QRG Capital Management Inc. Grows Stock Holdings in Reddit Inc. $RDDT

Key Points

• QRG Capital Management boosted its Reddit stake by 183.3% in the first quarter, ending with 10,253 shares valued at about $1.38 million.
• Several other institutional investors also increased or initiated positions in Reddit, while analysts remain broadly positive with a Moderate Buy consensus and a $231.14 target price.
• Reddit’s latest quarter beat expectations, with EPS of $1.01 and revenue of $663.4 million, as revenue jumped 69.1% year over year and the company continues to push AI licensing and safety improvements.

QRG Capital Management Inc. raised its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 183.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 10,253 shares of the company's stock after buying an additional 6,634 shares during the period. QRG Capital Management Inc.'s holdings in Reddit were worth $1,381,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Truist Financial Corp grew its stake in Reddit by 67.7% in the 4th quarter. Truist Financial Corp now owns 15,659 shares of the company's stock valued at $3,600,000 after acquiring an additional 6,321 shares during the last quarter. Swiss Life Asset Management Ltd raised its position in Reddit by 63.2% during the fourth quarter. Swiss Life Asset Management Ltd now owns 32,003 shares of the company's stock worth $7,357,000 after acquiring an additional 12,398 shares during the last quarter. Calamos Advisors LLC acquired a new position in Reddit during the fourth quarter worth about $2,299,000. Handelsbanken Fonder AB lifted its holdings in shares of Reddit by 22.9% in the fourth quarter. Handelsbanken Fonder AB now owns 37,000 shares of the company's stock valued at $8,505,000 after purchasing an additional 6,900 shares in the last quarter. Finally, Berkshire Capital Holdings Inc. lifted its holdings in shares of Reddit by 326,400.0% in the fourth quarter. Berkshire Capital Holdings Inc. now owns 32,650 shares of the company's stock valued at $7,505,000 after purchasing an additional 32,640 shares in the last quarter.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on RDDT shares. Weiss Ratings reissued a "hold (c)" rating on shares of Reddit in a research note on Friday, May 8th. The Goldman Sachs Group reiterated a "neutral" rating and set a $200.00 target price on shares of Reddit in a report on Friday, May 1st. Oppenheimer reissued an "outperform" rating and set a $225.00 price target on shares of Reddit in a research report on Friday, May 1st. Piper Sandler reissued an "overweight" rating and issued a $215.00 price target (up from $205.00) on shares of Reddit in a report on Friday, May 1st. Finally, Wall Street Zen downgraded Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. Eighteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Reddit has a consensus rating of "Moderate Buy" and a consensus target price of $231.14.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Wells Fargo raised its price target on Reddit to $187 from $176, reinforcing a constructive view on the stock and helping support bullish momentum after a recent rally. Wells Fargo raises target on Reddit
• Positive Sentiment: Reddit is expanding its AI licensing business, which investors may view as an additional revenue stream tied to demand for its content in the AI ecosystem. Reddit expands AI licensing
• Positive Sentiment: The company is accelerating AI safety and anti-spam efforts, including stronger bot detection and human verification, which could improve user trust and protect the quality of Reddit conversations. Reddit AI safety drive accelerates
• Neutral Sentiment: Coverage on Reddit’s recent rally highlights technical strength and potential upside levels, but it is mostly a trading-focused read rather than a new fundamental catalyst. Options Corner video on RDDT
• Neutral Sentiment: Insider selling by the company’s CAO was disclosed, but the transaction was small and occurred under a pre-arranged 10b5-1 plan, making it less likely to signal a major change in outlook. Reddit CAO sells stock
• Negative Sentiment: Despite the higher target, Wells Fargo still rates Reddit “equal weight,” implying the stock may be close to fairly valued rather than dramatically undervalued at current levels. Wells Fargo equal weight rating on Reddit

Insider Buying and Selling

In other news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the transaction, the chief operating officer directly owned 1,088,451 shares in the company, valued at $175,752,182.97. This represents a 3.47% decrease in their position. The sale 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, CAO Michelle Marie Reynolds sold 808 shares of the firm'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 transaction of $161,600.00. Following the completion of the sale, the chief accounting officer directly owned 15,060 shares in the company, valued at $3,012,000. This represents a 5.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 226,308 shares of company stock worth $37,856,340. 28.48% of the stock is owned by company insiders.

Reddit Stock Performance

RDDT stock opened at $199.32 on Wednesday. The company has a 50 day moving average price of $166.78 and a two-hundred day moving average price of $171.23. The stock has a market capitalization of $38.37 billion, a P/E ratio of 56.95 and a beta of 1.93. Reddit Inc. has a one year low of $119.27 and a one year high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.39. The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The business's revenue for the quarter was up 69.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.13 EPS. Research analysts forecast that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Reddit 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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