Reddit’s chief operating officer, Jennifer Wong, sold 60,000 Class A shares on 14 September 2026, according to a Form 4 filed with the Securities and Exchange Commission. The disposal, executed at prices between $158.04 and $165.90 a share, was worth roughly $9.7m.
That works out to an average sale price of $162.33, for a total of $9,739,800, according to data compiled by MarketBeat. The sale followed related stock-option exercises and was made under a Rule 10b5-1 trading plan, Investing.com reported, meaning the timing was set in advance rather than tied to any specific news.
A third insider sale in three weeks
Wong’s disposal is the third insider sale at Reddit (NYSE: RDDT) that Motley Fool has flagged in as many weeks. A director sold shares worth $820,070 on 27 August, when the stock’s one-year decline stood at 26%. Chief executive Steve Huffman sold 18,000 shares for $2.7m on 31 August, with the decline then at 34%. By the time Wong’s trade was disclosed, the figure had widened to roughly 36%, as first reported by The Motley Fool.
The pattern of escalating percentages tracks the stock’s slide from its all-time high. Reddit shares closed at $270.71 on 18 September 2025 and had fallen to $157.60 by 16 September 2026, a drop of about 42% from that peak. The stock traded between $149.21 and $157.60 during the following session, before last changing hands at $151.66 on 17 September, down 1.43% on the day.
Profits keep climbing as the shares keep falling
The decline sits awkwardly against Reddit’s underlying numbers. Quarterly revenue has risen every period since early 2024, reaching $804.9m in the second quarter of 2026, up from $242.9m two years earlier, filings show. Net income has followed the same path, from a $575.1m loss in the first quarter of 2024 to a $252.8m profit in the second quarter of 2026, according to Reddit’s 10-Q filings with the SEC.
Diluted earnings per share moved from a loss of $8.19 in the first quarter of 2024 to $1.25 in the most recent quarter, the filings show. None of that growth has stopped the share price falling roughly a third over the past year, a divergence that has become a recurring feature of Reddit’s insider-trading disclosures rather than a one-off.
No sign of a rush for the exits
Short-sellers have not piled in around the disclosure. FINRA’s daily short-sale volume ratio for Reddit held in a narrow band of 0.57 to 0.72 across the fortnight spanning the trade, showing no spike in bearish positioning that might suggest the market read the sale as a warning sign, according to FINRA data.
The broader backdrop for richly valued technology and social-media names has turned less forgiving. The 10-year Treasury yield stood at 5.00% on 15 September, up from 4.97% the prior session, while the 10-year/2-year spread narrowed to 0.27 percentage points from 0.33, according to Federal Reserve Bank of St. Louis data. A flattening curve alongside elevated long-term yields has generally weighed on growth stocks trading on high multiples, of which Reddit remains one despite its swing to profitability.
What the filings suggest
Nothing in the Form 4 or the two prior insider disclosures points to a change in Reddit’s operating trajectory. Each sale has coincided with option exercises and pre-set trading plans rather than open-market discretionary selling, and the company’s revenue and profit trends have moved in the opposite direction to the share price throughout.
Investors will get a fuller picture when Reddit reports third-quarter results, the next scheduled point at which the market can test whether the stock’s decline reflects valuation reset or something more fundamental.
This article is for information only and is not investment advice or a recommendation to buy or sell any asset. Markets move quickly; figures are correct as sourced at the time of writing. Always do your own research before making financial decisions.
