SAN FRANCISCO—Steve Huffman, CEO and President of Reddit, Inc. (NASDAQ:RDDT), sold the company’s Class A common stock for an aggregate amount of 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 shares rise 247% over the past year, according to InvestingPro data.
The transactions were part of a series of sales executed under a predetermined 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 to sell the shares they own.
After these sales, Huffman still holds a significant number of shares, directly and indirectly. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, detailing the sale of shares held 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 analysis by several financial firms, with the general consensus on the company’s promising growth trajectory. Piper Sandler maintained an Overweight rating on Reddit, raising her price target to $197, citing user growth and expanding ad inventory as key drivers of growth. The company also projected Reddit’s fourth-quarter revenue to be $402 million, a 61% year-over-year increase. B.Riley, another financial firm, raised its price target on Reddit to $187, maintaining a Buy rating, and highlighted Reddit’s potential to exceed expectations within its category.
Morgan Stanley (NYSE: ) upgraded Reddit stock from Equalweight to Overweight, setting a new price target of $200, forecasting 35% growth in US 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 raising the price target to $180.
Expressing confidence in Reddit’s growth, Citi raised its price target on the company from $120 to $200, citing continued growth in Reddit engagement and new product launches as key drivers. Needham echoed Citi’s bullish sentiment, raising Reddit’s price target to $190, based on strong user growth and an increase in average revenue per user. Reddit recently experienced a major outage affecting thousands of users after a bug was fixed. These are recent developments in the performance and position of the company in the market.
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