Victory Capital Management Inc. Sells 44,778 Shares of Reddit Inc. $RDDT

Key Points

• Victory Capital reduced its stake in Reddit by 24.4% in Q3, selling 44,778 shares and leaving it with 138,921 shares worth about $31.95 million.
• Mixed insider and heavy institutional activity: Director Sarah E. Farrell bought 43,800 shares while CEO Steve Huffman sold 18,000, insiders overall sold 435,084 shares in the last three months (insiders own 34.25%), even as large institutions like Vanguard and Norges Bank built or expanded multi‑hundred‑million dollar positions.
• Strong quarterly results but tempered analyst sentiment: Reddit beat estimates with EPS of $1.24 and revenue of $725.6M (up 69.7% year‑over‑year), yet several analysts trimmed price targets and the stock carries a MarketBeat average target of $238.78 with a "Moderate Buy" rating.

Victory Capital Management Inc. reduced its stake in Reddit Inc. (NYSE:RDDT - Free Report) by 24.4% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 138,921 shares of the company's stock after selling 44,778 shares during the period. Victory Capital Management Inc. owned approximately 0.07% of Reddit worth $31,950,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in RDDT. Norges Bank purchased a new position in Reddit during the 2nd quarter valued at about $294,254,000. Vanguard Group Inc. lifted its holdings in shares of Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after buying an additional 1,401,293 shares in the last quarter. Amundi boosted its position in shares of Reddit by 2,060.5% in the second quarter. Amundi now owns 1,307,231 shares of the company's stock valued at $208,294,000 after acquiring an additional 1,246,725 shares during the period. State Street Corp grew its stake in Reddit by 138.5% during the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock valued at $305,678,000 after acquiring an additional 1,178,890 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in Reddit by 72.1% during the 2nd quarter. Geode Capital Management LLC now owns 1,989,004 shares of the company's stock worth $299,044,000 after acquiring an additional 833,245 shares during the period.

Insider Buying and Selling at Reddit

In other Reddit news, Director Sarah E. Farrell purchased 43,800 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The stock was bought at an average cost of $149.52 per share, for a total transaction of $6,548,976.00. Following the purchase, the director directly owned 43,800 shares in the company, valued at $6,548,976. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $220.28, for a total transaction of $3,965,040.00. Following the transaction, the chief executive officer directly owned 448,576 shares of the company's stock, valued at approximately $98,812,321.28. This trade represents a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 435,084 shares of company stock valued at $90,462,589. Company insiders own 34.25% of the company's stock.

Analysts Set New Price Targets

RDDT has been the subject of several analyst reports. JPMorgan Chase & Co. cut their price target on shares of Reddit from $227.00 to $200.00 and set a "neutral" rating for the company in a report on Friday, February 6th. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a research note on Saturday. Piper Sandler restated an "overweight" rating and set a $205.00 target price (down from $290.00) on shares of Reddit in a research report on Friday, February 6th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Reddit in a report on Monday, December 29th. Finally, Roth Mkm boosted their price objective on Reddit from $210.00 to $215.00 and gave the stock a "neutral" rating in a report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Reddit presently has an average rating of "Moderate Buy" and an average price target of $238.78.

Reddit Trading Down 3.2%

Shares of NYSE:RDDT opened at $139.65 on Monday. The stock has a market capitalization of $26.68 billion, a P/E ratio of 53.30, a price-to-earnings-growth ratio of 1.01 and a beta of 2.41. The stock's 50-day moving average price is $187.51 and its 200-day moving average price is $207.79. Reddit Inc. has a 12-month low of $79.75 and a 12-month high of $282.95.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.28. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The firm had revenue of $725.61 million during the quarter, compared to analyst estimates of $665.80 million. During the same quarter in the prior year, the company earned $0.36 EPS. The business's revenue was up 69.7% compared to the same quarter last year. As a group, research analysts predict that Reddit Inc. will post 1.12 EPS for the current year.

Reddit Profile

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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