Steve Ladd Huffman, CEO and President of Reddit, Inc. (NASDAQ:RDDT), recently sold a significant portion of his shares in the company. According to a Form 4 filing with the Securities and Exchange Commission, Huffman sold a total of 14,000 shares of Class A Common Stock on November 29, 2024. The sales were executed at prices ranging from $140.85 to $143.31, amounting to a total transaction value of approximately $1.99 million. The stock has shown remarkable strength, with a year-to-date return of 197%, currently trading near $150 and approaching its 52-week high of $158.49.
These transactions were made under a pre-established Rule 10b5-1 trading plan, which Huffman adopted on May 21, 2024. Following these sales, Huffman retains ownership of 634,971 shares in Reddit. According to InvestingPro, Reddit maintains a GOOD financial health score, with 16 additional key insights available to subscribers. The company's comprehensive Pro Research Report, part of InvestingPro's coverage of 1,400+ US stocks, offers detailed analysis for informed investment decisions.
In other recent news, Reddit's financial performance has been remarkable, with a 68% increase in total revenue and a 56% rise in advertising revenue reported in the last quarter. The company's adjusted EBITDA was reported at $94 million, significantly exceeding forecasts. In response to these promising numbers, Loop Capital raised its price target on Reddit shares to $180, maintaining a Buy rating. Piper Sandler also increased its price target for Reddit to $150, citing strong user growth metrics. Meanwhile, Citi reaffirmed its Buy rating on Reddit, emphasizing the company's daily active user growth and the expansion of its advertising tools as key growth drivers.
Additionally, B.Riley raised its price target for Reddit to $112 following the company's strong third-quarter results. Reddit's user engagement has seen a significant increase, with total conversation page views rising by 40% year-over-year. The company also reported a notable improvement in profitability, achieving positive GAAP Operating and Net Income for the first time since the fourth quarter of 2023.
However, Reddit recently experienced a significant outage that impacted thousands of its users, following a software bug fix. Despite these technical challenges, Reddit's robust financial performance and promising growth trajectory have remained the focus of recent developments.
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