Core Insights - Reddit (NYSE: RDDT) had its IPO on March 21, with shares opening at $50 and currently trading at $124.62, reflecting a 70.25% monthly rally and 147.06% year-to-date returns [2] - The stock experienced a significant price swing following a strong Q3 2024 earnings report, rising 49.95% from a previous low of $81.74 [3] - Insider selling, including a recent $9.3 million trade by CEO Steve Huffman and a sale of 5,000 shares by board member Gale Mary Porter, raises concerns about the stock's long-term prospects [3][4] Company Performance - RDDT shares have shown resilience in the competitive social media market, maintaining a positive trajectory since the IPO, with notable price increases in recent months [2] - The stock's performance has been characterized by volatility, with mixed sentiment regarding its ability to sustain high valuations [3] Insider Trading Activity - Gale Mary Porter sold 5,000 shares at an average price of $114.4, totaling $572,000, which may indicate a strategic profit-taking move [4] - The sale was not conducted under a 10b5-1 plan, attracting regulatory scrutiny, although Porter still holds 46,309 shares, suggesting a lack of strong bearish sentiment [5]
Reddit stock hit by major insider trading activity