Sanctuary Advisors LLC Sells 2,859 Shares of Reddit Inc. $RDDT

Sanctuary Advisors LLC decreased its holdings in Reddit Inc. (NYSE:RDDT) by 53.5% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 2,489 shares of the company’s stock after selling 2,859 shares during the quarter. Sanctuary Advisors LLC’s holdings in Reddit were worth $335,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Reddit by 8.9% during the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock worth $3,062,339,000 after purchasing an additional 1,083,540 shares during the period. Capital World Investors bought a new stake in shares of Reddit in the fourth quarter valued at approximately $1,293,258,000. State Street Corp boosted its stake in shares of Reddit by 6.0% in the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock valued at $604,864,000 after buying an additional 149,401 shares during the period. Geode Capital Management LLC grew its position in Reddit by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after buying an additional 106,821 shares in the last quarter. Finally, Morgan Stanley grew its position in Reddit by 11.4% during the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock worth $545,354,000 after buying an additional 242,709 shares in the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q2 revenue rose 61% year over year to $804.9 million, exceeding the $731 million consensus estimate, while adjusted earnings of $1.25 per share surpassed expectations of approximately $0.95. Net profit reached $253 million, compared with $0.45 per share a year earlier. Reddit Q2 earnings report
• Positive Sentiment: Reddit forecast third-quarter revenue of $860 million to $870 million, above the $829.7 million analyst consensus. Management said AI-powered advertising tools are helping attract marketers and support commercial momentum. Reuters report on Reddit guidance
• Positive Sentiment: KeyCorp upgraded Reddit to “Strong Buy,” adding to recent bullish analyst coverage ahead of the earnings release. KeyCorp upgrade report
• Neutral Sentiment: CEO Steve Huffman argued that Google’s AI Overviews cannot yet replace the value of traditional “10 blue links,” but acknowledged that changes to search are affecting the broader web ecosystem. Reddit CEO comments on Google AI Overviews
• Negative Sentiment: Investors remain worried that Google’s AI search summaries are reducing referrals to Reddit. Management described search traffic as “choppy,” and reports suggested Reddit could reconsider its roughly $60 million-a-year Google content deal if AI-driven search continues to divert traffic. Reddit search referral report
• Negative Sentiment: U.S. user growth showed signs of slowing, increasing uncertainty about future engagement, advertising reach and the sustainability of Reddit’s elevated valuation. Consequently, the strong earnings “beat” did not prevent shares from retreating as AI-search risks dominated investor sentiment. TechCrunch analysis of Reddit earnings

Insider Transactions at Reddit

In related news, COO Jennifer L. Wong sold 39,167 shares of the firm’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $158.52, for a total value of $6,208,752.84. Following the sale, the chief operating officer directly owned 1,088,451 shares of the company’s stock, valued at $172,541,252.52. This trade represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 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 dated Monday, June 15th. The shares were sold at an average price of $178.26, for a total value of $3,208,680.00. Following the completion of the transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,636,083.64. This represents a 4.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 169,141 shares of company stock valued at $28,680,845. Corporate insiders own 28.48% of the company’s stock.

Reddit Price Performance

Shares of RDDT opened at $178.53 on Friday. Reddit Inc. has a one year low of $119.27 and a one year high of $282.95. The company has a market cap of $34.37 billion, a P/E ratio of 51.01 and a beta of 1.93. The firm has a 50 day simple moving average of $176.74 and a two-hundred day simple moving average of $165.09.

Reddit (NYSE:RDDT) last released its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping the consensus estimate 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 return on equity of 25.48% and a net margin of 28.60%.The company’s quarterly revenue was up 61.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.45 earnings per share. On average, analysts expect that Reddit Inc. will post 4.85 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

RDDT has been the topic of a number of recent research reports. Wedbush restated an “outperform” rating on shares of Reddit in a research note on Thursday, July 23rd. Citigroup reiterated a “market outperform” rating on shares of Reddit in a research report on Tuesday, May 26th. Weiss Ratings reissued a “hold (c)” rating on shares of Reddit in a report on Friday, May 8th. Piper Sandler restated an “overweight” rating and issued a $215.00 price target on shares of Reddit in a research report on Thursday, July 9th. Finally, Zacks Research raised Reddit from a “hold” rating to a “strong-buy” rating in a research note on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, Reddit presently has a consensus rating of “Moderate Buy” and a consensus price target of $232.23.

Reddit 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.