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SAN FRANCISCO—Lee Benjamin Seong, the Chief Legal Officer at Reddit, Inc. (NASDAQ:RDDT), recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. On March 4, Seong sold shares of Reddit’s Class A Common Stock valued at approximately $14.5 million. The sales were conducted at prices ranging from $149.17 to $164.34 per share. The transactions come as Reddit, now valued at $30.49 billion, maintains impressive gross profit margins of 90.49%. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
These sales were part of a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling company stock. Following these transactions, Seong retains ownership of 115,001 shares of Reddit’s Class A Common Stock.
In addition to the sales, Seong also exercised stock options to acquire 75,000 shares at a price of $7.92 each, totaling $594,000. This exercise increased his holdings to a total of 249,500 shares before the subsequent sales.
The transactions highlight strategic financial planning by Reddit’s executive team, as they navigate the company’s evolving market position.
In other recent news, Reddit has seen a flurry of activity from analysts regarding its stock price targets and ratings. Piper Sandler raised Reddit’s price target to $220, maintaining an Overweight rating, citing a rebound in user engagement and an increase in average revenue per user, despite a dip in user growth attributed to Google (NASDAQ:GOOGL) Search traffic fluctuations. BofA Securities also increased its price target to $190 but held a Neutral rating, noting Reddit’s strong performance relative to the industry but expressing caution due to slower-than-expected U.S. user growth and potential risks from Google’s search algorithm changes.
Bernstein SocGen Group reaffirmed its Underperform rating with a price target of $150, pointing out challenges in user engagement and drawing attention to the competitive digital advertising landscape. Meanwhile, JPMorgan raised Reddit’s price target to $185, maintaining a Neutral rating, and highlighted robust advertising revenue growth, despite slower daily active user growth. The firm noted significant profit gains and expects continued strong revenue growth, though it warned of potential risks from future changes in Google’s search algorithms.
Jefferies adjusted its price target slightly downward to $225 while keeping a Buy rating, emphasizing Reddit’s success in diversifying its customer base and accelerating advertising revenue. Despite concerns over U.S. user growth, Jefferies remains optimistic about Reddit’s monetization potential and strategic initiatives. These developments reflect varying degrees of optimism and caution among analysts, as Reddit navigates its growth and challenges in the competitive digital space.
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