Reddit Inc. $RDDT Shares Newly Acquired by Retirement Systems of Alabama

Retirement Systems of Alabama acquired a new stake in shares of Reddit Inc. (NYSE:RDDT) in the third quarter, Holdings Channel reports. The fund acquired 247,048 shares of the company’s stock, valued at approximately $35,190,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Fulcrum Asset Management LLP purchased a new stake in shares of Reddit in the 3rd quarter valued at approximately $305,000. Allspring Global Investments Holdings LLC grew its position in Reddit by 224.1% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 8,588 shares of the company’s stock worth $1,284,000 after purchasing an additional 5,938 shares in the last quarter. Brighton Jones LLC grew its position in Reddit by 3.1% during the 3rd quarter. Brighton Jones LLC now owns 29,673 shares of the company’s stock worth $4,227,000 after purchasing an additional 891 shares in the last quarter. Ethic Inc. grew its position in Reddit by 9.0% during the 3rd quarter. Ethic Inc. now owns 8,829 shares of the company’s stock worth $1,258,000 after purchasing an additional 731 shares in the last quarter. Finally, Pictet Asset Management Holding SA raised its stake in Reddit by 16.2% during the 3rd quarter. Pictet Asset Management Holding SA now owns 50,120 shares of the company’s stock valued at $7,139,000 after purchasing an additional 6,982 shares during the period.

Wall Street Analyst Weigh In

RDDT has been the subject of a number of research analyst reports. The Goldman Sachs Group reduced their target price on Reddit from $215.00 to $140.00 in a report on Friday, October 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Reddit in a report on Tuesday, November 3rd. Cantor Fitzgerald lowered their price target on Reddit from $170.00 to $120.00 and set a “neutral” rating on the stock in a report on Friday, October 30th. Citizens Jmp lowered Reddit from a “market outperform” rating to a “market perform” rating in a research report on Friday, October 30th. Finally, Morgan Stanley reduced their price objective on Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a research note on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $180.00.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Huffman sold 18,000 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $178.16, for a total value of $3,206,880.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares of the company’s stock, valued at $66,598,702.24. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director owned 27,087 shares in the company, valued at approximately $4,331,753.04. This trade represents a 15.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 295,052 shares of company stock worth $47,550,483 in the last ninety days. Insiders own 28.48% of the company’s stock.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit launched Reddit Reviews, which uses AI to organize community discussions into product reviews and key takeaways. The feature could make Reddit more useful for product research and create opportunities to convert user activity into revenue. Reddit is turning user conversations into AI-powered product reviews
• Positive Sentiment: A Seeking Alpha analysis argues that the selloff may discount the potential value of conversion traffic, suggesting investors may be underestimating Reddit’s ability to turn visitors into users and customers. Reddit’s 29% Earnings Selloff May Be Overlooking Conversion Traffic Potential
• Neutral Sentiment: Guggenheim cut its price target to $140 from $170 but maintained a Buy rating. The lower target reflects a more cautious outlook, while the rating indicates the firm still sees potential upside. Guggenheim stock recommendations
• Negative Sentiment: Google search traffic is a key concern: Reddit’s COO said more than 80% of monetization comes from logged-in users, leaving the remaining portion more exposed to Google’s pressure on traffic. That risk may contribute to investor worries about future growth. Reddit COO Says “Over 80% of Our Monetization” Is Logged In. Google Is Squeezing the Rest
• Negative Sentiment: Two law firms announced securities investigations following the reported 29.2% share drop. These are investigations, not findings of wrongdoing, but the announcements add legal uncertainty and negative headlines. Block & Leviton investigation announcement Kirby McInerney investigation announcement
• Negative Sentiment: Director Mary Gale sold 4,000 shares for $384,000, reducing her reported holdings by 26.35%. Insider sales can have varied motivations, but may add to cautious sentiment. SEC Form 4 filing

Reddit Price Performance

RDDT opened at $98.48 on Wednesday. The company has a market capitalization of $19.02 billion, a PE ratio of 20.10, a price-to-earnings-growth ratio of 0.41 and a beta of 2.28. Reddit Inc. has a fifty-two week low of $89.28 and a fifty-two week high of $263.50. The business has a 50-day moving average of $142.35 and a 200-day moving average of $155.53.

Reddit (NYSE:RDDT) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. During the same quarter in the previous year, the business posted $0.80 EPS. The firm’s quarterly revenue was up 53.0% compared to the same quarter last year. On average, equities research analysts expect that Reddit Inc. will post 5.42 earnings per share for the current fiscal year.

Reddit Company Profile

Reddit, Inc. operates Reddit, an online platform where users share posts, discuss topics and participate in communities known as subreddits. Members can submit text, images, videos and links, comment on posts, and vote on content, helping shape what appears in each community. The company generates revenue primarily through advertising and also offers paid subscriptions and other products. Reddit serves users and advertisers around the world through its website and mobile applications. Reddit was founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz.