Reddit (RDDT) Stock: CTO Offloads $1.29M as Jefferies Maintains Optimism Despite Price Cut

TLDR

• Chief Technology Officer Christopher Slowe liquidated 7,500 shares of Class A common stock for approximately $1.29 million on March 9, with execution prices spanning $133.45 to $138.86 per share.
• On March 10, Slowe transferred 144,644 shares as gifts, bringing his direct ownership down to 38,413 shares.
• Shares of RDDT have plummeted 46% during the past half-year, despite InvestingPro analysts labeling it as trading below fair value.
• Jefferies lowered its target from $285 to $250 while maintaining its Buy recommendation, describing the decline as a “compelling buying opportunity.”
• The company delivered Q4 2025 revenue of $725.6 million, representing 70% annual growth, and unveiled a $1 billion share repurchase initiative.

Christopher Slowe, Reddit’s Chief Technology Officer, executed a sale of 7,500 shares of Class A Common Stock on March 9, 2026, netting approximately $1.29 million through the transaction. The sale occurred via multiple trades with share prices fluctuating between $133.45 and $138.86.

Reddit, Inc., RDDT

This transaction followed Slowe’s exercise of options covering 7,500 shares at $7.92 per share — with a grant price of $0.00 — marking a particularly active trading period for the executive.

The following day, March 10, Slowe executed gift transfers totaling 144,644 shares. Following these transactions, his direct ownership stands at 38,413 shares, with an additional 164,828 shares held within The Slowe Family Trust established on January 26, 2012.

This insider activity unfolds against a backdrop where RDDT stock has tumbled 46% across the previous six months, representing a challenging period for what was recently considered a high-flying stock.

Nevertheless, InvestingPro’s analysis suggests the shares are trading below their Fair Value estimate, earning placement on the platform’s undervalued equities watchlist.

Jefferies Reduces Price Target While Maintaining Positive Outlook

On March 10, Jefferies lowered its price objective for Reddit from $285 to $250, though the firm retained both its Buy rating and Top Pick designation.

The investment bank conducted a survey of approximately 1,000 American adults to assess user engagement patterns across various social media platforms. The findings highlighted Reddit’s ability to deliver advertisers distinctive low-funnel targeting capabilities and incremental audience reach unavailable through competing platforms.

Jefferies also noted that Reddit’s revenue per user trades at roughly a 70% discount relative to industry peers — positioning this valuation gap as a potential growth catalyst rather than a weakness.

Impressive Q4 Performance Despite Regulatory Challenges

Reddit’s fourth quarter 2025 financial results provided substantial positive data for shareholders. The company generated $725.6 million in revenue, marking a 70% increase from the prior year. Adjusted EBITDA climbed 112% annually, surpassing analyst projections by 16%.

Needham reaffirmed its Buy rating with a $300 price target following the earnings release. Truist Securities elevated its target from $270 to $275, maintaining a Buy stance, and characterized the quarter as a “Classic Beat & Raise.”

Alongside these results, Reddit unveiled a $1 billion stock repurchase authorization.

However, not all developments were favorable. The UK’s Information Commissioner’s Office imposed a £14.47 million penalty on Reddit for inadequate handling of minors’ personal information.

Regulators determined that Reddit failed to implement adequate age verification measures until July 2025, depending instead on user self-reporting, which authorities deemed insufficient for compliance.

Citizens maintained its Market Outperform rating on Reddit notwithstanding the fine, pointing to robust advertising revenue momentum — 75% year-over-year expansion in Q4.

The firm did highlight one area of concern: declining global platform engagement metrics. Within the United States, time spent on the platform contracted 10.5% year-over-year in January.

Jefferies’ survey findings and Reddit’s Q4 financial disclosure represent the most current information available to Wall Street analysts.

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