Sarah E. Farrell, a director of Reddit (NASDAQ: RDDT), completed an indirect purchase of 10,500 shares of the company's Class A Common Stock on March 13, 2026. The trades were executed at an average price of $132.26 per share, representing a total outlay of approximately $1.38 million. The reported price range for the transactions was between $131.83 and $132.50.
Following the transaction, Farrell's indirect holdings through Waygrove Partnership LP stand at 61,000 shares. In addition to those indirect holdings, Farrell directly owns 7,899 shares of Reddit's Class A Common Stock.
The insider purchase arrives against a backdrop of declining market value for Reddit's shares. Over the last six months the stock has fallen 47%, even though the company has remained profitable over the trailing twelve months. InvestingPro analysis cited in public reports indicates the stock appears undervalued at current market levels, noting a quoted share price of $144.33 and offering 16 additional ProTips for investors seeking further context.
Reddit's recent operating performance provides a mixed picture. For the fourth quarter of 2025 the company reported revenue of $725.6 million, a 70% increase year-over-year. Adjusted EBITDA rose 112% to $327 million, a result that surpassed analyst expectations. In response to the quarter's results, Needham maintained a Buy rating and a $300 price target on the stock, while Truist Securities raised its price target to $275 from $270, describing the results as a "Classic Beat & Raise." The company also announced a new $1 billion share buyback program.
Advertising momentum was a notable driver of growth in the period. Citizens reported that Reddit's advertising revenue expanded 75% year-over-year during the fourth quarter, an acceleration the company highlighted as contributing to the strong top-line performance.
Yet the company faces challenges on the engagement front. Reddit's reported time spent on the platform has declined for six straight months on a global basis. In the United States specifically, time spent on Reddit fell 10.5% year-over-year in January.
Regulatory issues have also affected the company. The U.K. Information Commissioner's Office fined Reddit for failing to adequately protect children's personal information.
Summary of the situation:
- Director Sarah E. Farrell made an indirect purchase of 10,500 Class A shares on March 13, 2026 at an average price of $132.26, total value $1.38 million; price range $131.83 to $132.50.
- After the transaction Farrell indirectly holds 61,000 shares through Waygrove Partnership LP and directly holds 7,899 Class A shares.
- Reddit delivered strong fourth-quarter 2025 financials - $725.6 million in revenue (up 70% year-over-year) and adjusted EBITDA of $327 million (up 112%) - and announced a $1 billion buyback program, but has experienced declining user time spent and a regulatory fine in the U.K.