Reddit (RDDT) CEO Huffman logs Class B-to-A conversion and tax share withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Reddit, Inc. director and CEO Steve Huffman, through The XYZ Revocable Trust, reported routine equity movements involving Class A and Class B Common Stock. The trust converted 2,955 shares of Class B Common Stock into 2,955 shares of Class A Common Stock, described as a conversion of a derivative security.
The issuer also withheld 40,336 shares of Class A Common Stock held by the same trust to satisfy Huffman’s tax withholding obligations, explicitly noted as not being a market sale. After these transactions, the XYZ Revocable Trust held 373,814 shares of Class A Common Stock and 3,496,440 shares of Class B Common Stock indirectly for Huffman, while three additional trusts reported indirect Class A holdings.
Positive
- None.
Negative
- None.
Insights
Huffman’s Form 4 shows a routine share conversion and tax withholding, with large indirect holdings remaining.
The filing shows The XYZ Revocable Trust converting 2,955 shares of Class B Common Stock into the same number of Class A Common Stock, classified as a derivative conversion. This is a structural change in share class, not a new open-market purchase.
The issuer withheld 40,336 Class A shares at $154.88 per share to cover Steve Huffman’s tax obligations, explicitly described as not a market sale. Following these events, the trust still holds 373,814 Class A shares and 3,496,440 Class B shares indirectly for Huffman, indicating the transactions affect only a small portion of his overall position.
Insider Trade Summary
2,955 shares exercised/converted
Mixed
6 txns
Insider
Huffman Steve Ladd
Role
CEO & President
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Conversion | Class B Common Stock | 2,955 | $0.00 | -- |
| Conversion | Class A Common Stock | 2,955 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 40,336 | $154.88 | $6.25M |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
Holdings After Transaction:
Class B Common Stock — 3,496,440 shares (Indirect, By The XYZ Revocable Trust);
Class A Common Stock — 414,150 shares (Indirect, By The XYZ Revocable Trust)
Footnotes (1)
- These shares were withheld by the Issuer to satisfy the reporting person's tax withholding obligations. Not a market sale. The securities are directly held by a grantor retained annuity trust, of which the Reporting Person is sole trustee and beneficiary. The Class B Common Stock is convertible at any time at the option of the holder into the Issuer's Class A Common Stock on a one-to-one basis.
Key Figures
Tax withholding shares: 40,336 shares Class A
Tax withholding reference price: $154.88 per share
Converted shares: 2,955 shares
+5 more
8 metrics
Tax withholding shares
40,336 shares Class A
Withheld by issuer to satisfy tax obligations
Tax withholding reference price
$154.88 per share
Price used for 40,336 Class A shares withheld
Converted shares
2,955 shares
Class B Common Stock converted into Class A Common Stock
Class A holdings after transaction
373,814 shares
Class A Common Stock held by The XYZ Revocable Trust
Class B holdings after transaction
3,496,440 shares
Class B Common Stock held by The XYZ Revocable Trust
Exercise/Conversion shares
2,955 shares
ExerciseShares in transactionSummary
Tax withholding count
1 transaction
TaxWithholdingCount in transactionSummary
Holding entries
3 entries
HoldingEntries in transactionSummary
Key Terms
Class A Common Stock, Class B Common Stock, grantor retained annuity trust, derivative security, +2 more
6 terms
Class A Common Stock financial
"These shares were withheld by the Issuer to satisfy the reporting person's tax withholding obligations."
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.
Class B Common Stock financial
"The Class B Common Stock is convertible at any time at the option of the holder into the Issuer's Class A Common Stock on a one-to-one basis."
A class B common stock is one of multiple types of a company’s ordinary shares that carries specific rights—often different voting power or dividend priority—compared with other classes. For investors it matters because those differences affect how much influence you have over company decisions, the income you might receive, and how freely the shares trade; think of it like owning a car with different keys: some keys let you start the engine and open the trunk, others only unlock the door.
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.
derivative security financial
"Conversion of derivative security"
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
tax withholding obligations financial
"These shares were withheld by the Issuer to satisfy the reporting person's tax withholding obligations."
revocable trust financial
"By The XYZ Revocable Trust"
A revocable trust is a legal arrangement where the person who creates it keeps control and can change or cancel the trust at any time, while naming who will manage and receive the assets later. Think of it like a flexible folder for your investments and property that can be relabeled or reworked as circumstances change; it matters to investors because it determines how ownership is recorded, how easily assets transfer on incapacity or death, and whether holdings bypass public probate proceedings.
FAQ
What did Reddit (RDDT) CEO Steve Huffman report in this Form 4 filing?
Steve Huffman reported a conversion of 2,955 shares of Class B Common Stock into Class A Common Stock and a tax-related share withholding of 40,336 Class A shares, all held indirectly through The XYZ Revocable Trust, with no open-market sale disclosed.
What are Steve Huffman’s indirect Reddit (RDDT) holdings after these transactions?
After the reported transactions, The XYZ Revocable Trust holds 373,814 shares of Class A Common Stock and 3,496,440 shares of Class B Common Stock indirectly for Steve Huffman, with additional indirect Class A holdings reported in three other trusts named JDI, MLH, and EVS.