T. Rowe Price Investment Management Inc. Grows Stock Holdings in Reddit Inc. $RDDT

Key Points

• T. Rowe Price Investment Management Inc. increased its stake in Reddit Inc. by 10.6% during the first quarter, now owning approximately 2.25% of the company, valued at $427.4 million.
• Analysts have raised their price targets for Reddit, with Guggenheim and JMP Securities setting targets of $215.00 and $225.00 respectively, and a consensus price target of $171.83.
• Reddit's stock has seen a 5.7% decrease recently, despite reporting a significant earnings beat, with quarterly revenue up 77.9% year-over-year.

T. Rowe Price Investment Management Inc. raised its position in shares of Reddit Inc. (NYSE:RDDT - Free Report) by 10.6% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 4,073,939 shares of the company's stock after purchasing an additional 389,761 shares during the period. T. Rowe Price Investment Management Inc. owned approximately 2.25% of Reddit worth $427,357,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Reddit by 11.1% in the 1st quarter. Vanguard Group Inc. now owns 10,198,552 shares of the company's stock worth $1,069,828,000 after buying an additional 1,017,162 shares during the last quarter. JPMorgan Chase & Co. grew its position in Reddit by 98.2% during the first quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock valued at $200,096,000 after acquiring an additional 944,847 shares during the last quarter. Lord Abbett & CO. LLC raised its stake in shares of Reddit by 12.8% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,861,998 shares of the company's stock worth $304,325,000 after acquiring an additional 211,636 shares in the last quarter. Cresset Asset Management LLC lifted its holdings in shares of Reddit by 159.6% in the 4th quarter. Cresset Asset Management LLC now owns 1,308,797 shares of the company's stock worth $213,910,000 after acquiring an additional 804,591 shares during the last quarter. Finally, Whale Rock Capital Management LLC bought a new stake in shares of Reddit in the 4th quarter worth approximately $204,054,000.

Insider Activity at Reddit

In related news, insider Benjamin Seong Lee sold 6,426 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.28, for a total value of $1,415,519.28. Following the sale, the insider directly owned 83,445 shares of the company's stock, valued at $18,381,264.60. This represents a 7.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Christopher Brian Slowe sold 10,000 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.25, for a total value of $2,202,500.00. Following the completion of the transaction, the chief technology officer owned 212,534 shares of the company's stock, valued at approximately $46,810,613.50. This trade represents a 4.49% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 411,004 shares of company stock valued at $64,005,737 over the last ninety days. Insiders own 34.25% of the company's stock.

Wall Street Analyst Weigh In

RDDT has been the topic of several recent research reports. Roth Capital increased their target price on shares of Reddit from $130.00 to $145.00 and gave the company a "neutral" rating in a report on Monday, July 21st. Seaport Res Ptn raised Reddit from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 5th. Argus began coverage on Reddit in a report on Monday. They issued a "buy" rating and a $250.00 price objective on the stock. Wall Street Zen raised Reddit from a "hold" rating to a "buy" rating in a research note on Saturday, June 14th. Finally, Guggenheim increased their target price on Reddit from $165.00 to $215.00 and gave the company a "buy" rating in a report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $175.38.

Reddit Price Performance

RDDT stock traded down $1.3650 during trading on Friday, reaching $217.2850. The company had a trading volume of 7,623,279 shares, compared to its average volume of 8,839,909. Reddit Inc. has a 52 week low of $55.02 and a 52 week high of $253.14. The business has a 50 day moving average of $169.82 and a 200 day moving average of $142.17. The company has a market cap of $40.67 billion, a P/E ratio of 197.53, a PEG ratio of 3.47 and a beta of 2.30.

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

About Reddit

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.