Just one week after the initial public offering, Reddit CEO Steve Huffman and other top executives sold their shares late Wednesday. As a result, RDDT stock fell overnight.
Steve 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.
The size of these transactions was expected by investors and did not come as a surprise to many. Despite this decline in value following the sales made by key officers and executives of the company’s board members on Wednesday night (which was less than what they had priced the IPO at), Reddit hit a record of 74.9 intraday on Tuesday before closing at around 58 with a drop of approximately 4% in late trade that day (a decline of about 11% from its highest trading point).
Reddit raised $867M through its IPO on March 2nd when it was priced at the top end of its range ($34 per share), indicating that there is still confidence in the company’s potential despite some recent controversies surrounding free speech and censorship issues on its platform which could impact future growth prospects or investor sentiment towards it moving forward into uncharted waters as it continues to navigate these complexities while remaining focused on delivering innovative solutions to address user needs while maintaining transparency and accountability within our community-driven ecosystems like Reddit’s unique ones..