Stephens Inc. AR Increases Position in Reddit Inc. $RDDT

Stephens Inc. AR raised its stake in shares of Reddit Inc. (NYSE:RDDT) by 659.6% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 13,423 shares of the company’s stock after buying an additional 11,656 shares during the quarter. Stephens Inc. AR’s holdings in Reddit were worth $3,087,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in RDDT. GAMMA Investing LLC grew its position in Reddit by 8,650.0% during the 3rd quarter. GAMMA Investing LLC now owns 175 shares of the company’s stock valued at $40,000 after purchasing an additional 173 shares during the last quarter. Financial Perspectives Inc bought a new position in shares of Reddit in the second quarter worth approximately $34,000. Advisors Asset Management Inc. grew its holdings in shares of Reddit by 68.2% during the second quarter. Advisors Asset Management Inc. now owns 365 shares of the company’s stock valued at $55,000 after buying an additional 148 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Reddit by 344.6% during the first quarter. Geneos Wealth Management Inc. now owns 369 shares of the company’s stock valued at $39,000 after acquiring an additional 286 shares in the last quarter. Finally, Western Pacific Wealth Management LP purchased a new position in Reddit in the 2nd quarter worth approximately $60,000.

Reddit News Summary

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 Trading Up 1.1%

Shares of Reddit stock opened at $231.33 on Friday. The firm has a market cap of $43.84 billion, a PE ratio of 132.95, a PEG ratio of 1.54 and a beta of 2.17. The stock has a 50 day moving average of $223.41 and a 200 day moving average of $210.31. Reddit Inc. has a 12 month low of $79.75 and a 12 month high of $282.95.

Reddit (NYSE:RDDT) last issued its quarterly earnings data on Thursday, October 30th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.30. The business had revenue of $584.91 million for the quarter, compared to analysts’ expectations of $546.65 million. Reddit had a return on equity of 14.94% and a net margin of 18.33%.The company’s revenue for the quarter was up 67.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.16 EPS. As a group, equities research analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts have commented on the company. Needham & Company LLC reiterated a “buy” rating and set a $300.00 target price on shares of Reddit in a research note on Monday, December 29th. Sanford C. Bernstein upped their target price on shares of Reddit from $190.00 to $210.00 and gave the company a “market perform” rating in a research note on Friday, October 31st. Evercore ISI assumed coverage on Reddit in a research note on Monday. They issued an “outperform” rating and a $320.00 price target on the stock. Bank of America increased their price target on shares of Reddit from $180.00 to $210.00 and gave the stock a “neutral” rating in a research report on Friday, October 31st. Finally, Argus set a $300.00 target price on shares of Reddit in a research note on Friday, January 9th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $238.57.

Insider Activity at Reddit

In other Reddit news, CTO Christopher Brian Slowe sold 14,000 shares of Reddit stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $253.88, for a total value of $3,554,320.00. Following the completion of the transaction, the chief technology officer directly owned 169,694 shares of the company’s stock, valued at $43,081,912.72. This trade represents a 7.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Benjamin Seong Lee sold 3,320 shares of the business’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $260.22, for a total transaction of $863,930.40. Following the completion of the sale, the insider owned 62,608 shares in the company, valued at approximately $16,291,853.76. This trade represents a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 505,470 shares of company stock valued at $109,018,861 over the last quarter. 34.25% of the stock is currently owned by insiders.

Reddit 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.