Dimensional Fund Advisors LP Purchases 21,906 Shares of Reddit Inc. $RDDT

Dimensional Fund Advisors LP grew its holdings in Reddit Inc. (NYSE:RDDT) by 5.6% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 411,802 shares of the company’s stock after purchasing an additional 21,906 shares during the quarter. Dimensional Fund Advisors LP’s holdings in Reddit were worth $55,409,000 as of its most recent filing with the SEC.

Other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company’s stock valued at $3,062,339,000 after buying an additional 1,083,540 shares during the last quarter. Capital World Investors bought a new position in Reddit in the 4th quarter worth approximately $1,293,258,000. State Street Corp lifted its holdings in shares of Reddit by 6.0% during the fourth quarter. State Street Corp now owns 2,631,332 shares of the company’s stock worth $604,864,000 after buying an additional 149,401 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of 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 during the last quarter. Finally, Morgan Stanley lifted its holdings in shares of 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 during the last quarter.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year, while earnings of $1.25 per share exceeded analysts’ estimates. Advertising demand, higher pricing and user growth supported stronger monetization. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, above Wall Street’s approximately $830 million expectation. AI-powered advertising tools, product upgrades and continued ad growth are expected to support momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish views: Truist raised its price target to $275 and maintained a buy rating, while Wedbush kept an outperform rating with a $221 target. KeyCorp also upgraded Reddit to “strong buy.” Reddit analyst actions
• Neutral Sentiment: Reddit is testing a “video Reddit” experience that could let users watch videos and listen to posts in the background, potentially increasing engagement and creating new advertising opportunities over time. Reddit is testing a new way to watch and listen to its viral posts
• Negative Sentiment: The primary selloff trigger was management’s warning that search referrals have become “choppy” or volatile. Investors fear Google’s AI-generated search summaries and other AI search tools could reduce traffic to Reddit, weakening future user growth, engagement and advertising monetization. Reddit Stock Plunges on Choppy Search Referrals Warning
• Negative Sentiment: Investors were also disappointed by slower U.S. daily-user growth and the lack of announced new AI licensing deals, raising questions about Reddit’s longer-term traffic outlook. JPMorgan and Cantor Fitzgerald responded by lowering their price targets to $185 and $170, respectively, while assigning neutral ratings. Reddit earnings: why are investors concerned despite solid headline numbers

Reddit Stock Down 21.0%

NYSE RDDT opened at $140.67 on Friday. The stock has a market cap of $27.08 billion, a P/E ratio of 32.71 and a beta of 1.93. The company’s 50-day simple moving average is $176.72 and its 200 day simple moving average is $164.92. Reddit Inc. has a twelve month low of $119.27 and a twelve month high of $282.95.

Reddit (NYSE:RDDT) last announced 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 29.97%. The company’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.45 earnings per share. Research analysts anticipate that Reddit Inc. will post 4.85 earnings per share for the current year.

Insider Transactions at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $178.26, for a total value of $3,208,680.00. Following the sale, the chief executive officer owned 373,814 shares of the company’s stock, valued at $66,636,083.64. The trade was a 4.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $158.52, for a total value of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at $172,541,252.52. This trade represents a 3.47% decrease in their ownership of the stock. 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 ninety days, insiders sold 169,141 shares of company stock valued at $28,680,845. Corporate insiders own 28.48% of the company’s stock.

Wall Street Analyst Weigh In

RDDT has been the topic of several research analyst reports. Wall Street Zen upgraded shares of Reddit from a “hold” rating to a “buy” rating in a research note on Saturday. Robert W. Baird set a $185.00 target price on shares of Reddit in a research note on Friday. KeyCorp began coverage on shares of Reddit in a report on Wednesday. They issued an “overweight” rating and a $225.00 price target for the company. Telsey Advisory Group set a $240.00 price target on shares of Reddit in a research report on Friday. Finally, Guggenheim restated a “buy” rating on shares of Reddit in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Reddit has a consensus rating of “Moderate Buy” and a consensus price target of $223.16.

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.