandler raised its PT to $215; Needham reaffirmed buy with $300 PT; DA Davidson reaffirmed buy at $200), adding buy‑side validation. TickerReport / coverage on Piper Sandler
• Neutral Sentiment: Unusual options activity — traders purchased ~80,316 call options (about +88% vs. typical daily call volume), indicating speculative bullish positioning but not guaranteeing directional follow‑through.
• Neutral Sentiment: Cantor Fitzgerald raised its price target (to $180) but left a neutral rating — a mixed signal: higher target but not a bullish rating change. Benzinga: Cantor Fitzgerald update
• Negative Sentiment: Some analyst conflict and target trimming — Citizens Jmp reduced its target from $250 to $240 (still bullish stance), reflecting differing views on longer‑term upside and leaving room for skepticism about sustainability. Benzinga: Citizens Jmp update

Reddit 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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