Trexquant Investment LP Cuts Holdings in Reddit Inc. $RDDT

Key Points

• Trexquant Investment LP sold 63,487 shares of Reddit Inc. in Q1, reducing its stake by 67.3%, leaving it with 30,889 shares valued at approximately $3.24 million.
• Reddit's stock performance showed a 52-week range between $55.25 and $253.14, with a market cap of $41.19 billion and a current price of $220.07.
• Following recent earnings, Reddit's revenue increased by 77.9% year-over-year, surpassing analyst expectations by earning $0.45 EPS against a forecast of $0.20 EPS.

Trexquant Investment LP reduced its holdings in Reddit Inc. (NYSE:RDDT - Free Report) by 67.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 30,889 shares of the company's stock after selling 63,487 shares during the quarter. Trexquant Investment LP's holdings in Reddit were worth $3,240,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. JPMorgan Chase & Co. boosted its stake in shares of Reddit by 98.2% during the 1st quarter. JPMorgan Chase & Co. now owns 1,907,495 shares of the company's stock worth $200,096,000 after acquiring an additional 944,847 shares in the last quarter. Greycroft LP boosted its stake in shares of Reddit by 109.1% during the 1st quarter. Greycroft LP now owns 11,500 shares of the company's stock worth $1,206,000 after acquiring an additional 6,000 shares in the last quarter. Ogborne Capital Management LLC purchased a new stake in shares of Reddit during the 4th quarter worth approximately $11,539,000. Voloridge Investment Management LLC boosted its stake in shares of Reddit by 46.3% during the 4th quarter. Voloridge Investment Management LLC now owns 963,516 shares of the company's stock worth $157,477,000 after acquiring an additional 304,773 shares in the last quarter. Finally, Renaissance Capital LLC boosted its stake in shares of Reddit by 10.9% during the 1st quarter. Renaissance Capital LLC now owns 34,636 shares of the company's stock worth $3,633,000 after acquiring an additional 3,400 shares in the last quarter.

Reddit Trading Up 3.5%

Shares of Reddit stock traded up $8.08 during trading hours on Friday, reaching $240.19. 5,551,228 shares of the company's stock were exchanged, compared to its average volume of 5,904,451. Reddit Inc. has a 52-week low of $55.25 and a 52-week high of $253.14. The firm has a market capitalization of $44.95 billion, a price-to-earnings ratio of 218.35, a price-to-earnings-growth ratio of 3.81 and a beta of 2.40. The company has a fifty day moving average of $186.96 and a 200-day moving average of $142.81.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings results 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 return on equity of 9.93% and a net margin of 12.97%.The company had revenue of $499.63 million for the quarter, compared to analyst estimates of $424.07 million. During the same quarter in the prior year, the company posted ($0.06) EPS. The business's revenue for the quarter was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. On average, equities research analysts anticipate that Reddit Inc. will post 1.12 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have recently commented on RDDT shares. Robert W. Baird boosted their price target on Reddit from $120.00 to $151.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 8th. Citigroup upped their target price on Reddit from $158.00 to $163.00 and gave the company a "buy" rating in a research note on Tuesday, June 24th. 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. Wells Fargo & Company increased their target price on Reddit from $115.00 to $118.00 and gave the company an "equal weight" rating in a report on Tuesday, July 1st. Finally, Sanford C. Bernstein increased their target price on Reddit from $130.00 to $150.00 and gave the company a "market perform" rating in a report on Tuesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $175.38.

Insiders Place Their Bets

In other Reddit news, CFO Andrew Vollero sold 30,000 shares of the stock in a transaction on Friday, June 13th. The stock was sold at an average price of $117.64, for a total transaction of $3,529,200.00. Following the transaction, the chief financial officer owned 333,806 shares of the company's stock, valued at $39,268,937.84. This represents a 8.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Steve Ladd Huffman sold 124,409 shares of the stock in a transaction on Monday, June 16th. The stock was sold at an average price of $124.45, for a total value of $15,482,700.05. Following the transaction, the chief executive officer directly owned 546,133 shares in the company, valued at approximately $67,966,251.85. This represents a 18.55% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 516,777 shares of company stock worth $88,790,076. 34.25% of the stock is owned by company insiders.

Reddit Company 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.