SAN FRANCISCO—Jennifer L. Wong, the Chief Operating Officer of Reddit, Inc. (NASDAQ:RDDT), recently sold a significant portion of her Class A Common Stock holdings, according to a filing with the Securities and Exchange Commission. The transactions, which took place on January 16, involved the sale of shares at prices ranging from $171.10 to $176.63, totaling approximately $5.8 million. The sale comes as Reddit's stock trades near its 52-week high of $191, having delivered an impressive 273% return over the past year.
The sales were conducted under a pre-established Rule 10b5-1 trading plan, which Wong adopted in May 2024. This plan allows company insiders to set up a predetermined schedule for selling stocks, helping to avoid potential accusations of insider trading.
Following these transactions, Wong retains a considerable number of shares, with 1,504,297 shares still directly owned. Additionally, she holds 161,000 shares indirectly through the MorMa Trust, dated June 22, 2021.
Wong's recent activity also included the exercise of stock options, converting 33,334 options into shares at an exercise price of $5.35 per share. These transactions did not involve any cash exchange, as the exercise price was offset by the resulting share acquisition. The company, now valued at $30.78 billion, maintains strong fundamentals with an impressive 89.25% gross profit margin. InvestingPro subscribers can access 16 additional key insights about Reddit's financial health and growth prospects.
Investors and analysts often scrutinize such filings to gauge insider sentiment and potential future stock performance. Reddit, a prominent player in the technology sector, continues to attract attention as it navigates its growth trajectory. According to InvestingPro's Fair Value analysis, the stock appears overvalued at current levels, though analysts maintain price targets ranging from $85 to $215. For comprehensive analysis of Reddit and 1,400+ other stocks, including detailed valuation metrics and expert insights, consider accessing InvestingPro's Research Reports.
In other recent news, Reddit has been the subject of several adjustments by analyst firms due to its impressive financial performance. Piper Sandler increased Reddit's price target to $197, maintaining an Overweight rating. B.Riley analysts also raised their price target to $187, reaffirming a Buy rating. Citi lifted Reddit's price target to $200, citing sustained engagement growth and new product introductions as key growth drivers. Needham also raised Reddit's price target to $190, maintaining a Buy rating based on robust user growth and increasing average revenue per user.
Morgan Stanley (NYSE:MS) upgraded Reddit's stock from Equalweight to Overweight, setting a new price target of $200. The firm anticipates a 35% growth in U.S. advertising revenue for Reddit between 2024 and 2027. However, BofA Securities maintained a Neutral rating on Reddit, warning of a potential slowdown in the second half of 2025.
Reddit's recent developments include a 68% increase in total revenue and a 56% rise in advertising revenue. However, the company recently experienced a major outage affecting thousands of users following a software bug fix. These are the latest updates on Reddit's financial performance and market position.
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