National Pension Service Sells 183,956 Shares of Reddit Inc. $RDDT

Key Points

• National Pension Service reduced its Reddit stake by 88% in the second quarter, selling 183,956 shares and retaining 25,075 shares valued at approximately $4.35 million.
• Reddit reported stronger-than-expected quarterly results, with EPS of $1.25 versus $0.95 expected and revenue of $804.9 million, up 61% year over year.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and average price target of $221.10, although several firms recently lowered their targets and company insiders have sold shares under pre-arranged trading plans.

National Pension Service cut its holdings in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 88.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 25,075 shares of the company's stock after selling 183,956 shares during the quarter. National Pension Service's holdings in Reddit were worth $4,353,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the business. Concorde Asset Management LLC bought a new position in Reddit during the second quarter worth $788,000. NewEdge Advisors LLC boosted its holdings in Reddit by 34.6% in the 2nd quarter. NewEdge Advisors LLC now owns 4,922 shares of the company's stock valued at $854,000 after purchasing an additional 1,265 shares during the period. IFP Advisors Inc boosted its holdings in Reddit by 8.8% in the 2nd quarter. IFP Advisors Inc now owns 1,411 shares of the company's stock valued at $245,000 after purchasing an additional 114 shares during the period. Baird Financial Group Inc. grew its position in Reddit by 35.7% in the 2nd quarter. Baird Financial Group Inc. now owns 2,191 shares of the company's stock worth $380,000 after purchasing an additional 576 shares during the last quarter. Finally, Beacon Investment Advisory Services Inc. acquired a new stake in Reddit in the 2nd quarter worth $35,000.

Reddit Trading Up 0.1%

NYSE RDDT opened at $157.88 on Monday. The stock's 50 day moving average is $167.16 and its two-hundred day moving average is $159.20. The company has a market capitalization of $30.38 billion, a price-to-earnings ratio of 36.72, a PEG ratio of 0.73 and a beta of 2.02. Reddit Inc. has a 1-year low of $119.27 and a 1-year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The business had revenue of $804.91 million during the quarter, compared to analysts' expectations of $731.00 million. Reddit had a return on equity of 29.02% and a net margin of 31.35%.Reddit's quarterly revenue was up 61.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.45 EPS. On average, analysts predict that Reddit Inc. will post 5.27 earnings per share for the current year.

Analyst Ratings Changes

A number of brokerages have recently commented on RDDT. Piper Sandler reaffirmed an "overweight" rating and set a $195.00 price objective (down from $215.00) on shares of Reddit in a research report on Friday, July 31st. JPMorgan Chase & Co. decreased their target price on Reddit from $200.00 to $185.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. Telsey Advisory Group set a $240.00 target price on Reddit in a research report on Friday, July 31st. Roth Capital restated a "neutral" rating and set a $145.00 price target on shares of Reddit in a research note on Monday, August 3rd. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and issued a $205.00 price target on shares of Reddit in a report on Monday, August 17th. Two investment analysts have 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. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $221.10.

Insider Buying and Selling

In other news, CAO Michelle Reynolds sold 808 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $200.00, for a total value of $161,600.00. Following the sale, the chief accounting officer owned 15,060 shares in the company, valued at approximately $3,012,000. The trade was a 5.09% decrease in their position. The sale was disclosed in a document filed 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, CEO Steve Huffman sold 18,000 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $178.16, for a total transaction of $3,206,880.00. Following the completion of the sale, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $66,598,702.24. The trade was a 4.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 192,102 shares of company stock valued at $33,166,572. 28.48% of the stock is owned by insiders.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: August user growth reached a 2026 high. Piper Sandler data indicated Reddit’s average users increased 8% month over month in August, the company’s strongest monthly growth rate this year. The data helped reverse a four-session decline and drove renewed investor interest. Reddit stock rises 6% as August user growth hits 2026 high
• Positive Sentiment: International momentum was particularly strong. Reports said international users surged 29% in August, while total user growth accelerated 8% month over month. Expanding overseas engagement could provide Reddit with additional long-term advertising inventory and monetization opportunities. Reddit’s August user growth jumps 8% month-on-month
• Positive Sentiment: Analysts viewed the audience and advertising trends as improving. Piper Sandler described the user-growth acceleration as a powerful signal, while other coverage linked the larger global audience with improving ad trends. This supports the bullish case that Reddit can continue expanding revenue beyond its recent 61% year-over-year growth. Reddit gains as August user growth accelerates
• Neutral Sentiment: Investor attention remains unusually high. Reddit was among the stocks most heavily searched by Zacks users, which can increase trading activity and visibility but does not by itself establish a fundamental change in earnings prospects. Investors heavily search Reddit
• Negative Sentiment: Concerns are emerging over the sustainability of ad growth. The latest analysis questions what Reddit is effectively paying to generate its advertising expansion, raising the risk that user acquisition, incentives, content investment, or other costs could limit profit conversion. With RDDT trading at a growth-oriented valuation, investors may demand evidence that audience gains translate into durable, profitable revenue. What Are You Really Paying For Reddit’s Ad Growth?

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and discussions. Users can submit posts, links, images and videos, while community members can comment, vote and interact through publicly accessible forums known as subreddits.

The company generates revenue primarily through digital advertising and also offers premium memberships and other paid products. Reddit additionally provides data licensing and developer-related services that support the use of its platform content and technology.

Founded in 2005 by Steve Huffman, Alexis Ohanian and Aaron Swartz, Reddit serves users worldwide across a broad range of communities.

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 reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.