Reddit CEO Steve Huffman sells $2.88m in company stock By Investing.com

Reddit () CEO and President Steve Huffman sold 18,000 shares of the company’s Class A Common Stock on August 4, 2026, for a total value of $2,876,016. The shares were sold at weighted average prices ranging from $154.51 to $162.45, with individual trades occurring within broader price ranges from $154.10 to $162.51. These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted by Huffman on May 19, 2025.The sale comes as Reddit shares have declined 34% year-to-date, trading at $150.87. Despite this downturn, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value, with the company maintaining an impressive 91% gross profit margin. Investors can access comprehensive analysis through Reddit’s Pro Research Report, one of 1,400+ available for top US equities.

Prior to the sales, Huffman acquired 18,000 shares of Class A Common Stock through the exercise of stock options at a price of $25.29 per share, totaling $455,220. The exercised options were part of a grant that vests quarterly over five years from December 25, 2023, subject to his continued employment or service relationship with the Issuer.

All reported transactions were held indirectly by The XYZ Revocable Trust. Following these transactions, Huffman’s indirect beneficial ownership through The XYZ Revocable Trust stands at 373,814 shares of Class A Common Stock. Huffman also holds additional Class A Common Stock indirectly through other grantor retained annuity trusts, including 68,966 shares via the EVS Trust – I, 6,897 shares via the MLH Trust – I, and 6,897 shares via the JDI Trust – I, for which he is the sole trustee and beneficiary.

In other recent news, Reddit Inc. reported strong second-quarter financial results, surpassing expectations with a 61% year-over-year revenue growth, marking the eighth consecutive quarter of such growth. The company also reported an EBITDA of $343 million, achieving a 43% margin. Despite these positive financials, several firms, including Cantor Fitzgerald, Piper Sandler, Baird, and Evercore ISI, have lowered their price targets for Reddit due to concerns about user growth and valuation adjustments. Cantor Fitzgerald and Baird both maintained a Neutral rating, while Piper Sandler and Evercore ISI kept an Overweight and Outperform rating, respectively.

Guggenheim, however, maintained its Buy rating with a $255 price target, emphasizing the company’s revenue and profit achievements despite a sequential decline in U.S. daily active users. Reddit’s third-quarter revenue guidance is set between $860 million and $870 million, representing a 47% to 49% year-over-year growth. Piper Sandler noted user headwinds, particularly a decline in U.S. daily active users, which affected market sentiment. Meanwhile, Reddit’s advertising business has shown signs of improvement, contributing to its revenue growth through positive pricing and impression growth.

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