Reddit (NASDAQ: RDDT) CEO Steve Huffman sold 14,697 shares of the companys Class A Common Stock on March 31, 2026, netting approximately $2.39 million. The disposals occurred across multiple trades with executed prices ranging from $126.40 to $134.84 per share. The companys stock is trading at $136.05, a level that reflects a 41% decline so far this year but remains 24% higher than its price a year ago.
Prior to the stock sales, Mr. Huffman exercised stock options to purchase 18,000 shares of Class A Common Stock at an exercise price of $25.29 per share, for a total cash outlay of $455,220. The subsequent sales were carried out pursuant to a pre-established Rule 10b5-1 trading plan that Huffman adopted on May 19, 2025.
Following these transactions, Huffmans reported holdings include 411,195 Class A shares held by The XYZ Revocable Trust. Additional holdings are listed as 68,966 shares in the EVS Trust - I, 6,897 shares in the MLH Trust - I, and 6,897 shares in the JDI Trust - I.
Company performance and analyst response
Reddit posted fourth-quarter 2025 revenue of $725.6 million, representing a 70% year-over-year increase and surpassing Needhams estimate by 9%. Adjusted EBITDA increased by 112% year-over-year to $327 million, outpacing expectations by 16%. In reaction to the results, Truist Securities raised its price target for Reddit to $275 from $270 while maintaining a Buy rating and characterizing the results as a "Classic Beat & Raise" performance. The company also unveiled a $1 billion share buyback program.
Citizens reiterated its Market Outperform rating and its $300 price target for Reddit, citing a 75% year-over-year increase in advertising revenue for the quarter. At the same time, Citizens flagged a decline in user engagement metrics, noting global time spent on the platform has fallen, with U.S. time spent down 10.5% year-over-year in January.
Regulatory action
Separately, Reddit was fined £14.47 million by the United Kingdoms Information Commissioners Office after the regulator determined the company did not sufficiently protect childrens personal information. The ICO specifically criticized Reddit's age verification measures as inadequate.
Valuation and research access
According to InvestingPro analysis cited in company commentary, Reddit appears undervalued at current market levels when compared to Fair Value estimates. Investors seeking more detailed company analysis are directed to Reddit's Pro Research Report, which is listed among more than 1,400 reports available for U.S. equities through the referenced platform.
Context and takeaway
The timing of the CEO's share sales, which followed an in-the-money option exercise and were conducted under a standing 10b5-1 plan, is disclosed alongside a set of mixed signals for the business: strong revenue and profitability expansion, an aggressive buyback program and positive analyst target revisions on the one hand, and declining time-spent metrics plus a significant regulatory penalty on the other. The companys share price continues to show notable year-to-date weakness despite a positive 12-month return.