Handelsbanken Fonder AB Buys 6,900 Shares of Reddit Inc. $RDDT

Key Points

• Handelsbanken Fonder AB increased its Reddit stake by 22.9% in the fourth quarter, buying 6,900 shares and bringing its total holdings to 37,000 shares valued at about $8.5 million.
• Other institutional investors, including Vanguard, State Street, Bank of America, Invesco, and Nordea, also boosted their positions, signaling broad institutional interest in RDDT.
• Reddit’s latest earnings beat expectations, with $1.01 EPS and $663.4 million in revenue, while analysts currently hold a Moderate Buy consensus with an average price target of $228.61.

Handelsbanken Fonder AB raised its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 22.9% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 37,000 shares of the company's stock after purchasing an additional 6,900 shares during the period. Handelsbanken Fonder AB's holdings in Reddit were worth $8,505,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in Reddit by 8.9% in the fourth quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares in the last quarter. State Street Corp increased its stake in Reddit by 22.3% in the third quarter. State Street Corp now owns 2,481,931 shares of the company's stock valued at $570,819,000 after purchasing an additional 451,792 shares in the last quarter. Bank of America Corp DE increased its stake in Reddit by 38.4% in the third quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock valued at $396,632,000 after purchasing an additional 478,095 shares in the last quarter. Invesco Ltd. increased its stake in Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock valued at $342,212,000 after purchasing an additional 1,201,237 shares in the last quarter. Finally, Nordea Investment Management AB increased its stake in Reddit by 4.3% in the fourth quarter. Nordea Investment Management AB now owns 1,151,360 shares of the company's stock valued at $265,273,000 after purchasing an additional 47,187 shares in the last quarter.

Insider Transactions at Reddit

In other news, CEO Steve Ladd Huffman sold 18,000 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $157.15, for a total transaction of $2,828,700.00. Following the completion of the sale, the chief executive officer directly owned 411,195 shares of the company's stock, valued at $64,619,294.25. The trade was a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the company's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total transaction of $2,335,385.00. Following the completion of the sale, the chief technology officer directly owned 38,413 shares of the company's stock, valued at $5,787,686.71. The trade was a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 326,144 shares of company stock valued at $48,788,412 over the last three months. Corporate insiders own 34.25% of the company's stock.

Reddit Price Performance

NYSE:RDDT opened at $150.16 on Friday. The firm has a 50-day moving average of $147.57 and a 200-day moving average of $179.77. The company has a market cap of $28.91 billion, a PE ratio of 42.90 and a beta of 1.85. Reddit Inc. has a one year low of $95.23 and a one year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.62 by $0.39. The company had revenue of $663.41 million during the quarter, compared to the consensus estimate of $607.74 million. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The firm's revenue for the quarter was up 69.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.13 earnings per share. On average, equities research analysts expect that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Analysts and commentators continue to highlight rapid revenue growth, strong margins, and improving monetization as reasons Reddit could have more upside over time. Article Title
• Positive Sentiment: Reddit’s ARPU jumped 44% in the latest quarter, supported by advertiser growth, AI ad tools, and international expansion, which suggests stronger monetization. Article Title
• Positive Sentiment: One bullish note says Reddit remains oversold after a steep decline and still offers attractive risk-reward given its user growth and strong gross margins. Article Title

Analyst Upgrades and Downgrades

Several research firms have weighed in on RDDT. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $200.00 price target on shares of Reddit in a research note on Friday, May 1st. Evercore reaffirmed an "outperform" rating and issued a $290.00 price target on shares of Reddit in a research note on Friday, February 6th. Oppenheimer reaffirmed an "outperform" rating and issued a $225.00 price target on shares of Reddit in a research note on Friday, May 1st. Morgan Stanley set a $240.00 price target on shares of Reddit in a research note on Friday, February 6th. Finally, Needham & Company LLC reissued a "buy" rating and set a $300.00 target price on shares of Reddit in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $228.61.

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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