Driehaus Capital Management LLC Has $17.19 Million Holdings in Reddit Inc. $RDDT

Key Points

• Driehaus Capital Management LLC reduced its stake in Reddit Inc. by 6.0%, now holding approximately 0.09% of the company, valued at about $17.19 million.
• Multiple analysts have given positive ratings for Reddit, with a consensus rating of "Moderate Buy" and an average price target of $175.38, reflecting confidence in its future performance.
• Insider trading activity included CEO Steve Ladd Huffman selling a significant amount of shares, reducing his ownership by 18.55%, raising concerns about insider sentiment.

Driehaus Capital Management LLC cut its stake in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 6.0% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 163,862 shares of the company's stock after selling 10,406 shares during the period. Driehaus Capital Management LLC owned about 0.09% of Reddit worth $17,189,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in RDDT. CWM LLC grew its position in Reddit by 100.0% during the first quarter. CWM LLC now owns 256 shares of the company's stock valued at $27,000 after purchasing an additional 128 shares in the last quarter. Stone House Investment Management LLC purchased a new position in Reddit during the first quarter valued at approximately $31,000. Canton Hathaway LLC purchased a new position in Reddit during the first quarter valued at approximately $43,000. Olde Wealth Management LLC purchased a new position in Reddit during the first quarter valued at approximately $46,000. Finally, Fourth Dimension Wealth LLC purchased a new position in Reddit during the fourth quarter valued at approximately $49,000.

Analysts Set New Price Targets

Several analysts have commented on RDDT shares. Guggenheim boosted their target price 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. Piper Sandler boosted their target price on shares of Reddit from $150.00 to $210.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. JMP Securities boosted their target price on shares of Reddit from $180.00 to $225.00 and gave the stock a "market outperform" rating in a research report on Friday, August 1st. Bank of America boosted their target price on shares of Reddit from $130.00 to $150.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 30th. Finally, Wolfe Research raised shares of Reddit to an "outperform" rating in a research report on Sunday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Reddit has an average rating of "Moderate Buy" and a consensus target price of $175.38.

Insiders Place Their Bets

In other news, insider Benjamin Seong Lee sold 6,426 shares of the business's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $220.28, for a total value of $1,415,519.28. Following the completion of the sale, the insider directly owned 83,445 shares in the company, valued at approximately $18,381,264.60. The trade was a 7.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Christopher Brian Slowe sold 10,000 shares of the business's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.25, for a total transaction of $2,202,500.00. Following the completion of the sale, the chief technology officer owned 212,534 shares of the company's stock, valued at $46,810,613.50. The trade was a 4.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 468,777 shares of company stock valued at $78,225,996 in the last three months. Company insiders own 34.25% of the company's stock.

Reddit Stock Performance

Shares of Reddit stock traded down $5.01 on Tuesday, reaching $220.07. The stock had a trading volume of 4,568,921 shares, compared to its average volume of 7,792,997. The business's 50-day moving average price is $180.03 and its two-hundred day moving average price is $141.41. Reddit Inc. has a fifty-two week low of $55.25 and a fifty-two week high of $253.14. The stock has a market cap of $41.19 billion, a P/E ratio of 200.06, a price-to-earnings-growth ratio of 3.57 and a beta of 2.38.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings data 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. Reddit had a net margin of 12.97% and a return on equity of 9.93%. The business had revenue of $499.63 million during the quarter, compared to analysts' expectations of $424.07 million. During the same period in the previous year, the company earned ($0.06) earnings per share. Reddit's revenue for the quarter was up 77.9% on a year-over-year basis. Reddit has set its Q3 2025 guidance at EPS. As a group, equities analysts forecast that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Reddit 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.