ZEGA Investments LLC Sells 4,051 Shares of Reddit Inc. $RDDT

ZEGA Investments LLC trimmed its position in Reddit Inc. (NYSE:RDDT) by 73.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,494 shares of the company’s stock after selling 4,051 shares during the quarter. ZEGA Investments LLC’s holdings in Reddit were worth $259,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Capital World Investors purchased a new position in shares of Reddit during the fourth quarter valued at $1,293,258,000. State Street Corp raised its holdings 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 acquiring an additional 149,401 shares in the last quarter. Geode Capital Management LLC lifted its stake in Reddit by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company’s stock worth $546,789,000 after acquiring an additional 106,821 shares during the period. Morgan Stanley lifted its stake in Reddit by 11.4% in the fourth quarter. Morgan Stanley now owns 2,372,443 shares of the company’s stock worth $545,354,000 after acquiring an additional 242,709 shares during the period. Finally, Invesco Ltd. grew its holdings in Reddit by 36.7% during the 4th quarter. Invesco Ltd. now owns 2,033,626 shares of the company’s stock worth $467,470,000 after acquiring an additional 545,685 shares in the last quarter.

Reddit Stock Down 1.5%

RDDT stock opened at $155.68 on Friday. The stock has a market capitalization of $29.95 billion, a PE ratio of 36.20, a price-to-earnings-growth ratio of 0.73 and a beta of 2.02. Reddit Inc. has a 52 week low of $119.27 and a 52 week high of $282.95. The firm has a 50 day moving average of $170.83 and a 200 day moving average of $158.83.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30. The business had revenue of $804.91 million for the quarter, compared to analyst estimates of $731.00 million. Reddit had a net margin of 31.35% and a return on equity of 29.02%. Reddit’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.45 EPS. On average, equities research analysts expect that Reddit Inc. will post 5.27 earnings per share for the current year.

Insider Activity at Reddit

In related news, CEO Steve Huffman sold 18,000 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $148.02, for a total value of $2,664,360.00. Following the completion of the transaction, the chief executive officer owned 336,432 shares in the company, valued at $49,798,664.64. This trade represents a 5.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert A. Sauerberg sold 5,128 shares of Reddit stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, the director directly owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 210,102 shares of company stock valued at $36,375,252 over the last three months. 28.48% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have commented on RDDT. DA Davidson reissued a “buy” rating and set a $200.00 target price on shares of Reddit in a research report on Thursday, July 23rd. Citigroup reaffirmed a “market outperform” rating on shares of Reddit in a research report on Monday, August 24th. Wells Fargo & Company cut their price objective on shares of Reddit from $187.00 to $142.00 and set an “equal weight” rating on the stock in a report on Friday, July 31st. Piper Sandler reissued an “overweight” rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a report on Friday, July 31st. Finally, Evercore reissued an “outperform” rating and issued a $265.00 price objective on shares of Reddit in a research note on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Reddit currently has an average rating of “Moderate Buy” and an average target price of $221.10.

Key Stories Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Analysts at Baird argued that the market has already priced in the potential downside from Reddit’s two AI data-licensing agreements, which expire next year. The view helped support a recent rally by reducing concern that Google or other partners could fail to renew. Reddit Rallies 7% as Baird Says Renewal Risk Is Already Priced In
• Positive Sentiment: A bullish investment analysis cited Reddit’s rapid earnings growth, expanding margins, rising advertising revenue, stronger international and small-business channels, and improved conversion from Reddit Max. It estimated fair value of $230 and said AI data licensing could provide additional long-term upside. Reddit: Rapid Earnings Growth With Room For An AI Expansion
• Positive Sentiment: Reddit was identified as a top-ranked momentum stock by Zacks. Separately, an AI-focused stock analysis described Reddit’s human-generated content as a potentially valuable source of training data for large language models and said the chart could be positioned for an upside breakout. Reddit Is a Top-Ranked Momentum Stock
• Neutral Sentiment: Reddit’s latest quarterly results provide a fundamental backdrop: revenue rose 61% year over year to $804.9 million, while earnings per share of $1.25 exceeded the $0.95 consensus estimate. However, analysts have also cited recent search-traffic volatility and valuation concerns as reasons for the stock’s pullback. Should You Hold on to RDDT Stock Despite Its Dip
• Negative Sentiment: CEO Steve Huffman sold 18,000 shares worth approximately $2.66 million at an average price of $148.02. The transaction was made under a pre-arranged Rule 10b5-1 plan, limiting its signaling value, but it still adds an overhang after several similar sales.

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.