ARK Investment Management LLC Lowers Position in Reddit Inc. $RDDT

Key Points

• ARK Investment Management LLC has reduced its stake in Reddit Inc. (RDDT) by 30.1%, now holding 155,513 shares valued at approximately $23.4 million.
• Numerous institutional investors, including Alliancebernstein L.P. and Nordea Investment Management AB, have significantly increased their positions in Reddit during the second quarter.
• Recent analyst ratings for Reddit have shown mixed results, with Zacks Research downgrading the stock from "strong buy" to "hold," while other firms have maintained or raised their ratings and price targets.

ARK Investment Management LLC decreased its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 30.1% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 155,513 shares of the company's stock after selling 66,815 shares during the period. ARK Investment Management LLC owned about 0.08% of Reddit worth $23,416,000 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 made changes to their positions in RDDT. Alliancebernstein L.P. lifted its position in shares of Reddit by 103.0% during the 1st quarter. Alliancebernstein L.P. now owns 5,659,990 shares of the company's stock valued at $593,733,000 after buying an additional 2,871,232 shares in the last quarter. Nordea Investment Management AB lifted its position in shares of Reddit by 21,703.0% during the 2nd quarter. Nordea Investment Management AB now owns 1,060,935 shares of the company's stock valued at $164,021,000 after buying an additional 1,056,069 shares in the last quarter. Vanguard Group Inc. raised its stake in Reddit by 11.1% in the 1st quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock valued at $1,069,828,000 after purchasing an additional 1,017,162 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Reddit by 98.2% in the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after purchasing an additional 944,847 shares during the last quarter. Finally, Scge Management L.P. raised its stake in Reddit by 121.1% in the 1st quarter. Scge Management L.P. now owns 1,612,000 shares of the company's stock valued at $169,099,000 after purchasing an additional 883,000 shares during the last quarter.

Insiders Place Their Bets

In related news, CTO Christopher Brian Slowe sold 14,000 shares of the firm's stock in a transaction dated Wednesday, October 8th. The stock was sold at an average price of $200.81, for a total transaction of $2,811,340.00. Following the completion of the transaction, the chief technology officer directly owned 206,534 shares in the company, valued at $41,474,092.54. This trade represents a 6.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Jennifer L. Wong sold 30,741 shares of the firm's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $257.28, for a total value of $7,909,044.48. Following the transaction, the chief operating officer owned 1,295,968 shares of the company's stock, valued at $333,426,647.04. This trade represents a 2.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 366,500 shares of company stock valued at $83,829,951 over the last 90 days. Company insiders own 34.25% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on RDDT. Zacks Research downgraded Reddit from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 30th. The Goldman Sachs Group reissued a "neutral" rating and issued a $236.00 price objective on shares of Reddit in a research note on Tuesday, October 14th. Wells Fargo & Company increased their price objective on Reddit from $155.00 to $174.00 and gave the company a "cautious" rating in a research note on Tuesday, October 7th. Sanford C. Bernstein raised their target price on Reddit from $130.00 to $150.00 and gave the stock a "market perform" rating in a research note on Tuesday, July 22nd. Finally, Wall Street Zen raised Reddit from a "hold" rating to a "buy" rating in a research note on Sunday, September 7th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $214.17.

Reddit Trading Up 1.5%

Shares of NYSE:RDDT opened at $205.60 on Wednesday. The business has a 50-day moving average price of $227.66 and a 200 day moving average price of $164.23. The company has a market capitalization of $38.48 billion, a price-to-earnings ratio of 186.91, a PEG ratio of 3.09 and a beta of 2.23. Reddit Inc. has a 12-month low of $76.54 and a 12-month high of $282.95.

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

Reddit Company 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.

Want to see what other hedge funds are holding RDDT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Reddit Inc. (NYSE:RDDT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.