GatePass Capital LLC Acquires New Shares in Reddit Inc. $RDDT

GatePass Capital LLC bought a new position in shares of Reddit Inc. (NYSE:RDDT) during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor bought 5,022 shares of the company’s stock, valued at approximately $1,155,000.

Several other large investors have also modified their holdings of the business. NewEdge Advisors LLC lifted its position in shares of Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company’s stock worth $837,000 after purchasing an additional 4,701 shares during the period. Empowered Funds LLC purchased a new position in Reddit during the first quarter valued at approximately $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Reddit by 106.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company’s stock worth $22,759,000 after buying an additional 111,780 shares in the last quarter. Focus Partners Wealth lifted its holdings in Reddit by 40.8% during the first quarter. Focus Partners Wealth now owns 10,224 shares of the company’s stock worth $1,073,000 after buying an additional 2,965 shares during the period. Finally, Geneos Wealth Management Inc. boosted its position in Reddit by 344.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after acquiring an additional 286 shares in the last quarter.

Insider Activity

In other Reddit news, insider Benjamin Seong Lee sold 3,320 shares of the business’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $260.22, for a total transaction of $863,930.40. Following the sale, the insider owned 62,608 shares in the company, valued at approximately $16,291,853.76. The trade was a 5.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $234.37, for a total value of $9,179,569.79. Following the completion of the transaction, the chief operating officer directly owned 1,184,528 shares in the company, valued at $277,617,827.36. This represents a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 505,470 shares of company stock valued at $109,018,861. 34.25% of the stock is owned by corporate insiders.

Reddit Stock Up 1.1%

RDDT opened at $231.33 on Friday. The company has a market cap of $43.84 billion, a P/E ratio of 132.95, a price-to-earnings-growth ratio of 1.55 and a beta of 2.17. The firm’s 50-day moving average price is $223.41 and its 200-day moving average price is $210.72. Reddit Inc. has a 52-week low of $79.75 and a 52-week high of $282.95.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million for the quarter, compared to the consensus estimate of $546.65 million. Reddit had a net margin of 18.33% and a return on equity of 14.94%. Reddit’s revenue was up 67.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.16 EPS. On average, research analysts anticipate that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Wall Street Zen lowered Reddit from a “buy” rating to a “hold” rating in a research report on Saturday, January 10th. Wells Fargo & Company boosted their target price on shares of Reddit from $186.00 to $207.00 and gave the stock an “equal weight” rating in a report on Monday, January 12th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Reddit in a research report on Wednesday, October 1st. UBS Group set a $265.00 price objective on shares of Reddit in a research report on Tuesday. Finally, Cantor Fitzgerald initiated coverage on shares of Reddit in a research note on Thursday, January 8th. They set a “neutral” rating and a $240.00 price objective for the company. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $238.57.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strategic partnership: Emplifi integrated Reddit’s Enterprise API, positioning Reddit as a signal in a large marketing platform — this supports enterprise monetization and data-product adoption. Read More.
• Positive Sentiment: Analyst momentum: Wells Fargo raised its target price and Reddit’s momentum metrics surged into a high percentile, which likely attracted momentum and quant buyers. Read More.
• Neutral Sentiment: Earnings date set: Reddit will release Q4 and FY2025 results on Feb 5, giving investors a clear near‑term catalyst for revenue/ads guidance and SMB traction. Read More.
• Neutral Sentiment: Stock is widely watched: Zacks highlights RDDT as a stock drawing investor attention, which can amplify moves around news and analyst notes. Read More.
• Neutral Sentiment: Minor insider sale: Director Andrew Vollero sold 300 shares — a small, likely immaterial transaction. Read More.
• Negative Sentiment: Large insider sale: Reddit’s CFO sold nearly $960k of stock — sizable insider selling can spook investors and raise questions about near‑term conviction. Read More.
• Negative Sentiment: Analyst concerns on SMB ad checks: RBC flagged challenges with small‑business ad checks and mixed ad feedback, pressuring sentiment around ad revenue sustainability. Read More.
• Negative Sentiment: Mixed ad feedback: Multiple outlets report analysts warning of uneven advertiser feedback, which feeds worries about near‑term ad monetization and growth. Read More.
• Negative Sentiment: Recent price weakness: Coverage notes a sharp intraday drop recently and commentary calling the move a significant selloff, reflecting heightened volatility. Read More.
• Negative Sentiment: Broader market trigger: News that shook growth stocks (FDA delay for a major weight‑loss drug) contributed to a stumble in Reddit shares as risk‑on sentiment softened. Read More.
• Negative Sentiment: Retail investor mixed view: After a recent sharp down day, retail traders flagged trouble but some remain bullish — an indicator of potential short‑term volatility as sentiment rebalances. Read More.
• Negative Sentiment: Explanatory coverage: Multiple outlets ran pieces titled that Reddit is “nosediving”—the tone can amplify selling pressure among momentum traders. Read More.

About Reddit

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.