Reddit, Inc. (RDDT) – Form 4 insider transaction filed 18-Jun-2025
Chief Operating Officer Jennifer L. Wong reported a same-day option exercise and share sale executed on 16-Jun-2025 under a previously adopted Rule 10b5-1 trading plan (adopted 21-May-2024).
- Option exercise (Code “M”): 33,333 Class A shares acquired from the exercise of employee stock options with a $5.35 strike price, expiring 12-Jun-2028. No cash proceeds are disclosed on Form 4, but the company receives the $5.35 per share exercise price (≈ $178k).
- Open-market sales (Code “S”): The same 33,333 shares were sold in five tranches at weighted‐average prices between $122.05 and $126.43, generating gross proceeds of roughly $4.1 million.
- Post-transaction ownership: Wong now holds 1,428,007 Class A shares directly (-33,333 versus pre-trade) and 161,000 shares indirectly through the MorMa Trust, plus 369,787 unexercised options.
The filing shows a modest reduction (≈2.3%) in Wong’s direct equity stake while preserving a sizeable holding. The transactions were pre-scheduled, limiting the signalling value regarding insider sentiment. From a liquidity perspective, Reddit receives marginal cash from the option exercise; the net share count is unaffected because the acquired shares were immediately sold.
Reddit Chief Accounting Officer Michelle Marie Reynolds reported a sale of 909 shares of Class A Common Stock on June 16, 2025, at a price of $125 per share. Following the transaction, Reynolds retains direct ownership of 41,368 shares.
The sale was executed according to a Rule 10b5-1 trading plan established on March 11, 2025, which provides an affirmative defense against insider trading allegations by establishing predetermined trading parameters.
- Transaction Type: Sale (S)
- Total Transaction Value: $113,625
- Ownership Type: Direct
- Trading Plan: Rule 10b5-1 compliant
This insider sale represents approximately 2.2% of Reynolds' directly held shares in Reddit, suggesting a routine portfolio management transaction rather than a significant shift in position.