Reddit CEO sells $3.4 million in RDDT stock

Published 19/08/2025, 00:38
Reddit CEO sells $3.4 million in RDDT stock

Reddit (NASDAQ:RDDT) CEO Steve Huffman sold a total of $3,425,763 worth of Class A Common Stock on August 15. The sales were executed in multiple trades at prices ranging from $236.69 to $247.91, with the stock trading near its 52-week high of $253.14. The company’s shares have delivered an impressive 340% return over the past year, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

According to a Form 4 filing with the Securities and Exchange Commission, Huffman, through The XYZ Revocable Trust, disposed of 13,450 shares of Reddit’s Class A Common Stock.

Specifically, the transactions involved multiple sales at varying prices: 400 shares were sold at prices ranging from $236.20 to $236.90, 500 shares at prices between $237.31 and $238.20, 400 shares at prices from $238.92 to $239.74, 200 shares at prices ranging from $240.16 to $241.05, 600 shares at prices between $241.32 and $242.00, 600 shares at prices from $242.58 to $243.03, 1905 shares at prices ranging from $243.89 to $244.88, 4011 shares at prices between $244.90 and $245.89, 4744 shares at prices from $245.91 to $246.90, 540 shares at prices ranging from $246.91 to $247.66 and 100 shares at $247.91.

On August 14, Huffman gifted 8,146 shares of Class A Common Stock. In addition, on August 15, Huffman converted 14,000 shares of Class B Common Stock to Class A Common Stock.

Following these transactions, Huffman, through The XYZ Revocable Trust, still owns 531,485 shares of Class A Common Stock and 3,586,915 shares of Class B Common Stock. With Reddit’s market capitalization now at $46.13 billion and trading at a P/E ratio of 163, InvestingPro data reveals 23 additional key insights about the company’s valuation and growth prospects.

The sales were executed pursuant to a Rule 10b5-1 trading plan adopted on May 21, 2024. Despite the insider sale, Reddit maintains a strong financial health score of 3.3 out of 5 according to InvestingPro metrics, with impressive gross profit margins of 91% and a solid balance sheet showing more cash than debt.

In other recent news, Reddit has reported strong financial performance for the second quarter of 2025, with revenue and EBITDA exceeding the high end of guidance by $70 million and $37 million, respectively. Advertising revenue saw a significant 84% year-over-year increase, showcasing robust growth. The company’s global daily active users grew by 21% year-over-year to 110.4 million, surpassing analyst estimates. This positive performance has led several financial firms to adjust their price targets for Reddit’s stock. Morgan Stanley (NYSE:MS) raised its price target to $230, citing better-than-expected user metrics. Deutsche Bank (ETR:DBKGn) increased its target to $205, maintaining a Buy rating, while Goldman Sachs raised its target to $212 with a Neutral rating. BofA Securities also adjusted its target to $180, highlighting strong execution and advertiser adoption. Citizens JMP set a new target of $225, following the impressive earnings report. These developments indicate a favorable outlook from analysts on Reddit’s financial trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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