According to its latest SEC filing, GatePass Capital LLC purchased 5,022 shares of Reddit Inc. during the third quarter, establishing a new position valued at approximately $1.16 million. This move marks GatePass’s first reported stake in the social media platform, reflecting growing institutional interest in the company’s unique community-driven business model.

Several large asset managers also adjusted their holdings in Reddit during the first quarter. NewEdge Advisors LLC increased its position by 143.3%, acquiring an additional 4,701 shares to hold 7,982 shares worth $0.84 million. UBS Asset Management Americas more than doubled its stake, adding 111,780 shares to reach 216,960 shares valued at $22.76 million. Focus Partners Wealth and Empowered Funds LLC raised their positions by 40.8% and initiated a new stake worth $0.21 million, respectively, while Geneos Wealth Management grew its holdings by 344.6%.

Reddit insiders have recently reduced their holdings, with COO Jennifer L. Wong selling 39,167 shares in December and director Benjamin Seong Lee offloading 3,320 shares in January. Over the past ninety days, insiders sold a total of 505,470 shares valued at approximately $109 million, representing 34.25% of the company’s insider-owned stock. These transactions highlight a notable shift in insider conviction ahead of the upcoming fourth-quarter results.

In its third-quarter report, Reddit delivered earnings per share of $0.80, surpassing consensus estimates by $0.30, and generated revenue of $584.9 million, exceeding forecasts by $38.3 million and representing a 67.9% year-over-year increase. The company posted a net margin of 18.3% and a return on equity of 14.9%. Following the release, research firms have adopted a cautious outlook: three analysts maintain strong-buy recommendations, fifteen have buy ratings, twelve hold, and one sell, resulting in a consensus rating of Moderate Buy with an average target above current levels.