S&CO Inc. Makes New $1.99 Million Investment in Reddit Inc. $RDDT

S&CO Inc. acquired a new stake in shares of Reddit Inc. (NYSE:RDDTFree Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 11,450 shares of the company’s stock, valued at approximately $1,987,000.

Several other institutional investors and hedge funds have also modified their holdings of the stock. Evansbrook LLC boosted its stake in shares of Reddit by 2.2% in the first quarter. Evansbrook LLC now owns 2,736 shares of the company’s stock worth $368,000 after buying an additional 59 shares during the last quarter. Institute for Wealth Management LLC. raised its position in Reddit by 6.1% during the fourth quarter. Institute for Wealth Management LLC. now owns 1,071 shares of the company’s stock valued at $246,000 after acquiring an additional 62 shares in the last quarter. Signaturefd LLC raised its position in Reddit by 7.6% during the second quarter. Signaturefd LLC now owns 878 shares of the company’s stock valued at $152,000 after acquiring an additional 62 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares during the period. Finally, Florida Financial Advisors LLC lifted its holdings in Reddit by 6.7% in the fourth quarter. Florida Financial Advisors LLC now owns 1,087 shares of the company’s stock valued at $250,000 after acquiring an additional 68 shares during the period.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

  • Positive Sentiment: Index inclusion is the primary catalyst. The addition to the S&P 500 may prompt mandatory purchases by passive funds, while potentially expanding Reddit’s institutional shareholder base and trading liquidity. Reddit stock soars after S&P 500 inclusion announcement
  • Positive Sentiment: Investor positioning turned more bullish. Trading in Reddit call options was unusually active, with 94,890 calls purchased—about 101% above typical daily volume—suggesting increased speculative interest in further gains.
  • Positive Sentiment: Advertising and AI-related opportunities remain part of the longer-term story. Marketers are increasingly focused on Reddit because of its user-generated content, influence on consumer decisions, and potential relevance to large-language-model search and discovery. Brands increasingly focus on Reddit
  • Neutral Sentiment: The immediate index-related boost may not persist. Historical commentary indicates that newly added S&P 500 stocks can experience an initial rally that fades after passive-fund buying is completed. Reddit also remains below its prior peak and is still down for the year, leaving the sustainability of the rally dependent on business execution. Performance of other new S&P 500 stocks
  • Negative Sentiment: Google search-referral risks remain. Concerns that changes in search behavior could reduce traffic to Reddit represent an unresolved risk to audience growth, engagement, and advertising revenue. Reddit search referral concerns
  • Negative Sentiment: Valuation concerns are limiting enthusiasm. At least one analyst downgraded the stock despite the index milestone, arguing that the S&P 500 inclusion alone does not eliminate execution and valuation risks. Reddit analyst downgrade

Insider Activity

In related news, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction on Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the sale, the chief operating officer owned 1,088,451 shares of the company’s stock, valued at approximately $172,541,252.52. This trade represents a 3.47% decrease in their position. 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, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction on 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 directly owned 373,814 shares in the company, valued at $64,718,417.82. This represents a 4.59% 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 have sold 151,141 shares of company stock worth $25,635,785 in the last quarter. Corporate insiders own 28.48% of the company’s stock.

Wall Street Analysts Forecast Growth

RDDT has been the topic of a number of analyst reports. Wells Fargo & Company dropped their price objective on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a research note on Friday, July 31st. Loop Capital reaffirmed a “buy” rating and set a $260.00 target price on shares of Reddit in a report on Thursday, June 4th. Citizens Jmp decreased their target price on shares of Reddit from $250.00 to $240.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. Guggenheim reissued a “buy” rating on shares of Reddit in a report on Friday, July 31st. Finally, The Goldman Sachs Group restated a “neutral” rating and set a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $220.90.

Check Out Our Latest Stock Analysis on Reddit

Reddit Trading Up 12.7%

Shares of RDDT stock opened at $178.25 on Friday. Reddit Inc. has a 12-month low of $119.27 and a 12-month high of $282.95. The business’s 50 day moving average is $175.31 and its two-hundred day moving average is $159.83. The company has a market capitalization of $34.29 billion, a P/E ratio of 41.45, a P/E/G ratio of 0.60 and a beta of 2.03.

Reddit (NYSE:RDDTGet Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.25 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. The business had revenue of $804.91 million during the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.The business’s revenue was up 61.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.45 earnings per share. On average, research analysts predict that Reddit Inc. will post 5.22 earnings per share for the current fiscal year.

About Reddit

(Free Report)

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.

Read More

Want to see what other hedge funds are holding RDDT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Reddit Inc. (NYSE:RDDTFree Report).

Institutional Ownership by Quarter for Reddit (NYSE:RDDT)

Receive News & Ratings for Reddit Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Reddit and related companies with MarketBeat.com's FREE daily email newsletter.