ZEGA Investments LLC Lowers Stake in Reddit Inc. $RDDT

ZEGA Investments LLC reduced its position in Reddit Inc. (NYSE:RDDT) by 73.1% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). 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 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of RDDT. Truist Financial Corp raised its stake in Reddit by 67.7% during the fourth quarter. Truist Financial Corp now owns 15,659 shares of the company’s stock valued at $3,600,000 after purchasing an additional 6,321 shares in the last quarter. Swiss Life Asset Management Ltd grew its stake in shares of Reddit by 63.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company’s stock worth $7,357,000 after buying an additional 12,398 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of Reddit by 21.8% in the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after buying an additional 280,030 shares in the last quarter. Handelsbanken Fonder AB grew its stake in shares of Reddit by 22.9% in the 4th quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company’s stock worth $8,505,000 after buying an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. increased its holdings in shares of Reddit by 326,400.0% in the 4th quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company’s stock worth $7,505,000 after buying an additional 32,640 shares during the last quarter.

Analyst Ratings Changes

Several brokerages have recently issued reports on RDDT. Deutsche Bank Aktiengesellschaft set a $200.00 target price on shares of Reddit in a research report on Friday, July 31st. Zacks Research lowered Reddit from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 25th. Citigroup restated a “market outperform” rating on shares of Reddit in a research report on Monday, August 24th. UBS Group reaffirmed a “buy” rating on shares of Reddit in a research note on Friday, July 31st. Finally, Morgan Stanley dropped their target price on Reddit from $240.00 to $210.00 and set an “overweight” rating for the company in a report on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat, Reddit currently has a consensus rating of “Moderate Buy” and an average target price of $221.10.

Insiders Place Their Bets

In other Reddit news, 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 value of $820,069.76. Following the sale, the director owned 27,087 shares in the company, valued at $4,331,753.04. This trade represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Steve Huffman sold 18,000 shares of the 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 sale, the chief executive officer owned 336,432 shares in the company, valued at approximately $49,798,664.64. The trade was a 5.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 210,102 shares of company stock valued at $36,375,252 over the last quarter. 28.48% of the stock is currently owned by insiders.

More Reddit News

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.

Reddit Trading Down 1.5%

Shares of NYSE:RDDT opened at $155.68 on Friday. The company has a market capitalization of $29.95 billion, a price-to-earnings ratio of 36.20, a PEG ratio of 0.73 and a beta of 2.02. Reddit Inc. has a 12 month low of $119.27 and a 12 month high of $282.95. The firm’s 50-day moving average is $170.83 and its 200 day moving average is $158.83.

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

Reddit Company Profile

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.