Reddit COO Jennifer Wong sells $5.8 million in inventory

SAN FRANCISCO—Jennifer L. Wong, the Chief Working Officer of Reddit, Inc. (NASDAQ:RDDT), lately bought a good portion of her Class A Widespread Inventory holdings, based on a submitting with the Securities and Change Fee. The transactions, which befell on January 16, concerned the sale of shares at costs starting from $171.10 to $176.63, totaling roughly $5.8 million. The sale comes as Reddit’s inventory trades close to its 52-week excessive of $191, having delivered a powerful 273% return over the previous yr.

The gross sales have been performed below a pre-established Rule 10b5-1 buying and selling plan, which Wong adopted in Could 2024. This plan permits firm insiders to arrange a predetermined schedule for promoting shares, serving to to keep away from potential accusations of insider buying and selling.

Following these transactions, Wong retains a substantial variety of shares, with 1,504,297 shares nonetheless straight owned. Moreover, she holds 161,000 shares not directly by way of the MorMa Belief, dated June 22, 2021.

Wong’s current exercise additionally included the train of inventory choices, changing 33,334 choices into shares at an train worth of $5.35 per share. These transactions didn’t contain any money alternate, because the train worth was offset by the ensuing share acquisition. The corporate, now valued at $30.78 billion, maintains sturdy fundamentals with a powerful 89.25% gross revenue margin. InvestingPro subscribers can entry 16 further key insights about Reddit’s monetary well being and progress prospects.

Traders and analysts usually scrutinize such filings to gauge insider sentiment and potential future inventory efficiency. Reddit, a outstanding participant within the know-how sector, continues to draw consideration because it navigates its progress trajectory. In keeping with InvestingPro‘s Truthful Worth evaluation, the inventory seems overvalued at present ranges, although analysts keep worth targets starting from $85 to $215. For complete evaluation of Reddit and 1,400+ different shares, together with detailed valuation metrics and skilled insights, contemplate accessing InvestingPro’s Analysis Reviews.

In different current information, Reddit has been the topic of a number of changes by analyst corporations because of its spectacular monetary efficiency. Piper Sandler elevated Reddit’s worth goal to $197, sustaining an Obese ranking. B.Riley analysts additionally raised their worth goal to $187, reaffirming a Purchase ranking. Citi lifted Reddit’s worth goal to $200, citing sustained engagement progress and new product introductions as key progress drivers. Needham additionally raised Reddit’s worth goal to $190, sustaining a Purchase ranking based mostly on sturdy person progress and rising common income per person.

Morgan Stanley (NYSE:MS) upgraded Reddit’s inventory from Equalweight to Obese, setting a brand new worth goal of $200. The agency anticipates a 35% progress in U.S. promoting income for Reddit between 2024 and 2027. Nonetheless, BofA Securities maintained a Impartial ranking on Reddit, warning of a possible slowdown within the second half of 2025.

Reddit’s current developments embody a 68% improve in whole income and a 56% rise in promoting income. Nonetheless, the corporate lately skilled a significant outage affecting 1000’s of customers following a software program bug repair. These are the newest updates on Reddit’s monetary efficiency and market place.

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