Swedbank AB Invests $4.44 Million in Reddit Inc. $RDDT

Key Points

• Swedbank AB has invested approximately $4.44 million in Reddit Inc. by acquiring 42,298 shares in the first quarter of the year.
• CEO Steve Ladd Huffman sold 18,000 shares of Reddit for over $4 million, reducing his ownership by 3.51%.
• Analysts have raised their target prices for Reddit's stock, with recommendations of "buy" from several firms, reflecting increased confidence in the company's performance.

Swedbank AB bought a new position in Reddit Inc. (NYSE:RDDT - Free Report) in the first quarter, according to the company in its most recent disclosure with the SEC. The fund bought 42,298 shares of the company's stock, valued at approximately $4,437,000.

Several other institutional investors have also recently made changes to their positions in RDDT. Petrus Trust Company LTA bought a new stake in Reddit during the 1st quarter worth approximately $473,000. JPMorgan Chase & Co. raised its position in shares of 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 buying an additional 944,847 shares during the last quarter. Greycroft LP increased its position in Reddit by 109.1% in the first quarter. Greycroft LP now owns 11,500 shares of the company's stock worth $1,206,000 after purchasing an additional 6,000 shares during the last quarter. Think Investments LP increased its position in Reddit by 10.3% in the first quarter. Think Investments LP now owns 268,000 shares of the company's stock worth $28,113,000 after purchasing an additional 25,000 shares during the last quarter. Finally, Sender Co & Partners Inc. purchased a new position in Reddit during the first quarter worth $1,367,000.

Reddit Price Performance

Shares of NYSE RDDT traded down $4.96 during trading hours on Friday, hitting $265.75. 11,570,924 shares of the company's stock were exchanged, compared to its average volume of 5,200,335. Reddit Inc. has a 1-year low of $63.60 and a 1-year high of $282.95. The stock has a market capitalization of $49.74 billion, a price-to-earnings ratio of 241.59, a PEG ratio of 4.26 and a beta of 2.40. The company's 50-day moving average price is $208.28 and its 200-day moving average price is $149.41.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.45 earnings per share (EPS) 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 business had revenue of $499.63 million during the quarter, compared to analysts' expectations of $424.07 million. During the same period in the prior year, the firm posted ($0.06) EPS. Reddit's quarterly revenue was up 77.9% compared to the same quarter last year. Reddit has set its Q3 2025 guidance at EPS. On average, research analysts expect that Reddit Inc. will post 1.12 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on RDDT shares. Jefferies Financial Group raised their price target on shares of Reddit from $230.00 to $300.00 and gave the stock a "buy" rating in a research note on Wednesday, September 10th. Loop Capital cut their price objective on shares of Reddit from $210.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, June 12th. Wall Street Zen upgraded shares of Reddit from a "hold" rating to a "buy" rating in a report on Sunday, September 7th. Argus assumed coverage on Reddit in a research report on Monday, August 18th. They issued a "buy" rating and a $250.00 target price on the stock. Finally, Raymond James Financial restated a "strong-buy" rating and issued a $225.00 price objective (up previously from $175.00) on shares of Reddit in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $197.88.

Insider Buying and Selling

In other news, CFO Andrew Vollero sold 30,000 shares of the firm's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $218.09, for a total value of $6,542,700.00. Following the transaction, the chief financial officer directly owned 284,168 shares in the company, valued at $61,974,199.12. This trade represents a 9.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Jennifer L. Wong sold 40,967 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $220.38, for a total value of $9,028,307.46. Following the completion of the transaction, the chief operating officer owned 120,033 shares in the company, valued at $26,452,872.54. This represents a 25.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 360,126 shares of company stock valued at $73,529,359. 34.25% of the stock is currently owned by corporate insiders.

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.