Granahan Investment Management LLC Lowers Holdings in Reddit Inc. $RDDT

Key Points

• Granahan Investment Management LLC has reduced its stake in Reddit Inc. by 37.4% in the first quarter, selling 57,619 shares and now owns 96,630 shares valued at approximately $10.1 million.
• Several hedge funds have made significant moves regarding their Reddit positions, with Northern Trust Corp increasing its stake by 56.5%, and Comerica Bank raising its holdings by an astonishing 122,300%.
• Wall Street analysts have mixed opinions on Reddit's stock, with a current average rating of "Moderate Buy" and a target price of $175.38, while some research firms have upgraded their price predictions significantly.

Granahan Investment Management LLC cut its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 37.4% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 96,630 shares of the company's stock after selling 57,619 shares during the quarter. Granahan Investment Management LLC owned approximately 0.05% of Reddit worth $10,136,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Stifel Financial Corp purchased a new position in Reddit in the fourth quarter valued at $1,392,000. The Manufacturers Life Insurance Company grew its position in shares of Reddit by 20.4% during the 4th quarter. The Manufacturers Life Insurance Company now owns 19,236 shares of the company's stock valued at $3,144,000 after acquiring an additional 3,257 shares during the period. Northern Trust Corp increased its stake in shares of Reddit by 56.5% in the 4th quarter. Northern Trust Corp now owns 267,126 shares of the company's stock valued at $43,659,000 after purchasing an additional 96,461 shares in the last quarter. Comerica Bank raised its holdings in Reddit by 122,300.0% in the 4th quarter. Comerica Bank now owns 3,672 shares of the company's stock worth $600,000 after purchasing an additional 3,669 shares during the period. Finally, Mercer Global Advisors Inc. ADV acquired a new position in Reddit in the 4th quarter worth about $226,000.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on RDDT shares. Morgan Stanley upped their target price on Reddit from $170.00 to $230.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Wall Street Zen lowered shares of Reddit from a "buy" rating to a "hold" rating in a research report on Saturday, August 30th. Guggenheim upped their price target on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Robert W. Baird increased their target price on Reddit from $120.00 to $151.00 and gave the company a "neutral" rating in a report on Tuesday, July 8th. Finally, Piper Sandler raised their price objective on Reddit from $150.00 to $210.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $175.38.

Insider Activity

In other news, CTO Christopher Brian Slowe sold 28,000 shares of the company's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $218.94, for a total transaction of $6,130,320.00. Following the completion of the transaction, the chief technology officer directly owned 222,534 shares of the company's stock, valued at approximately $48,721,593.96. This represents a 11.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Jennifer L. Wong sold 40,967 shares of the stock in a transaction dated Friday, August 22nd. The shares were 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 approximately $26,452,872.54. The trade was a 25.45% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 516,777 shares of company stock worth $88,790,076. 34.25% of the stock is currently owned by company insiders.

Reddit Price Performance

RDDT stock opened at $232.30 on Friday. The business's 50-day moving average is $185.02 and its two-hundred day moving average is $142.77. The firm has a market capitalization of $43.48 billion, a P/E ratio of 211.18, a P/E/G ratio of 3.54 and a beta of 2.40. Reddit Inc. has a 1 year low of $55.25 and a 1 year high of $253.14.

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

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