Swiss National Bank Boosts Stock Holdings in Reddit Inc. $RDDT

Key Points

• Swiss National Bank increased its Reddit stake by 7.1% in the first quarter, owning 296,600 shares valued at about $39.9 million.
• Other major institutions also hold large positions in Reddit, including Vanguard, Capital World Investors, State Street, Geode Capital, and Morgan Stanley, signaling continued institutional interest in the stock.
• Despite analyst support with a Moderate Buy consensus and an average target price of $232.48, Reddit shares have come under pressure amid concerns about its Google AI content deal and possible traffic headwinds.

Swiss National Bank increased its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 7.1% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 296,600 shares of the company's stock after acquiring an additional 19,700 shares during the period. Swiss National Bank owned approximately 0.16% of Reddit worth $39,937,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in Reddit by 8.9% in the 4th quarter. Vanguard Group Inc. now owns 13,322,048 shares of the company's stock valued at $3,062,339,000 after purchasing an additional 1,083,540 shares in the last quarter. Capital World Investors acquired a new stake in Reddit in the fourth quarter valued at approximately $1,293,258,000. State Street Corp lifted its stake in Reddit by 6.0% in the fourth quarter. State Street Corp now owns 2,631,332 shares of the company's stock worth $604,864,000 after acquiring an additional 149,401 shares during the last quarter. Geode Capital Management LLC grew its holdings in Reddit by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 2,382,712 shares of the company's stock worth $546,789,000 after acquiring an additional 106,821 shares in the last quarter. Finally, Morgan Stanley increased its position in shares of Reddit by 11.4% in the 4th quarter. Morgan Stanley now owns 2,372,443 shares of the company's stock valued at $545,354,000 after purchasing an additional 242,709 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on RDDT shares. Zacks Research cut shares of Reddit from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 3rd. Piper Sandler reiterated an "overweight" rating and set a $215.00 target price on shares of Reddit in a research report on Thursday, July 9th. Wall Street Zen cut shares of Reddit from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Loop Capital reaffirmed a "buy" rating and set a $260.00 price objective on shares of Reddit in a research note on Thursday, June 4th. Finally, Citizens Jmp decreased their price target on Reddit from $250.00 to $240.00 and set a "market outperform" rating for the company in a report on Friday, May 1st. Nineteen 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, the company presently has a consensus rating of "Moderate Buy" and an average target price of $232.48.

Insider Activity at Reddit

In related news, CEO Steve Ladd Huffman sold 18,000 shares of the company's stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $173.13, for a total transaction of $3,116,340.00. Following the transaction, the chief executive officer owned 373,814 shares of the company's stock, valued at $64,718,417.82. This represents a 4.59% decrease in their ownership of the stock. 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 stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total value of $161,600.00. Following the completion of the transaction, the chief accounting officer owned 15,060 shares of the company's stock, valued at $3,012,000. The trade was a 5.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 169,141 shares of company stock worth $28,680,845 over the last three months. 28.48% of the stock is currently owned by corporate insiders.

Trending Headlines about Reddit

Here are the key news stories impacting Reddit this week:

• Negative Sentiment: Investors are worried Reddit could restrict Google’s access to its content for AI training, creating uncertainty around a key licensing agreement and raising questions about future monetization. Reddit stock sinks on report it may not renew Google AI content deal
• Negative Sentiment: The market also sees a risk that Google’s AI-generated overviews could reduce traffic referrals to Reddit, which would be a headwind for ad-driven engagement and revenue growth. Reddit stock plunges on report of possible Google content restrictions
• Negative Sentiment: Technical pressure is adding to the selloff, with the stock falling below key moving averages and momentum weakening ahead of Reddit’s next earnings report on July 30. Reddit stock sinks below key moving averages as momentum fades
• Neutral Sentiment: Recent commentary also notes that no new filing or operating update appears to be driving the move, suggesting this is mainly a sentiment-driven reaction to the Google/AI licensing narrative. Reddit slides as Google AI data-deal uncertainty revives traffic worries

Reddit Stock Down 8.3%

NYSE RDDT opened at $170.38 on Thursday. The stock has a market capitalization of $32.80 billion, a P/E ratio of 48.68 and a beta of 1.93. Reddit Inc. has a 52-week low of $119.27 and a 52-week high of $282.95. The firm has a 50-day moving average price of $174.21 and a 200 day moving average price of $168.20.

Reddit (NYSE:RDDT - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same quarter in the previous year, the company earned $0.13 EPS. The firm's revenue for the quarter was up 69.1% compared to the same quarter last year. On average, equities research analysts expect that Reddit Inc. will post 4.85 earnings per share for the current fiscal year.

About Reddit

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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