Profund Advisors LLC Makes New Investment in Reddit Inc. $RDDT

Profund Advisors LLC acquired a new stake in Reddit Inc. (NYSE:RDDT) in the 3rd quarter, Holdings Channel.com reports. The fund acquired 9,497 shares of the company’s stock, valued at approximately $1,353,000.

Other large investors have also bought and sold shares of the company. ProShare Advisors LLC bought a new stake in shares of Reddit in the third quarter valued at about $3,880,000. Vise Technologies Inc. grew its holdings in shares of Reddit by 16.3% during the third quarter. Vise Technologies Inc. now owns 3,073 shares of the company’s stock worth $438,000 after buying an additional 430 shares in the last quarter. MGO One Seven LLC grew its holdings in shares of Reddit by 13.6% during the third quarter. MGO One Seven LLC now owns 2,933 shares of the company’s stock worth $418,000 after buying an additional 351 shares in the last quarter. Kurv Investment Management LLC raised its position in Reddit by 25.9% in the 3rd quarter. Kurv Investment Management LLC now owns 12,642 shares of the company’s stock valued at $1,801,000 after buying an additional 2,597 shares during the last quarter. Finally, State of Wyoming raised its position in Reddit by 14.6% in the 3rd quarter. State of Wyoming now owns 2,841 shares of the company’s stock valued at $405,000 after buying an additional 363 shares during the last quarter.

Reddit Trading Down 0.7%

RDDT stock opened at $91.05 on Tuesday. Reddit Inc. has a 1-year low of $89.28 and a 1-year high of $263.50. The stock has a 50-day moving average price of $149.13 and a 200-day moving average price of $159.42. The firm has a market cap of $17.52 billion, a PE ratio of 18.58, a price-to-earnings-growth ratio of 0.62 and a beta of 2.05.

Reddit (NYSE:RDDT) last posted its earnings results on Thursday, October 29th. The company reported $1.40 earnings per share for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The company had revenue of $894.96 million for the quarter, compared to analyst estimates of $874.91 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%. The company’s revenue for the quarter was up 53.0% on a year-over-year basis. During the same quarter last year, the company earned $0.80 earnings per share. On average, analysts forecast that Reddit Inc. will post 5.28 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on RDDT shares. Piper Sandler decreased their price target on shares of Reddit from $195.00 to $145.00 in a research note on Friday. UBS Group reaffirmed a “buy” rating on shares of Reddit in a research report on Friday. B. Riley Financial lowered their price objective on shares of Reddit from $270.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday. BNP Paribas Exane dropped their price objective on shares of Reddit from $180.00 to $110.00 in a research report on Friday. Finally, Loop Capital cut Reddit from a “buy” rating to a “hold” rating and set a $100.00 price objective on the stock. in a research report on Monday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have given a Hold rating to the company’s stock. Based on data from MarketBeat, Reddit currently has an average rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s underlying financial results remain strong: quarterly revenue increased 53% year over year to approximately $895 million, while earnings exceeded analyst expectations. A separate analysis also highlighted improving average revenue per user, suggesting that advertiser monetization and engagement remain healthy. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Although analysts broadly reduced their targets, many remain above the recent share price. Deutsche Bank maintained a “buy” rating with a $165 target, while Jefferies, Goldman Sachs, Piper Sandler and JPMorgan assigned targets ranging from $140 to $155, $145 and $150, respectively. This indicates that the selloff may have created potential value if Reddit stabilizes traffic and user growth. Deutsche Bank Reddit Rating
• Neutral Sentiment: Analyst valuation comparisons continue to debate whether RDDT offers better value than other internet-platform stocks, including Spotify. The discussion reinforces that Reddit’s valuation depends heavily on its ability to convert engagement into sustainable advertising growth. RDDT vs. SPOT
• Negative Sentiment: The dominant catalyst is concern that Google’s AI search changes are reducing traffic to Reddit, particularly in the United States. Investors are also worried that Reddit’s logged-in-only strategy could limit user acquisition and raise the cost of attracting new users. Reddit Stock Sinks as Q3 Results Clash With User Outlook
• Negative Sentiment: A wave of target reductions and downgrades—including moves to “neutral,” “hold,” “in-line” and “market perform”—has weakened investor confidence, even though revised targets remain above the recent price. Reddit Fair Value Moves Lower
• Negative Sentiment: Kirby McInerney LLP announced an investigation into potential securities-law or business-practice violations involving Reddit and its management. The announcement is preliminary and does not establish wrongdoing, but it adds legal and reputational risk. Reddit Investigation Announcement

Insider Activity at Reddit

In other news, COO Jennifer Wong sold 60,000 shares of the stock in a transaction on Wednesday, October 14th. The shares were sold at an average price of $150.55, for a total value of $9,033,000.00. Following the transaction, the chief operating officer owned 1,012,226 shares of the company’s stock, valued at $152,390,624.30. This represents a 5.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the completion of the sale, the director owned 27,087 shares of the company’s stock, valued at $4,331,753.04. The trade was a 15.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 288,052 shares of company stock valued at $46,878,483. Company insiders own 28.48% of the company’s stock.

Reddit Company 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.