Reddit CEO Steve Huffman Sells $1.58 Million in Stock as Company’s Market Cap Surges to $20 Billion

Steve Huffman, the CEO and President of Reddit, Inc. (NASDAQ: NYSE: RDDT), has recently sold a significant portion of the company’s Class A Common Stock, according to a filing with the Securities and Exchange Commission. The transactions, dated November 1, 2024, involved the sale of 14,000 shares, generating approximately $1.58 million. The shares were sold in multiple transactions at prices ranging from $111.41 to $115.11 per share.

Following these sales, Huffman retains direct ownership of 651,775 shares in Reddit. These transactions were executed as part of a pre-established trading plan, known as a Rule 10b5-1 plan, which Huffman adopted in May 2024. Additionally, the filing noted a conversion of 14,000 shares of Class B Common Stock into Class A Common Stock, which did not involve any monetary exchange.

Despite the CEO’s stock sale, Reddit’s financial performance has been robust. The company’s third-quarter earnings report revealed a 68% increase in total revenue and a 56% rise in advertising revenue, surpassing expectations. Reddit’s adjusted EBITDA was reported at $94 million, significantly higher than anticipated. This strong performance has led several firms, including B.Riley, Loop Capital, Piper Sandler, JMP Securities, and JPMorgan, to raise their price targets for Reddit.

Reddit’s market capitalization has climbed to $20 billion, with the company recently posting its first profit since its IPO in March 2024. The profit of $29.9 million for the third quarter was accompanied by a revenue of $348.4 million. Strategic partnerships with tech giants like Google and OpenAI have played a crucial role in this financial turnaround.

In other financial news, Reddit sold a significant portion of its cryptocurrency holdings during the third quarter, fetching approximately $6.869 million. The sale included primarily Bitcoin and Ether, with the company indicating it will continue to hold certain crypto assets and experiment with blockchain technology.

The company’s stock has seen a remarkable price movement, trading at $114.44 as of November 5, 2024, and reaching an all-time high following the announcement of its first profitable quarter. This surge in stock price and market performance has been fueled by increased investor confidence and Reddit’s strategic initiatives in AI and advertising).