On January 20, 2026, Jennifer L. Wong, Chief Operating Officer of Reddit, Inc. (NASDAQ: RDDT), completed the sale of 31,939 shares of the company’s Class A Common Stock, accumulating proceeds totaling approximately $8.8 million. Share prices during these transactions fluctuated between $219.13 and $228.47. Although Reddit’s stock has declined by 6.21% in the past week, it has nonetheless realized a significant gain of 47.15% over the previous six months. According to InvestingPro’s analysis, Reddit currently appears overvalued relative to its Fair Value estimate.
Wong’s sales occurred over multiple transactions and involved both shares she holds directly and indirectly. Of the total shares sold, 29,781 were directly owned by Wong, while 2,158 shares were held indirectly through the MorMa Trust dated June 22, 2021. Post-transaction, Wong’s direct ownership stands at 1,157,369 shares and an additional 50,124 shares are held indirectly via the trust. Based on Reddit’s market capitalization of $40.58 billion, Wong’s remaining direct holdings equate to a market value close to $248 million at prevailing share prices.
These stock dispositions were carried out pursuant to a pre-existing Rule 10b5-1 trading plan that Wong established on May 16, 2025, indicating an arranged and systematic approach to share sales. Reddit is slated to announce its forthcoming earnings report within 14 days, specifically on February 5, 2026.
Financial metrics for Reddit reveal robust gross profit margins of 91.21% and a balance sheet characterized by a surplus of cash over debt obligations. Additional insights are furnished by InvestingPro through a Pro Research Report that offers 17 supplementary ProTips and extensive financial data, equipping investors with actionable intelligence ahead of the company’s earnings release.
In parallel to insider transactions, analyst coverage for Reddit has expanded with divergent views emerging. Evercore ISI has initiated coverage with an Outperform rating and assigned a price target of $320, emphasizing the company’s strong revenue growth prospects with an anticipated three-year compound annual growth rate (CAGR) between 30% and 40%, and an EBITDA CAGR ranging from 40% to 50%. Conversely, Cantor Fitzgerald commenced coverage with a Neutral rating and established a price target of $240. This firm underscored Reddit’s solid foothold among digital media platforms, citing its sizable user base and engagement levels.
Moreover, Reddit has begun piloting a feature involving verified user profiles marked by grey checkmarks. This initiative aims to bolster platform transparency and potentially enhance user trust and engagement, reflecting the company’s strategic efforts to strengthen its service offerings amid competitive pressures.
Overall, these developments illustrate a multifaceted outlook on Reddit’s market positioning and stock valuation, with insider selling activity, forthcoming earnings, and evolving analyst opinions shaping investor considerations.