Reddit CEO Steve Huffman sells $15.8 million in company stock

Steve Huffman, CEO and President of Reddit, Inc. (NASDAQ:RDDT), recently sold a significant portion of the company’s Class A Common Stock. According to a Form 4 filing with the Securities and Exchange Commission, Huffman sold shares totaling approximately $15.8 million on March 14, 2025. The sales were executed at prices ranging from $123.93 to $130.55 per share. The timing is notable as Reddit’s stock has experienced a 15.8% decline over the past week, though it maintains a strong 118% gain over the last year. InvestingPro analysis suggests the stock is currently trading below its Fair Value.

The transactions were part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks. This plan was adopted by Huffman on May 21, 2024. For deeper insights into insider transactions and comprehensive analysis, InvestingPro subscribers can access detailed reports covering executive trading patterns and their implications.

Following these transactions, Huffman continues to hold a substantial number of shares through The XYZ Revocable Trust, reflecting his ongoing stake and interest in the company’s future. With a market capitalization of $22.7 billion and analysts forecasting profitability this year, Reddit maintains strong fundamentals, including impressive gross profit margins of 90.5% and a healthy balance sheet with more cash than debt.

In other recent news, Reddit has seen a series of updates regarding its stock evaluations and financial performance. Piper Sandler recently increased the price target for Reddit shares to $220, citing a rebound in user engagement after a dip attributed to fluctuations in Google (NASDAQ:GOOGL) Search traffic. The firm maintained an Overweight rating, indicating confidence in Reddit’s growth and profitability potential. Meanwhile, Raymond (NSE:RYMD) James adjusted Reddit’s price target to $200, maintaining a Strong Buy rating and highlighting the platform’s significant user base and the enduring value of its content in the evolving AI landscape.

BofA Securities raised its price target for Reddit to $190, while keeping a Neutral rating, acknowledging Reddit’s robust performance and potential for growth despite some challenges in user growth and revenue projections. JPMorgan also increased its price target to $185, noting Reddit’s strong advertising revenue growth and improved profitability, though it maintained a Neutral rating due to uncertainties related to Google search changes. In contrast, Bernstein SocGen Group reaffirmed its Underperform rating with a price target of $150, pointing to challenges in user engagement and competitive pressures in the digital advertising market.

These developments reflect a mix of optimism and caution among analysts, with varying expectations for Reddit’s future performance in a competitive digital landscape. Reddit’s ability to navigate these challenges and capitalize on its strengths remains a focal point for investors and analysts alike.

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