SAN FRANCISCO—Steve Huffman, CEO and President of Reddit, Inc. (NASDAQ:RDDT), sold shares of the company’s Class A common stock totaling approximately $21.5 million on January 15, 2025. The shares were sold at prices ranging from $168.05 to $178.48 per share. The sale comes as Reddit, now valued at $30.7 billion, has seen its stock surge 247% over the past year, according to InvestingPro data.
The transactions were part of a series of sales executed under a pre-established Rule 10b5-1 trading plan. This plan, adopted by Huffman on May 21, 2024, allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own.
Following these sales, Huffman continues to hold a substantial number of shares, both directly and indirectly. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, detailing the sale of shares owned directly by Huffman and through The XYZ Revocable Trust.
Investors and market watchers often scrutinize such filings to gauge insider sentiment about a company’s stock.
In other recent news, Reddit has been the subject of several financial firms’ analysis, with a general consensus on the company’s promising growth trajectory. Piper Sandler maintained an Overweight rating on Reddit, raising its price target to $197, citing user growth and ad inventory expansion as key growth drivers. The firm also projected Reddit’s Q4 revenue to reach $402 million, a 61% increase year-over-year. B.Riley, another financial firm, increased its price target on Reddit to $187, maintaining a Buy rating, and highlighted Reddit’s potential to surpass expectations within its category.
Morgan Stanley (NYSE:MS) upgraded Reddit’s stock from Equalweight to Overweight, setting a new price target of $200, anticipating a 35% growth in U.S. advertising revenue for Reddit between 2024 and 2027. However, BofA Securities maintained a Neutral rating on Reddit, warning of a potential slowdown in the second half of 2025, despite increasing the price target to $180.
Citi, expressing confidence in Reddit’s growth, lifted the company’s price target from $120 to $200, citing Reddit’s sustained engagement growth and the introduction of new products as key drivers. Needham echoed Citi’s bullish sentiment, raising Reddit’s price target to $190, based on the company’s robust user growth and increasing average revenue per user. Reddit recently experienced a major outage affecting thousands of users following a software bug fix. These are the recent developments in the company’s performance and market position.
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