Reddit Executives Disclose Large Share Sales, Contributing to Overnight Stock Dip

Shares of Reddit Drop as Insiders Sell Soon After IPO

Reddit CEO Steve Huffman and other top executives and board members disclosed share sales late Wednesday, just one week after the social network’s initial public offering. This news caused RDDT stock to fall overnight.

Huffman sold 500,000 shares at an average price of $32.30, totaling $16.15 million. CFO Vollero Andrew sold 71,765 shares for $2.318 million, while COO Jennifer Wong sold 514,000 shares for $16.602 million. Additionally, CTO Christopher Slowe sold 185,000 shares for $5.975 million, and Chief Accounting Officer Michelle Reynolds sold 3,033 shares for $97,966. Board member David Habiger also sold 3,000 shares for $102,000, totaling $41.245 million in Reddit shares sold.

Given the size of these transactions, it was expected that some Reddit share sales would occur by key officers such as Huffman and others involved in the company’s operations. Following these sales on Wednesday night, Reddit stock fell by 4.85% to 54.95 in late trade before dropping even further to 57.75 in intraday trading on Thursday morning. Despite this decline in value over the past few days following its IPO on March 28th at a price of 34 per share on the high end of the expected range, Reddit hit a new record of 74

Leave a Reply