Stephens Investment Management Group LLC Cuts Holdings in Reddit Inc. $RDDT

Stephens Investment Management Group LLC cut its holdings in Reddit Inc. (NYSE:RDDT) by 32.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 222,963 shares of the company’s stock after selling 107,287 shares during the quarter. Stephens Investment Management Group LLC’s holdings in Reddit were worth $51,279,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. ASR Vermogensbeheer N.V. lifted its holdings in Reddit by 2.1% in the third quarter. ASR Vermogensbeheer N.V. now owns 7,648 shares of the company’s stock valued at $1,759,000 after acquiring an additional 160 shares during the period. Cannon Global Investment Management LLC acquired a new position in shares of Reddit during the 3rd quarter worth $410,000. Wilmington Savings Fund Society FSB increased its holdings in shares of Reddit by 22.3% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 1,856 shares of the company’s stock valued at $427,000 after purchasing an additional 339 shares in the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its holdings in shares of Reddit by 19.4% in the 3rd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 24,600 shares of the company’s stock valued at $5,658,000 after purchasing an additional 4,000 shares in the last quarter. Finally, Stephens Inc. AR lifted its stake in shares of Reddit by 659.6% in the third quarter. Stephens Inc. AR now owns 13,423 shares of the company’s stock valued at $3,087,000 after purchasing an additional 11,656 shares during the period.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Strategic partnership: Emplifi integrated Reddit’s Enterprise API, positioning Reddit as a signal in a large marketing platform — this supports enterprise monetization and data-product adoption. Read More.
• Positive Sentiment: Analyst momentum: Wells Fargo raised its target price and Reddit’s momentum metrics surged into a high percentile, which likely attracted momentum and quant buyers. Read More.
• Neutral Sentiment: Earnings date set: Reddit will release Q4 and FY2025 results on Feb 5, giving investors a clear near?term catalyst for revenue/ads guidance and SMB traction. Read More.
• Neutral Sentiment: Stock is widely watched: Zacks highlights RDDT as a stock drawing investor attention, which can amplify moves around news and analyst notes. Read More.
• Neutral Sentiment: Minor insider sale: Director Andrew Vollero sold 300 shares — a small, likely immaterial transaction. Read More.
• Negative Sentiment: Large insider sale: Reddit’s CFO sold nearly $960k of stock — sizable insider selling can spook investors and raise questions about near?term conviction. Read More.
• Negative Sentiment: Analyst concerns on SMB ad checks: RBC flagged challenges with small?business ad checks and mixed ad feedback, pressuring sentiment around ad revenue sustainability. Read More.
• Negative Sentiment: Mixed ad feedback: Multiple outlets report analysts warning of uneven advertiser feedback, which feeds worries about near?term ad monetization and growth. Read More.
• Negative Sentiment: Recent price weakness: Coverage notes a sharp intraday drop recently and commentary calling the move a significant selloff, reflecting heightened volatility. Read More.
• Negative Sentiment: Broader market trigger: News that shook growth stocks (FDA delay for a major weight?loss drug) contributed to a stumble in Reddit shares as risk?on sentiment softened. Read More.
• Negative Sentiment: Retail investor mixed view: After a recent sharp down day, retail traders flagged trouble but some remain bullish — an indicator of potential short?term volatility as sentiment rebalances. Read More.
• Negative Sentiment: Explanatory coverage: Multiple outlets ran pieces titled that Reddit is “nosediving”—the tone can amplify selling pressure among momentum traders. Read More.

Reddit Stock Performance

RDDT stock opened at $231.33 on Friday. The stock’s 50 day moving average price is $223.41 and its 200 day moving average price is $210.31. The firm has a market cap of $43.84 billion, a P/E ratio of 132.95, a PEG ratio of 1.54 and a beta of 2.17. Reddit Inc. has a 1 year low of $79.75 and a 1 year high of $282.95.

Reddit (NYSE:RDDT) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.30. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company had revenue of $584.91 million during the quarter, compared to analysts’ expectations of $546.65 million. During the same period in the previous year, the firm posted $0.16 earnings per share. The business’s revenue for the quarter was up 67.9% compared to the same quarter last year. On average, research analysts predict that Reddit Inc. will post 1.12 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. JMP Securities restated a “market outperform” rating and set a $300.00 target price on shares of Reddit in a research report on Friday, October 3rd. Cannonball Research restated a “buy” rating on shares of Reddit in a report on Tuesday, September 23rd. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Reddit in a research note on Wednesday, October 1st. Evercore ISI assumed coverage on Reddit in a report on Monday. They set an “outperform” rating and a $320.00 price objective for the company. Finally, Wells Fargo & Company upped their target price on Reddit from $186.00 to $207.00 and gave the company an “equal weight” rating in a report on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $238.57.

Insider Activity

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the company’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $234.37, for a total value of $9,179,569.79. Following the transaction, the chief operating officer directly owned 1,184,528 shares in the company, valued at approximately $277,617,827.36. This represents a 3.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Christopher Brian Slowe sold 14,000 shares of the firm’s stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $253.88, for a total transaction of $3,554,320.00. Following the sale, the chief technology officer directly owned 169,694 shares in the company, valued at $43,081,912.72. This represents a 7.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 505,470 shares of company stock worth $109,018,861 in the last quarter. Corporate insiders own 34.25% of the company’s stock.

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.