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

Retirement Systems of Alabama bought a new stake in Reddit Inc. (NYSE:RDDT) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 247,048 shares of the company’s stock, valued at approximately $35,190,000. Retirement Systems of Alabama owned approximately 0.13% of Reddit as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of RDDT. Sunbelt Securities Inc. raised its position in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock worth $26,000 after buying an additional 91 shares in the last quarter. Ascentis Independent Advisors acquired a new stake in shares of Reddit in the 1st quarter worth approximately $30,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after acquiring an additional 64 shares in the last quarter. Beacon Investment Advisory Services Inc. bought a new position in shares of Reddit in the second quarter valued at approximately $35,000. Finally, Root Financial Partners LLC bought a new position in shares of Reddit in the third quarter valued at approximately $41,000.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Huffman sold 18,000 shares of Reddit 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 transaction, the chief executive officer owned 373,814 shares in the company, valued at approximately $66,598,702.24. The trade was a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mary Gale sold 4,000 shares of the company’s stock in a transaction on Friday, November 6th. The shares were sold at an average price of $96.00, for a total value of $384,000.00. Following the completion of the transaction, the director directly owned 11,181 shares in the company, valued at $1,073,376. This represents a 26.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 295,052 shares of company stock worth $47,550,483. 28.48% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts recently commented on RDDT shares. Piper Sandler lowered their price objective on shares of Reddit from $195.00 to $145.00 in a research note on Friday, October 30th. President Capital cut their target price on Reddit from $207.00 to $199.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. Wells Fargo & Company cut their target price on Reddit from $142.00 to $110.00 and set an “equal weight” rating for the company in a research report on Friday, October 30th. Deutsche Bank Aktiengesellschaft decreased their price target on Reddit from $200.00 to $165.00 and set a “buy” rating for the company in a research note on Friday, October 30th. Finally, BNP Paribas Exane lowered their price target on Reddit from $180.00 to $110.00 in a research report on Friday, October 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Reddit has an average rating of “Moderate Buy” and a consensus target price of $180.00.

Reddit Trading Down 2.3%

NYSE:RDDT opened at $98.48 on Wednesday. Reddit Inc. has a twelve month low of $89.28 and a twelve month high of $263.50. The company has a 50-day moving average of $142.35 and a 200-day moving average of $155.53. The firm has a market cap of $19.02 billion, a price-to-earnings ratio of 20.10, a price-to-earnings-growth ratio of 0.41 and a beta of 2.28.

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

Key Stories Impacting 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

About Reddit

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.