Reddit CEO Steve Huffman Sells $1.58 Million in Stock

SAN FRANCISCO—Steve Huffman, the CEO and President of Reddit, Inc. (NASDAQ:RDDT), has recently sold a significant number of shares from the company's Class A Common Stock. According to a filing with the Securities and Exchange Commission, these transactions occurred on November 1, 2024, and involved the sale of 14,000 shares, which brought in approximately $1.58 million.

The sale was carried out through several transactions with share prices ranging from $111.41 to $115.11. After this sale, Huffman still owns 651,775 shares of Reddit. Notably, these sales were done as part of a pre-established trading plan, identified as a Rule 10b5-1 plan, which Huffman initiated in May 2024.

Furthermore, the filing also noted that Huffman converted 14,000 shares of Class B Common Stock to Class A Common Stock. This conversion was made on a one-for-one basis, meaning no money changed hands during this transaction.

Investors and market analysts are likely to monitor these developments closely as they evaluate Reddit's market strategies and the leadership decisions made by Huffman.

In related news, the company recently reported its third-quarter earnings, revealing a 68% increase in total revenue and a 56% rise in advertising revenue, both of which exceeded market expectations. The adjusted EBITDA for the company was reported to be $94 million, which was well above what analysts anticipated. Following this strong performance, Citi has maintained a Buy rating for Reddit, praising the companies’ increase in daily active users and its upgrades in platform technology, including machine learning and enhanced search operations.

A number of financial firms, including B.Riley, Loop Capital, Piper Sandler, JMP Securities, and JPMorgan, have updated their price targets for Reddit. B.Riley specifically pointed to the company's solid core advertising business and significant user growth as crucial factors for its ongoing success. Loop Capital echoed this sentiment by noting the company's potential for further growth and monetization.

Piper Sandler has raised its price target for Reddit to $115, reflecting the company's impressive quarterly results and future prospects. JMP Securities has increased its price target to $118 following the strong earnings report. These developments highlight Reddit's solid financial standing and promising growth path.

Investing Insights

As Steve Huffman implements his trading strategy, Reddit's financial performance offers important insights for investors. Current data shows Reddit’s market capitalization at $19.14 billion, highlighting its significant role in the social media industry.

The company's growth is notable, with revenue rising 48.7% in the last year to reach $1.12 billion. Analysts project that the trend of increasing sales will continue this year, supported by an impressive gross profit margin of 89.25%, accentuating its strong revenue generation capabilities in the competitive tech landscape.

However, despite these encouraging indicators, it is worth mentioning that Reddit is not yet profitable, with an operating income margin of -55.11% in the past year. Yet, analysts believe that profitability might be on the horizon, which could be crucial for potential investors.

The stock has performed remarkably in recent months, showcasing a 69.34% return in the past month and a 125.48% return over the last three months. This robust performance has positioned Reddit’s stock price near its 52-week high, currently trading at 99.17% of that peak price.

For those interested in further exploring Reddit's financial health and market standing, additional insights are available regarding various financial aspects such as cash reserves, earnings projections, and valuation metrics.

This article is generated with AI assistance and reviewed by an editor for accuracy.

CEO, Reddit, Stock