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 a total of 32,333 shares of Reddit's Class A Common Stock on December 16, 2024. The sales were executed at prices ranging from $166.74 to $179.80 per share, amounting to a total transaction value of approximately $5.87 million. The social media platform, now valued at $29.64 billion, has demonstrated impressive revenue growth of 48.7% over the last twelve months.
The transactions were made under a prearranged trading plan, known as a Rule 10b5-1 plan, which Wong adopted earlier this year. This type of plan allows company insiders to set up a predetermined schedule for buying or selling stock, helping them avoid potential conflicts of interest. The timing is notable as Reddit's stock has shown remarkable performance, with a 234.64% return year-to-date, according to InvestingPro data.
Following these sales, Wong retains direct ownership of 1,507,297 shares of Reddit's Class A Common Stock. Additionally, she holds 161,000 shares indirectly through the MorMa Trust. Wong also exercised stock options to acquire 33,333 shares at a conversion price of $5.35, which are now part of her direct holdings.
These transactions provide insight into Wong's current position with the company as Reddit continues to navigate its role in the digital media landscape.
In other recent news, Reddit has seen a series of significant developments. The social media platform has shown robust financial performance, with impressive revenue growth of 48.7% in the last twelve months. Reddit reported a 68% increase in total revenue and a 56% rise in advertising revenue, surpassing expectations. The company's adjusted EBITDA was reported at $94 million, significantly exceeding forecasts.
Investment firm Needham maintained a bullish outlook on Reddit, raising the company's price target to $190 and reaffirming a Buy rating. Similarly, Loop Capital raised its price target on Reddit shares to $180, maintaining a Buy rating. Morgan Stanley (NYSE:MS) upgraded Reddit's stock from Equalweight to Overweight and set a new price target of $200. Baird maintained a Neutral stance on shares of Reddit, but significantly raised the price target to $160.
Despite these positive developments, Reddit recently encountered a major outage affecting thousands of users, following a software bug fix. The company has not yet released a statement regarding the cause of the outage or the measures being taken to resolve the issue. These are recent developments that underscore the positive outlook for Reddit's continued growth and financial success.
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