David Habiger, a director at Reddit (RDDT), recently bought over 1,500 shares across two transactions. The buys increased his position by 6%, and came to a total cost just over $200,000. Habiger was the last director to buy shares back in March 2024, with a 3,000 share pickup.
Otherwise, Reddit insiders have been large and consistent sellers, which is typical for a company that has recently gone public and has considerable insider holdings.
Overall, Reddit insiders own 18.2% of shares.
The social media platform is up 150% over the past year, but the recent market pullback has taken shares 50% off of their recent highs.
Reddit has seen a 71% rise in revenue and a 283% surge in earnings growth, but is still unprofitable. Shares are pricey at 14 times sales, but that’s down from a peak of nearly 30. If growth can continue, and the company can turn a profit, shares may yet break to new all-time highs.
Action to take: With the stock getting cut in half following the recent market growth scare, aggressive investors may want to consider a position here for a rebound in the coming months.
For traders, the August $200 calls, last trading for about $4.75, could see high double-digit returns if shares get an oversold rally over the coming months. Traders may want to take quick profits given today’s fearful and headline-driven markets.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.