Reddit CTO sells more than $1 million in company stock by Investing.com

Chief Technology Officer of Reddit, Inc. (NASDAQ:RDDT) Christopher Brian Slowe sold a significant portion of his company’s stock in transactions totaling more than $1 million. According to recent filings, Slowe completed multiple sales of Class A common stock on September 23, 2024.

The reported sales were executed in a series of transactions at different prices. Transactions ranged from $65.23 to $66.28 per share, for a total of approximately $1,049,181 worth of shares sold. These sales were made pursuant to a prearranged 10b5-1 trading plan, which allows company insiders to sell stock at prearranged times to avoid insider trading charges.

The filing also noted that Slowe purchased 11,000 shares of Class A common stock on the same day, although those shares were obtained at no cost. Following the sale, Slowe’s direct ownership of Reddit is 339,295 shares of Class A common stock, in addition to his indirect ownership of 36,468 shares held by The Slowe Family Trust.

Investors often monitor insider buying and selling because they can provide information about an executive’s confidence in the company’s future performance. However, it is important to note that these transactions do not necessarily indicate a change in the company’s outlook and may simply reflect an individual’s financial planning strategy.

Reddit, a technology company specializing in computer processing and data preparation, is known for its popular social platform that hosts vibrant communities and discussions on a wide range of topics. The company’s stock is publicly traded under the ticker symbol NASDAQ:RDDT.

In other recent news, Reddit has made significant progress in its financial performance. The company’s second-quarter revenue rose 54% to $281.2 million, beating analysts’ estimates of $253.6 million. Net loss also narrowed to $10.1 million from $41.1 million a year ago, while adjusted EBITDA turned positive at $39.5 million.

B.Riley initiated coverage on Reddit, setting a buy rating and a $75.00 price target. The firm highlighted Reddit’s early stage monetization through advertising and data licensing as key drivers for potential growth, expecting robust growth and margin expansion in the coming years.

Several other analyst firms have also revised their outlooks on Reddit. Piper Sandler raised their target on shares of Reddit to $70.00, maintaining an overweight rating, while Loop Capital upgraded shares of Reddit from Hold to Buy with a stock target increase from $60 to $75. Needham and JMP Securities also reflected positive outlooks on Reddit’s performance, with Needham raising its price target on Reddit shares to $75 and JMP maintaining a Market Outperform rating.

These are recent developments that highlight Reddit’s strong financial performance and promising growth trajectory, as recognized by multiple analyst firms.

InvestingPro Insights

Following news of the CTO’s stock sale, investors and potential shareholders of Reddit, Inc. (NASDAQ:RDDT) may be interested in the company’s current financial status and market performance. According to recent data from InvestingPro, Reddit has a market cap of $10.78 billion, indicating a significant presence in the tech sector. Despite not being profitable over the trailing twelve months, with a negative P/E ratio of -8.78, the company posted robust revenue growth of 36.55% over the same period. This suggests that Reddit is effectively expanding its revenue streams, which could be a positive sign for future profitability.

One of InvestingPro’s tips points out that Reddit has an impressive gross profit margin of 88.54%, which is a testament to its ability to manage costs relative to its revenue. This, along with the fact that analysts have revised their earnings upward for the next period, could indicate the potential for improved financial performance. Furthermore, Reddit shares have seen strong returns over the past month, up 16.51%, which may reflect increased investor confidence in the company’s prospects.

For readers looking for deeper analysis and additional insights, InvestingPro offers a comprehensive list of tips, including that Reddit has more cash than debt on its balance sheet and that liquid assets outweigh short-term liabilities. These factors, along with the expectation of net income growth this year, may contribute to a more nuanced understanding of Reddit’s financial position. There are 9 additional InvestingPro tips available for Reddit at https://www.investing.com/pro/RDDT that can further inform investment decisions.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.