Mirador Capital Partners LP Makes New Investment in Reddit Inc. $RDDT

Mirador Capital Partners LP acquired a new stake in shares of Reddit Inc. (NYSE:RDDT) in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 10,306 shares of the company’s stock, valued at approximately $1,789,000.

A number of other institutional investors have also recently made changes to their positions in the company. Sunbelt Securities Inc. lifted its position in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after buying an additional 91 shares in the last quarter. Ascentis Independent Advisors purchased a new position in Reddit during the 1st quarter valued at approximately $30,000. LOM Asset Management Ltd bought a new stake in Reddit in the 4th quarter worth approximately $33,000. Geneos Wealth Management Inc. increased its stake in Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock worth $39,000 after acquiring an additional 286 shares during the last quarter. Finally, V Square Quantitative Management LLC bought a new stake in Reddit in the 1st quarter worth approximately $43,000.

Reddit Trading Down 3.0%

Shares of RDDT opened at $155.17 on Thursday. The company’s fifty day simple moving average is $177.30 and its 200-day simple moving average is $162.46. The company has a market cap of $29.87 billion, a P/E ratio of 36.09, a P/E/G ratio of 0.54 and a beta of 2.03. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.30. The firm had revenue of $804.91 million during the quarter, compared to analysts’ expectations of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. The firm’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.45 EPS. Analysts predict that Reddit Inc. will post 5.19 earnings per share for the current fiscal year.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: An analyst upgrade helped support Reddit’s shares, with the brokerage citing the company’s growth prospects and improving fundamentals. Reddit Trading Higher Following Analyst Upgrade
• Positive Sentiment: Reddit’s second-quarter performance was strong: revenue rose 61% year over year to $804.9 million, earnings exceeded estimates, advertising revenue increased 64%, and average revenue per user rose 24%. Management also issued third-quarter revenue and adjusted EBITDA guidance above consensus. Reddit Q2 Review
• Positive Sentiment: New AI-powered moderation and abuse-prevention tools could make it easier for new users to participate, reduce spam and scraping, and improve community quality over time. Reddit AI Moderation Tools
• Neutral Sentiment: Several analysts and commentators argue that the post-earnings selloff was excessive, pointing to strong free cash flow, profitability and Reddit’s expanding digital advertising opportunity. These views may help stabilize sentiment but do not remove the company’s execution risks. Reddit Sell-Off Analysis
• Negative Sentiment: Flat growth in U.S. daily logged-in users was the main concern following earnings. Investors fear that weaker domestic user expansion could eventually limit advertising growth, despite higher monetization per user. Reddit U.S. User Growth Concerns
• Negative Sentiment: Investors remain concerned that search-engine referral changes and Reddit’s dependence on external traffic could pressure user acquisition and engagement, helping explain the sharp post-earnings decline. Reddit Post-Earnings Selloff
• Negative Sentiment: A law firm is investigating Reddit on behalf of long-term shareholders, introducing potential litigation and reputational risk after the recent stock decline. Reddit Shareholder Investigation

Insiders Place Their Bets

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at $64,718,417.82. The trade was a 4.59% decrease in their ownership of the stock. 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, CAO Michelle Marie Reynolds sold 808 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares in the company, valued at approximately $3,012,000. This represents a 5.09% 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 sold a total of 151,141 shares of company stock valued at $25,588,445 over the last 90 days. Insiders own 28.48% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Cantor Fitzgerald lowered their target price on Reddit from $200.00 to $170.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. The Goldman Sachs Group restated a “neutral” rating and issued a $200.00 price target on shares of Reddit in a research report on Friday, May 1st. Wells Fargo & Company decreased their price target 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. Telsey Advisory Group set a $240.00 price objective on shares of Reddit in a research report on Friday, July 31st. Finally, B. Riley Financial lifted their price objective on shares of Reddit from $250.00 to $270.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $220.90.

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.