Dimensional Fund Advisors LP Has $55.41 Million Holdings in Reddit Inc. $RDDT

Key Points

• Dimensional Fund Advisors increased its Reddit stake by 5.6% in the first quarter, bringing its holdings to 411,802 shares worth approximately $55.4 million, or 0.22% of the company.
• Reddit reported strong quarterly results, with revenue of $804.9 million—up 61% year over year—and earnings of $1.25 per share, exceeding analyst estimates. Management also forecast third-quarter revenue above Wall Street expectations.
• Despite strong results, concerns over volatile search referrals, slower U.S. daily-user growth and limited new AI licensing deals have pressured the stock. Analyst sentiment remains a “Moderate Buy,” with a consensus price target of $223.16.

Dimensional Fund Advisors LP raised its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 5.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 411,802 shares of the company's stock after acquiring an additional 21,906 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.22% of Reddit worth $55,409,000 at the end of the most recent quarter.

A number of other large investors also recently made changes to their positions in RDDT. Momentum Wealth Planning LLC boosted its holdings in shares of Reddit by 203.1% during the first quarter. Momentum Wealth Planning LLC now owns 15,338 shares of the company's stock worth $2,065,000 after purchasing an additional 10,278 shares during the period. SEB Asset Management AB acquired a new position in Reddit in the 1st quarter valued at approximately $7,590,000. Swiss National Bank lifted its position in Reddit by 7.1% in the 1st quarter. Swiss National Bank now owns 296,600 shares of the company's stock worth $39,937,000 after buying an additional 19,700 shares in the last quarter. Mediolanum International Funds Ltd lifted its position in Reddit by 67.4% in the 1st quarter. Mediolanum International Funds Ltd now owns 30,019 shares of the company's stock worth $3,726,000 after buying an additional 12,089 shares in the last quarter. Finally, Spartan Wealth Advisory Services LLC acquired a new stake in shares of Reddit during the 1st quarter valued at $1,553,000.

Reddit Price Performance

Reddit stock opened at $140.67 on Friday. The company has a market capitalization of $27.08 billion, a price-to-earnings ratio of 32.71 and a beta of 1.93. Reddit Inc. has a one year low of $119.27 and a one year high of $282.95. The company's fifty day moving average price is $176.72 and its two-hundred day moving average price is $164.92.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The company had revenue of $804.91 million during the quarter, compared to analysts' expectations of $731.00 million. Reddit had a return on equity of 29.97% and a net margin of 31.35%.The business's quarterly revenue was up 61.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.45 earnings per share. As a group, sell-side analysts anticipate that Reddit Inc. will post 4.85 earnings per share for the current year.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year, while earnings of $1.25 per share exceeded analysts’ estimates. Advertising demand, higher pricing and user growth supported stronger monetization. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, above Wall Street’s approximately $830 million expectation. AI-powered advertising tools, product upgrades and continued ad growth are expected to support momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish views: Truist raised its price target to $275 and maintained a buy rating, while Wedbush kept an outperform rating with a $221 target. KeyCorp also upgraded Reddit to “strong buy.” Reddit analyst actions
• Neutral Sentiment: Reddit is testing a “video Reddit” experience that could let users watch videos and listen to posts in the background, potentially increasing engagement and creating new advertising opportunities over time. Reddit is testing a new way to watch and listen to its viral posts
• Negative Sentiment: The primary selloff trigger was management’s warning that search referrals have become “choppy” or volatile. Investors fear Google’s AI-generated search summaries and other AI search tools could reduce traffic to Reddit, weakening future user growth, engagement and advertising monetization. Reddit Stock Plunges on Choppy Search Referrals Warning
• Negative Sentiment: Investors were also disappointed by slower U.S. daily-user growth and the lack of announced new AI licensing deals, raising questions about Reddit’s longer-term traffic outlook. JPMorgan and Cantor Fitzgerald responded by lowering their price targets to $185 and $170, respectively, while assigning neutral ratings. Reddit earnings: why are investors concerned despite solid headline numbers

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Citigroup restated a "market outperform" rating on shares of Reddit in a report on Friday. Sanford C. Bernstein reissued a "market perform" rating and set a $180.00 price objective on shares of Reddit in a research report on Friday. KeyCorp started coverage on Reddit in a research report on Wednesday. They set an "overweight" rating and a $225.00 price objective for the company. Cantor Fitzgerald lowered their target price on Reddit from $200.00 to $170.00 and set a "neutral" rating on the stock in a research note on Friday. Finally, UBS Group reaffirmed a "buy" rating on shares of Reddit in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat, Reddit has a consensus rating of "Moderate Buy" and a consensus price target of $223.16.

Insider Activity

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $178.26, for a total value of $3,208,680.00. Following the transaction, the chief executive officer directly owned 373,814 shares of the company's stock, valued at approximately $66,636,083.64. This trade represents a 4.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Marie Reynolds sold 808 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the sale, the chief accounting officer owned 15,060 shares of the company's stock, valued at approximately $3,012,000. This trade represents a 5.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 169,141 shares of company stock valued at $28,680,845. Insiders own 28.48% of the company's stock.

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.

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