Stephens Investment Management Group LLC Decreases Stake in Reddit Inc. $RDDT

Stephens Investment Management Group LLC cut its stake in shares of Reddit Inc. (NYSE:RDDT) by 32.5% in the third quarter, according to the company in its most recent disclosure with the 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 owned approximately 0.12% of Reddit worth $51,279,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Teacher Retirement System of Texas lifted its holdings in Reddit by 880.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 94,676 shares of the company’s stock worth $14,255,000 after buying an additional 85,020 shares during the last quarter. Union Bancaire Privee UBP SA purchased a new position in shares of Reddit in the 2nd quarter valued at about $2,078,000. J. Safra Sarasin Holding AG acquired a new stake in shares of Reddit during the 2nd quarter worth about $226,000. Plato Investment Management Ltd raised its position in shares of Reddit by 120.2% during the 2nd quarter. Plato Investment Management Ltd now owns 2,970 shares of the company’s stock worth $446,000 after acquiring an additional 1,621 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey purchased a new stake in Reddit during the second quarter worth approximately $2,666,000.

Reddit Stock Up 1.1%

RDDT opened at $231.33 on Friday. The business has a 50 day moving average price of $223.41 and a two-hundred day moving average price of $210.31. The company has a market cap of $43.84 billion, a PE ratio of 132.95, a P/E/G ratio of 1.54 and a beta of 2.17. Reddit Inc. has a 52 week low of $79.75 and a 52 week high of $282.95.

Reddit (NYSE:RDDT) last announced its earnings results on Thursday, October 30th. The company reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.30. The company had revenue of $584.91 million for the quarter, compared to the consensus estimate of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company’s revenue was up 67.9% on a year-over-year basis. During the same period last year, the business posted $0.16 EPS. As a group, sell-side analysts expect that Reddit Inc. will post 1.12 EPS for the current fiscal year.

Reddit News Roundup

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.

Insider Activity

In other news, COO Jennifer L. Wong sold 63,427 shares of Reddit stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $192.72, for a total value of $12,223,651.44. Following the sale, the chief operating officer owned 1,184,528 shares of the company’s stock, valued at $228,282,236.16. The trade was a 5.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Christopher Brian Slowe sold 24,000 shares of the business’s stock in a transaction dated Monday, November 24th. The stock was sold at an average price of $192.72, for a total transaction of $4,625,280.00. Following the transaction, the chief technology officer owned 175,694 shares in the company, valued at approximately $33,859,747.68. This trade represents a 12.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 505,470 shares of company stock valued at $109,018,861. Corporate insiders own 34.25% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RDDT. Raymond James Financial reissued a “strong-buy” rating and set a $250.00 price objective (up previously from $225.00) on shares of Reddit in a report on Monday, October 20th. Bank of America increased their target price on shares of Reddit from $180.00 to $210.00 and gave the company a “neutral” rating in a research report on Friday, October 31st. JMP Securities reissued a “market outperform” rating and issued a $300.00 price target on shares of Reddit in a research report on Friday, October 3rd. B. Riley restated a “buy” rating and issued a $245.00 price objective (up previously from $235.00) on shares of Reddit in a research note on Friday, October 31st. Finally, UBS Group set a $265.00 target price on Reddit in a research report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $238.57.

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.