🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Reddit director Gale Mary Porter sells $572,000 in stock

Published 06/11/2024, 12:26 pm
RDDT
-

SAN FRANCISCO—Gale Mary Porter, a director at Reddit, Inc. (NASDAQ:RDDT), recently sold a significant portion of her holdings in the company. According to a recent SEC filing, Porter sold 5,000 shares of Class A common stock on November 1st at an average price of $114.40 per share, totaling approximately $572,000.

Following this transaction, Porter retains ownership of 46,459 shares in the company. Additionally, a separate transaction on November 5th involved the disposition of 150 shares, though this was recorded at a price of $0 due to a specific transaction code, which does not reflect a typical market sale. The filing notes that Porter disclaims beneficial ownership of these 150 shares.

In other recent news, Reddit has been making headlines with its impressive third-quarter earnings report, marked by a 68% rise in total revenue and a 56% increase in advertising revenue. The company's adjusted EBITDA was reported at $94 million, significantly exceeding expectations. Analyst firms including Citi, B.Riley, Loop Capital, Piper Sandler, and JMP Securities have reaffirmed their confidence in Reddit, maintaining their buy ratings and raising their price targets.

Citi's endorsement follows productive discussions with Reddit's Chief Operating Officer, Jen Wong, and the Head of Investor Relations, Jesse Rose. The firm highlighted Reddit's daily active user growth and platform enhancements, including Shreddit, machine learning advancements, and improved search functionality. Citi also noted Reddit's advertising platform expansion, which is expected to capture more advertising spend, contributing to the company's overall profitability.

B.Riley and Loop Capital raised their price targets to $112 and $120 respectively, following Reddit's strong third-quarter results. They acknowledged the company's robust core advertising business and significant user growth. Piper Sandler, JMP Securities, and JPMorgan (NYSE:JPM) also increased their price targets for Reddit, citing the company's strong performance and future growth potential.

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. These recent developments underscore Reddit's strong financial performance and promising growth trajectory.

InvestingPro Insights

As Reddit's stock performance captures investor attention, InvestingPro data offers valuable context to Porter's recent share sale. The company's market capitalization stands at an impressive $21.52 billion, reflecting strong investor confidence. This aligns with Reddit's robust revenue growth, which InvestingPro data shows at 48.7% over the last twelve months as of Q3 2024, and an even more striking 67.87% growth in the most recent quarter.

InvestingPro Tips highlight Reddit's financial health, noting that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors may contribute to the stock's strong performance, with a 143% price return over the past year.

Despite the positive momentum, investors should note that Reddit is "trading near 52-week high" and has a "high revenue valuation multiple," according to InvestingPro Tips. This suggests that while the company's growth story is compelling, the current valuation may be stretched.

For those seeking a deeper understanding of Reddit's financial position and market outlook, InvestingPro offers 17 additional tips, providing a comprehensive analysis to inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.