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SAN FRANCISCO—Jennifer L. Wong, Chief Operating Officer of Reddit, Inc. (NASDAQ:RDDT), recently sold a significant portion of her holdings in the company. According to a filing with the Securities and Exchange Commission, Wong sold shares totaling approximately $3.78 million on May 16, 2025. The sales were executed at prices ranging from $111.35 to $116.47 per share. The social media platform, currently valued at approximately $20 billion, has demonstrated robust financial health with an impressive 91% gross profit margin, according to InvestingPro data.
The transactions were carried out as part of a Rule 10b5-1 trading plan, which Wong adopted on May 21, 2024. This type of plan allows company insiders to set up a predetermined schedule for selling stocks, helping to avoid potential accusations of insider trading.
In addition to these sales, Wong executed a stock option exercise, acquiring 33,333 shares of Class A Common Stock at no cost. Following the transactions, Wong holds 1,468,494 shares directly. Additionally, 38,112 shares were withheld by the company to satisfy tax obligations, a transaction not involving market sales.
Reddit, Inc., known for its vibrant online communities, continues to be a significant player in the digital media landscape. The company’s stock is currently trading near its InvestingPro Fair Value, with analysts projecting sales growth and earnings improvements this year. Investors and stakeholders will be closely watching any further developments or insider activities within the company. For deeper insights, including 17 additional ProTips and comprehensive financial analysis, explore the Reddit Pro Research Report on InvestingPro.
In other recent news, Reddit has been the focus of multiple analyst evaluations following its financial performance and projections. Seaport Global Securities upgraded Reddit to a Buy rating, citing a 61.5% year-over-year revenue growth in the first quarter and setting a price target of $165. The firm highlighted Reddit’s potential for long-term growth, despite challenges in user expansion due to changes in Google (NASDAQ:GOOGL)’s search algorithms. Similarly, Citizens JMP raised Reddit’s price target to $180, driven by a significant revenue beat and a strong outlook for the coming quarters. Analyst Andrew Boone emphasized the company’s advertising platform improvements and international expansion as key growth drivers.
Goldman Sachs also adjusted its price target to $140 while maintaining a Neutral rating, noting Reddit’s robust revenue growth and strategic developments in areas like artificial intelligence and advertisement diversification. JPMorgan increased its target to $145, acknowledging Reddit’s strong performance and resilience against macroeconomic pressures, though it cautioned about potential volatility in user traffic due to changes in Google’s ecosystem. Conversely, Wells Fargo (NYSE:WFC) downgraded Reddit from Overweight to Equal Weight, reducing the price target to $115 amid concerns over user base issues and the impact of AI-driven search tools on advertising revenues.
These recent developments illustrate a mixed outlook on Reddit’s financial health and growth prospects, with analysts weighing the company’s strong revenue performance against challenges in user growth and external market factors.
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