TL;DR
Reddit’s top executives have unloaded more than $25 million worth of company stock in recent weeks.
June 26, 2025
C-Suite Selling Spree
Chief Executive Officer Huffman Steve Ladd led the selling spree with a massive $15.48 million stock sale on June 16, 2025, disposing of shares at prices ranging from $122.59 to $126.38.
The same day, Chief Operating Officer Jennifer L sold $4.15 million worth of shares at $122.60 to $126.20 per share, while Chief Financial Officer Vollero Andrew offloaded $3.53 million in stock on June 13 at prices between $113.25 and $119.62.
The wave of insider selling continued this week when Chief Technology Officer Christopher Brian Slowe sold $2.18 million worth of Reddit stock on June 23, executing trades at prices ranging from $133.93 to $141.48 per share.
All transactions were conducted under pre-arranged Rule 10b5-1 trading plans, which allow executives to sell shares according to predetermined schedules.
Challenges Mount for Reddit
The coordinated selling comes at a challenging time for Reddit, which is currently valued at nearly $26 billion. The platform has experienced three consecutive months of declining user numbers, with a reported drop of 6 million users in May alone.
This user erosion has prompted analyst concerns, with Loop Capital lowering its price target for Reddit stock to $200 from $210, citing worries over slowing user growth.
Despite the headwinds, Reddit maintains strong financial fundamentals with an impressive 90.82% gross profit margin and a healthy current ratio of 12.46.
The company has also been actively expanding its revenue streams, recently introducing two AI-powered advertising features called “Reddit Insights” and “Conversation Summary Add-ons” designed to enhance brand engagement on the platform.
Legal Battles and Executive Turnover
Legal challenges add another layer of complexity to Reddit’s current situation. The company has filed a lawsuit against AI startup Anthropic, alleging unauthorized use of its user data.
Reddit claims Anthropic accessed its site over 100,000 times without authorization, highlighting growing tensions between social media platforms and AI companies over data usage rights.
Adding to the executive turnover, Reddit’s Chief Product Officer Pali Bhat recently announced his departure from the company, prompting a search for new product leadership as Reddit focuses on global expansion and product development.
Market Outlook
While the recent insider sales follow predetermined trading plans and don’t necessarily indicate lack of confidence in the company’s future, the timing coincides with a period of significant operational challenges for the social media giant.
Investors will be watching closely to see how Reddit navigates its user growth concerns while capitalizing on opportunities in the evolving digital advertising landscape.