American Century Companies Inc. Buys 2,987 Shares of Reddit Inc. $RDDT

Key Points

• American Century Companies Inc. increased its stake in Reddit Inc. by 35% during the first quarter, bringing its total holdings to $1.21 million after acquiring an additional 2,987 shares.
• In the last three months, insider sales included 486,777 shares worth approximately $82.2 million, indicating significant selling activity among company insiders.
• Recent analyst ratings for Reddit show a mix of optimism and caution, with price targets ranging from $145 to $225 and a consensus rating of "Moderate Buy".

American Century Companies Inc. lifted its position in Reddit Inc. (NYSE:RDDT - Free Report) by 35.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 11,523 shares of the company's stock after acquiring an additional 2,987 shares during the quarter. American Century Companies Inc.'s holdings in Reddit were worth $1,209,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. CWM LLC raised its stake in Reddit by 100.0% during the 1st quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after acquiring an additional 128 shares in the last quarter. Fourth Dimension Wealth LLC acquired a new stake in shares of Reddit during the fourth quarter worth $49,000. Chelsea Counsel Co. acquired a new stake in shares of Reddit during the fourth quarter worth $49,000. Stone House Investment Management LLC acquired a new stake in shares of Reddit during the first quarter worth $31,000. Finally, CoreCap Advisors LLC raised its position in shares of Reddit by 3,500.0% during the fourth quarter. CoreCap Advisors LLC now owns 360 shares of the company's stock worth $59,000 after purchasing an additional 350 shares during the period.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on RDDT. Raymond James Financial reiterated a "strong-buy" rating and set a $225.00 price target (up previously from $175.00) on shares of Reddit in a report on Friday, August 1st. Argus began coverage on Reddit in a report on Monday, August 18th. They set a "buy" rating and a $250.00 price target on the stock. Bank of America lifted their price target on Reddit from $130.00 to $150.00 and gave the company a "neutral" rating in a report on Wednesday, July 30th. Citigroup boosted their target price on Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research note on Tuesday, June 24th. Finally, Wolfe Research raised Reddit to an "outperform" rating in a research report on Sunday, August 3rd. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $175.38.

Insider Buying and Selling

In other news, CEO Steve Ladd Huffman sold 124,409 shares of the firm's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $124.45, for a total value of $15,482,700.05. Following the transaction, the chief executive officer directly owned 546,133 shares in the company, valued at $67,966,251.85. This trade represents a 18.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Jennifer L. Wong sold 40,967 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.38, for a total value of $9,028,307.46. Following the completion of the transaction, the chief operating officer owned 120,033 shares in the company, valued at $26,452,872.54. This represents a 25.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 516,777 shares of company stock valued at $88,790,076 over the last 90 days. Company insiders own 34.25% of the company's stock.

Reddit Trading Up 3.5%

NYSE RDDT traded up $8.08 during trading hours on Friday, reaching $240.19. 5,551,228 shares of the company's stock were exchanged, compared to its average volume of 5,904,451. The stock has a market cap of $44.95 billion, a PE ratio of 218.35, a price-to-earnings-growth ratio of 3.68 and a beta of 2.40. Reddit Inc. has a one year low of $55.25 and a one year high of $253.14. The firm has a fifty day moving average of $186.96 and a 200-day moving average of $143.13.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.20 by $0.25. The business had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. Reddit had a return on equity of 9.93% and a net margin of 12.97%.Reddit's revenue for the quarter was up 77.9% on a year-over-year basis. During the same period in the prior year, the company earned ($0.06) EPS. Reddit has set its Q3 2025 guidance at EPS. As a group, research analysts forecast that Reddit Inc. will post 1.12 EPS for the current year.

Reddit Profile

Reddit, Inc operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.