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Steve Huffman, CEO and President of Reddit, Inc. (NASDAQ:RDDT), recently executed a series of stock transactions, selling Class A Common Stock valued at approximately $12 million. The sales, disclosed in a regulatory filing, took place on April 15, 2025, and involved multiple trades with prices ranging from $95.25 to $99.63 per share. According to InvestingPro data, the stock is currently trading below its Fair Value, despite showing impressive gross profit margins of over 90%.
Huffman, who also serves as a director and a significant shareholder of the company, conducted these sales through The XYZ Revocable Trust, according to the filing. The transactions were part of a pre-arranged trading plan under Rule 10b5-1, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential accusations of insider trading. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt on its balance sheet, and analysts expect both revenue growth and profitability in the current year.
The filing also noted that Huffman acquired shares through conversion and exercise of stock options, although these transactions did not involve cash payments. Following these transactions, Huffman retains ownership of a substantial number of shares, reflecting his ongoing stake in the company.
Investors and analysts will be watching closely to see how these transactions might impact market perceptions of Reddit, particularly as the company continues to navigate its growth trajectory in the tech industry.
In other recent news, Reddit’s financial outlook has seen mixed adjustments from several analyst firms. Piper Sandler has lowered its price target for Reddit shares from $220 to $140 while maintaining an Overweight rating. This adjustment is based on expectations for first-quarter revenue to reach $369 million and EBITDA to be near $89.8 million, alongside concerns about advertising growth potential. Meanwhile, Citizens JMP reduced its price target from $200 to $155, although the firm continues to hold a Market Outperform rating. This revision is based on a projected 2026 EBITDA of $761 million, reflecting a 35% margin. Baird also adjusted its outlook, cutting the price target from $185 to $125, with a Neutral rating, citing potential delays in new product initiatives and market fluctuations. Despite these varied assessments, Citizens JMP maintains confidence in Reddit’s growth potential, suggesting a premium multiple for its EBITDA compared to competitors. These recent developments highlight the diverse perspectives on Reddit’s future financial performance.
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