SAN FRANCISCO—Jennifer L. Wong, Chief Operating Officer of Reddit, Inc. (NASDAQ:RDDT), executed a series of stock sales on October 16, 2024, amounting to approximately $2.54 million. The transactions involved the sale of Class A Common Stock at prices ranging from $74.18 to $77.74 per share.
Wong sold a total of 33,334 shares in multiple transactions. These sales were conducted under a pre-established Rule 10b5-1 trading plan, which was adopted on May 21, 2024. The sales were executed in several trades with specific price ranges: $73.65 to $74.60, $74.67 to $75.66, $75.67 to $76.41, $76.70 to $77.69, and $77.70 to $77.87.
Following these transactions, Wong retains direct ownership of 1,542,457 shares of Reddit's Class A Common Stock. Additionally, she holds indirect ownership of 161,000 shares through the MorMa Trust, dated June 22, 2021.
These transactions were reported in a Form 4 filing with the Securities and Exchange Commission and were signed by Julie Rogers (NYSE:ROG), Attorney-in-Fact, on October 18, 2024.
In other recent news, Reddit has been making significant strides in its financial performance. The company's Q2 revenue surged by 54%, reaching $281.2 million and surpassing analyst estimates of $253.6 million. The net loss narrowed to $10.1 million from $41.1 million a year ago, while the adjusted EBITDA turned positive at $39.5 million.
Jefferies, an investment banking firm, has initiated coverage on Reddit shares with a Buy rating, projecting the company's EBITDA to more than double in the next two years. The firm's optimism is fueled by Reddit's user growth which is considered to be the highest among its peers.
In terms of analyst ratings, JMP Securities reiterated its Market Outperform rating for Reddit, maintaining an $84.00 price target. This decision was influenced by Reddit's recent announcement of machine translation rollout in over 35 new countries, a move expected to boost user growth.
Furthermore, B.Riley initiated coverage on Reddit, setting a Buy rating and a price target of $75.00, highlighting Reddit's early monetization phase as a key driver for future growth. Similarly, Piper Sandler revised its outlook on Reddit, raising the stock's price target to $70.00 while maintaining an Overweight rating.
These recent developments highlight Reddit's strong financial performance and promising growth trajectory as recognized by multiple analyst firms.
InvestingPro Insights
To complement the recent stock sales by Reddit's COO Jennifer L. Wong, let's delve into some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Reddit holds more cash than debt on its balance sheet, which is a positive indicator of the company's financial health. This strong liquidity position aligns with another InvestingPro Tip stating that Reddit's liquid assets exceed its short-term obligations. These factors suggest that the company is well-positioned to manage its financial commitments and potentially invest in growth opportunities.
InvestingPro Tips also reveal that analysts expect Reddit's sales to grow in the current year, with net income projected to increase as well. This positive outlook is further supported by the fact that two analysts have revised their earnings estimates upwards for the upcoming period. These projections paint an optimistic picture of Reddit's financial trajectory, which may explain the high trading multiples observed in the market.
It's worth noting that Reddit is trading near its 52-week high and has shown strong returns over various time frames, including the last week, month, three months, and year. This performance suggests robust investor confidence in the company's prospects.
For readers interested in a more comprehensive analysis, InvestingPro offers 17 additional tips for Reddit, providing a deeper understanding of the company's financial position and market performance.
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