Reddit Stock Price Takes a Hit After Key Executives Sell Shares Post-IPO

Shares of Reddit Drop as Insiders Sell Soon After IPO

RDDT stock took a hit overnight after Reddit CEO Steve Huffman and other key executives disclosed share sales late Wednesday, just one week after the social network’s initial public offering. The sell-off was led by Huffman, who 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 joined in the selling spree by selling 3,000 shares for $102,000.

Reddit stock fell 4.85% to 54.95 in late trade after these sales were made by key officers of the company which was not unexpected considering the size of transactions that were made. Despite this decline in stock prices overnight on Wednesday trading session saw Redditt hit a record of 74.9 intraday on Tuesday but it failed to hold onto it as it dropped further to 57.75 by end of the day’s session with an overall decline of around 11%.

Reddit’s IPO was priced at a premium of $34 per share on March 20th at the top end of the expected range which left investors wondering about what could have caused such a sudden drop in stock value post IPO . If you are looking for top stocks or growth opportunities then be sure to consider the tools and strategies recommended by IBD (Investors Business Daily) to optimize your investment decisions

Leave a Reply