Yousif Capital Management LLC Purchases 11,803 Shares of Reddit Inc. $RDDT

Key Points

• Yousif Capital Management increased its Reddit stake by 662% in the third quarter, acquiring 11,803 additional shares for a total position of 13,586 shares valued at approximately $1.94 million.
• Reddit recently reported strong results, with revenue up 61% year over year to $804.9 million and EPS of $1.25, beating analyst expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $219.29.
• Despite growth prospects from advertising and AI initiatives, investors remain concerned about slower growth, Reddit’s premium valuation and recent insider selling. The stock opened at $134.72, well below its 12-month high of $263.50.

Yousif Capital Management LLC boosted its position in Reddit Inc. (NYSE:RDDT - Free Report) by 662.0% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 13,586 shares of the company's stock after acquiring an additional 11,803 shares during the quarter. Yousif Capital Management LLC's holdings in Reddit were worth $1,935,000 at the end of the most recent quarter.

Other institutional investors also recently added to or reduced their stakes in the company. Evansbrook LLC grew its holdings in Reddit by 2.2% during the 1st quarter. Evansbrook LLC now owns 2,736 shares of the company's stock worth $368,000 after acquiring an additional 59 shares in the last quarter. Signaturefd LLC raised its holdings in shares of Reddit by 7.6% in the 2nd quarter. Signaturefd LLC now owns 878 shares of the company's stock valued at $152,000 after purchasing an additional 62 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Reddit by 48.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock valued at $34,000 after purchasing an additional 64 shares in the last quarter. Versant Capital Management Inc raised its holdings in shares of Reddit by 31.1% in the 2nd quarter. Versant Capital Management Inc now owns 291 shares of the company's stock valued at $51,000 after purchasing an additional 69 shares in the last quarter. Finally, Central Pacific Bank Trust Division lifted its position in shares of Reddit by 8.6% during the 3rd quarter. Central Pacific Bank Trust Division now owns 885 shares of the company's stock worth $126,000 after purchasing an additional 70 shares during the last quarter.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Analysts expect Reddit to extend its record of quarterly earnings beats since its initial public offering. Strong advertising growth, artificial-intelligence initiatives and the potential for another revenue beat could help revive investor confidence. Reddit Q3 Earnings Preview
• Positive Sentiment: Truist Financial reiterated a Buy rating, indicating that the firm sees potential in Reddit’s advertising business and longer-term growth opportunities. Truist Buy Rating
• Neutral Sentiment: Reddit introduced a “For You” feed alongside its “Following” feed, adopting a recommendation-based format popularized by TikTok. The change could improve user engagement and ad inventory, although its financial impact is not yet clear. Reddit Introduces For You Feed
• Negative Sentiment: Recent selling reflects fears of slower growth ahead of the earnings release. Investors are likely to focus on user trends, advertising momentum and management’s outlook to determine whether Reddit’s valuation can be sustained. Reddit Slower-Growth Fears
• Negative Sentiment: Despite strong prior profitability and revenue growth, analysts caution that Reddit’s premium valuation, rising costs and nearly 40% recent decline leave limited room for an earnings or guidance disappointment. Reddit Q3 Buy Sell or Hold Analysis

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Telsey Advisory Group set a $240.00 target price on shares of Reddit in a research note on Friday, July 31st. B. Riley Financial increased their target price on Reddit from $250.00 to $270.00 and gave the company a "buy" rating in a report on Friday, July 31st. Wedbush cut their price target on Reddit from $250.00 to $221.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. Zacks Research cut Reddit from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 25th. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $195.00 price target (down from $215.00) on shares of Reddit in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $219.29.

Insider Activity at Reddit

In related news, CEO Steve Huffman sold 18,000 shares of Reddit stock in a transaction on Friday, August 14th. The shares were sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at $66,598,702.24. This trade represents a 4.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of Reddit stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the sale, the director owned 27,087 shares in the company, valued at $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 306,052 shares of company stock valued at $49,754,523 in the last ninety days. Insiders own 28.48% of the company's stock.

Reddit Trading Down 1.3%

RDDT stock opened at $134.72 on Thursday. The stock has a market cap of $25.92 billion, a P/E ratio of 31.33, a PEG ratio of 0.67 and a beta of 2.05. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $263.50. The company's 50 day moving average is $151.97 and its two-hundred day moving average is $161.59.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.30. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The business had revenue of $804.91 million during the quarter, compared to analysts' expectations of $731.00 million. During the same quarter in the prior year, the business posted $0.45 EPS. The company's revenue for the quarter was up 61.0% on a year-over-year basis. On average, equities research analysts predict that Reddit Inc. will post 5.27 earnings per share for the current year.

Reddit Profile

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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