Steve Ladd Huffman, the CEO and President of Reddit, Inc. (NASDAQ:RDDT), recently sold a significant portion of his holdings 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 December 31, 2024. The sale comes as Reddit's stock trades near its 52-week high of $182.20, with the company now commanding a market capitalization of $29.1 billion. The sales were executed at prices ranging from $163.71 to $167.48 per share, amounting to a total transaction value of approximately $2.31 million.
The transactions were carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Huffman adopted on May 21, 2024. This type of plan allows company insiders to sell a predetermined number of shares at a predetermined time, helping to avoid any potential accusations of insider trading.
Following these transactions, Huffman continues to hold a substantial number of shares, with 614,394 shares of Class A Common Stock remaining under his direct ownership. The sales come as Reddit continues to navigate its position in the competitive social media landscape, with investors closely watching the company's performance and strategic moves. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 16 additional ProTips available to subscribers covering crucial aspects like growth prospects and financial health.
In other recent news, Reddit has seen a series of adjustments to its stock price targets by various analyst firms, reflecting the company's robust financial performance. Citi has lifted Reddit's price target to $200, maintaining a Buy rating, driven by positive advertiser feedback and the introduction of new products. Needham also displayed a bullish outlook, raising Reddit's price target to $190, with an emphasis on the platform's user growth and increasing average revenue per user (ARPU).
Baird maintained a Neutral stance on Reddit shares but significantly raised the price target to $160, highlighting the platform's continuous expansion. Morgan Stanley (NYSE:MS) upgraded Reddit's stock from Equalweight to Overweight, setting a new price target of $200, and anticipates a 35% growth in U.S. advertising revenue for Reddit between 2024 and 2027. Loop Capital raised its price target on Reddit shares to $180, citing the company's robust performance since its initial public offering (IPO).
These revisions come following Reddit's impressive earnings results, with the platform reporting a 68% increase in total revenue and a 56% rise in advertising revenue. However, Reddit recently encountered a major outage affecting thousands of users following a software bug fix. These developments underscore the continued growth and financial success of Reddit.
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