SAN FRANCISCO – Jennifer L. Wong, Chief Operating Officer of Reddit Inc. (NASDAQ:NYSE:), recently sold a significant portion of its shares in the company. According to a filing with the U.S. Securities and Exchange Commission (SEC), Wong sold a total of 32,333 Class A shares of Reddit on December 16, 2024. The sales were conducted at prices between $166.74 and $179.80 per share, for a total transaction value of approximately $5.87 million. The social media platform, currently valued at $29.64 billion, has seen impressive revenue growth of 48.7% over the last twelve months.
The transactions occur under a predetermined trading plan, known as a Rule 10b5-1 plan, that Wong set up earlier this year. This type of plan allows company insiders to set a set schedule for buying or selling shares and helps avoid potential conflicts of interest. The timing is notable as Reddit stock has shown exceptional performance, with a year-to-date return of 234.64%, according to data from InvestingPro.
Following these sales, Wong retains direct ownership of 1,507,297 Class A shares of Reddit. In addition, she holds 161,000 shares indirectly through the MorMa Trust. Wong also exercised stock options to purchase 33,333 shares at a conversion price of $5.35, which are now part of her direct ownership.
These transactions provide insight into Wong's current position at the company as Reddit continues to solidify its role in the digital media landscape.
In other recent news, Reddit has seen a number of notable developments. The social media platform demonstrated robust financial performance with impressive revenue growth of 48.7% over the last twelve months. Reddit reported a 68% increase in total revenue and a 56% increase in advertising revenue, beating expectations. The company's adjusted EBITDA was reported at $94 million, significantly beating forecasts.
Investment firm Needham maintained a bullish outlook for Reddit, raising the company's price target to $190 and reiterating a Buy rating. Likewise, Loop Capital raised its price target for Reddit shares to $180 and maintained a buy rating. Morgan Stanley upgraded Reddit stock to Overweight from Equalweight and set a new price target of $200. Baird maintained a neutral stance on Reddit shares but significantly increased the price target to $160.
Despite these positive developments, Reddit recently experienced a major outage that affected thousands of users and was caused by the need to fix a software bug. The company has not yet commented on the cause of the outage or what measures were taken to resolve the problem. These are recent developments that underscore the positive outlook for Reddit's continued growth and financial success.
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