Bessemer Group Inc. Boosts Stake in Reddit Inc. $RDDT

Bessemer Group Inc. grew its stake in Reddit Inc. (NYSE:RDDT) by 2.4% in the first quarter, Holdings Channel.com reports. The firm owned 469,907 shares of the company’s stock after acquiring an additional 10,996 shares during the quarter. Bessemer Group Inc.’s holdings in Reddit were worth $63,273,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Ascentis Independent Advisors acquired a new stake in shares of Reddit in the 1st quarter worth $30,000. LOM Asset Management Ltd purchased a new stake in shares of Reddit in the fourth quarter valued at about $33,000. Noble Wealth Management PBC acquired a new stake in Reddit during the fourth quarter worth about $34,000. Geneos Wealth Management Inc. increased its position in Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after purchasing an additional 286 shares during the last quarter. Finally, V Square Quantitative Management LLC purchased a new position in Reddit during the first quarter worth about $43,000.

Reddit Stock Down 1.8%

Shares of Reddit stock opened at $181.91 on Friday. Reddit Inc. has a 52-week low of $119.27 and a 52-week high of $282.95. The company has a market capitalization of $35.02 billion, a P/E ratio of 51.97 and a beta of 1.93. The company has a 50 day moving average of $172.78 and a 200 day moving average of $169.74.

Reddit (NYSE:RDDT) last issued its earnings results 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 return on equity of 25.48% and a net margin of 28.60%.The business’s quarterly revenue was up 69.1% on a year-over-year basis. During the same quarter last year, the company earned $0.13 EPS. As a group, research analysts anticipate that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Reddit News Roundup

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

Insider Buying and Selling

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the completion of the sale, the chief executive officer owned 373,814 shares in the company, valued at approximately $64,718,417.82. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 dated Tuesday, June 16th. The shares were sold at an average price of $176.94, for a total value of $6,930,032.04. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares in the company, 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. Insiders sold a total of 169,141 shares of company stock worth $28,680,845 in the last 90 days. Company insiders own 28.48% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Jefferies Financial Group set a $250.00 price target on Reddit in a research note on Friday, July 10th. Wells Fargo & Company boosted their price objective on shares of Reddit from $176.00 to $187.00 and gave the company an “equal weight” rating in a report on Tuesday, July 7th. Cantor Fitzgerald upped their target price on shares of Reddit from $170.00 to $180.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Oppenheimer reaffirmed an “outperform” rating and set a $225.00 target price on shares of Reddit in a research note on Friday, May 1st. Finally, 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. Nineteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $231.79.

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.