Reddit (NYSE: RDDT) CEO sells 18,000 shares via trust, retains stake
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Reddit, Inc. CEO Steve Huffman, through The XYZ Revocable Trust, reported option exercises and related share sales of Class A Common Stock on May 29, 2026. The trust exercised stock options to acquire 18,000 shares at an exercise price of $25.29 per share, then sold 18,000 shares in multiple open-market transactions at prices generally between about $167 and $176 per share under a Rule 10b5-1 trading plan adopted on May 19, 2025. After these transactions, the trust held 391,814 shares of Class A Common Stock indirectly for Huffman, alongside additional indirect holdings in other family trusts.
Positive
- None.
Negative
- None.
Insights
Huffman exercised options for 18,000 Reddit shares and sold the same amount under a pre-set 10b5-1 plan, leaving a large remaining stake.
The filing shows a classic exercise-and-sell pattern. A trust associated with CEO Steve Huffman exercised stock options to acquire 18,000 Reddit Class A shares at an exercise price of $25.29 per share, then sold 18,000 shares in multiple open-market trades.
All sale transactions are coded “S” and described as open-market sales, while the acquisition is coded “M” for an option exercise. A footnote states these were made under a Rule 10b5-1 trading plan adopted on May 19, 2025, indicating the timing was pre-planned rather than opportunistic.
After the transactions, The XYZ Revocable Trust still holds 391,814 Class A shares for Huffman, so the 18,000-share sale represents a relatively small portion of the trust’s position. With remaining indirect holdings in other trusts also disclosed, this appears to be routine liquidity management rather than a thesis-changing move, so the overall signal is neutral.
Insider Trade Summary 10b5-1
Net Seller: 18,000 shares ($3,134,316)
Net Sell
13 txns
Insider
Huffman Steve Ladd
Role
CEO & President
Sold
18,000 shs ($3.13M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Stock Option (Right to Buy) | 18,000 | $0.00 | -- |
| Exercise | Class A Common Stock | 18,000 | $25.29 | $455K |
| Sale | Class A Common Stock | 600 | $167.59 | $101K |
| Sale | Class A Common Stock | 1,000 | $168.61 | $169K |
| Sale | Class A Common Stock | 800 | $169.98 | $136K |
| Sale | Class A Common Stock | 600 | $170.96 | $103K |
| Sale | Class A Common Stock | 1,893 | $173.30 | $328K |
| Sale | Class A Common Stock | 4,266 | $174.27 | $743K |
| Sale | Class A Common Stock | 2,141 | $175.29 | $375K |
| Sale | Class A Common Stock | 6,700 | $176.09 | $1.18M |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
Holdings After Transaction:
Stock Option (Right to Buy) — 1,153,255 shares (Indirect, By The XYZ Revocable Trust);
Class A Common Stock — 391,814 shares (Indirect, By The XYZ Revocable Trust)
Footnotes (1)
- This transaction reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on May 19, 2025. The sales were executed in multiple trades at prices ranging from $167.05 to $168.02. The price reported reflects the weighted average sale price. The Reporting Person undertakes to provide upon request by the staff of the Securities and Exchange Commission, the Issuer, or a security holder of the Issuer, full information regarding the number of shares sold at each separate sale price within the ranges set forth in footnotes 2 to 9 to this Form 4. The sales were executed in multiple trades at prices ranging from $168.28 to $168.89. The sales were executed in multiple trades at prices ranging from $169.54 to $170.48. The sales were executed in multiple trades at prices ranging from $170.62 to $171.23. The sales were executed in multiple trades at prices ranging from $172.76 to $173.75. The sales were executed in multiple trades at prices ranging from $173.77 to $174.74. The sales were executed in multiple trades at prices ranging from $174.84 to $175.82. The sales were executed in multiple trades at prices ranging from $175.84 to $176.49. The securities are directly held by a grantor retained annuity trust, of which the Reporting Person is sole trustee and beneficiary. The option vests over five years on each quarterly anniversary of December 25, 2023, subject to the Reporting Person's continued employment or service relationship with the Issuer on each such vesting date.
Key Figures
Shares sold: 18,000 shares
Sale price range: $167.05–$176.49/share
Option exercise shares: 18,000 shares
+4 more
7 metrics
Shares sold
18,000 shares
Total Class A shares sold on May 29, 2026
Sale price range
$167.05–$176.49/share
Multiple open-market trades per Form 4 footnotes
Option exercise shares
18,000 shares
Stock options exercised into Class A Common Stock
Option exercise price
$25.29/share
Exercise price for 18,000 stock options
Shares held after trades
391,814 shares
Class A shares held by The XYZ Revocable Trust
Trading plan adoption date
May 19, 2025
Rule 10b5-1 plan covering reported transactions
Option expiration
December 25, 2033
Expiration date for the exercised stock option grant
Key Terms
Rule 10b5-1 trading plan, grantor retained annuity trust, stock option, weighted average sale price, +2 more
6 terms
Rule 10b5-1 trading plan regulatory
"transactions were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on May 19, 2025"
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
grantor retained annuity trust financial
"The securities are directly held by a grantor retained annuity trust, of which the Reporting Person is sole trustee and beneficiary"
A grantor retained annuity trust (GRAT) is an estate-planning tool where the person who creates the trust transfers assets into it but receives fixed cash payments (an annuity) from the trust for a set number of years; whatever remains after that term passes to designated beneficiaries. It matters to investors because it can shift future appreciation of assets out of the creator’s taxable estate—like putting an asset into a timed vending machine that pays you fixed amounts while any extra value that grows inside the machine goes to heirs with reduced gift or estate tax consequences.
stock option financial
"Stock Option (Right to Buy)"
A stock option is a contract that gives you the right to buy or sell a company's stock at a specific price within a certain time frame. People use them to potentially make money if the stock's price moves favorably or to protect against losses. It's like holding a coupon that can be used to buy or sell stock at a set price later on.
weighted average sale price financial
"The price reported reflects the weighted average sale price"
Class A Common Stock financial
"security_title": "Class A Common Stock""
Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.
open-market sale financial
"transaction_action": "open-market sale""
An open-market sale is when a shareholder sells existing shares directly on a public exchange to any willing buyer, rather than through a private deal. Think of it like putting goods on a busy market stall where price is set by supply and demand; for investors it matters because such sales increase available supply, can put short-term downward pressure on the stock price, and signal changes in liquidity or investor confidence.
FAQ
What did Reddit (RDDT) CEO Steve Huffman report in this Form 4?
Steve Huffman reported an option exercise for 18,000 Reddit Class A shares at an exercise price of $25.29, followed by open-market sales of 18,000 shares through The XYZ Revocable Trust on May 29, 2026, under a pre-established Rule 10b5-1 trading plan.
What options did Steve Huffman exercise in Reddit (RDDT) stock?
A trust associated with Steve Huffman exercised stock options for 18,000 Reddit Class A shares at an exercise price of $25.29 per share. A footnote explains this option grant vests quarterly over five years from December 25, 2023, subject to continued service with Reddit.