Form 4: Reddit CLO Sells Shares Under Pre-Arranged 10b5-1 Plan

Reddit's Chief Legal Officer, Benjamin Seong Lee, reported the sale of 6,427 Class A Common Stock shares under a Rule 10b5-1 trading plan and a tax-related disposition of 9,405 shares.

Summary

• Benjamin Seong Lee, Chief Legal Officer of Reddit, Inc. (RDDT), reported changes in beneficial ownership of Class A Common Stock.
• On November 20, 2025, 9,405 shares were disposed of at a price of $187.78 per share. These shares were withheld by Reddit to satisfy tax withholding obligations and were not a market sale.
• On November 24, 2025, a total of 6,427 shares were sold in multiple transactions under a Rule 10b5-1 trading plan adopted on December 3, 2024.
• The sales on November 24, 2025, occurred at weighted average prices ranging from $186.46 to $195.45 per share.
• Following these transactions, Benjamin Seong Lee beneficially owns 67,613 shares of Reddit Class A Common Stock.

Sentiment

Score: 5

Explanation: The filing reports routine insider transactions, including tax-related dispositions and sales under a pre-arranged 10b5-1 plan. These are standard events for executives and do not inherently indicate positive or negative sentiment regarding the company's performance or prospects.

Positives

• The sales were executed at relatively high prices, ranging up to $195.45 per share.
• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which indicates a planned, non-discretionary sale and helps mitigate concerns about opportunistic insider selling.

Negatives

• The Chief Legal Officer reduced his direct beneficial ownership of Class A Common Stock by a total of 15,832 shares (9,405 tax withholding + 6,427 sales).

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Management Comments

• The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on December 3, 2024.
• These shares were withheld by the Company to satisfy the reporting person's tax withholding obligations. Not a market sale.

Industry Context

Insider transactions, particularly those executed under Rule 10b5-1 plans, are a common occurrence for executives of publicly traded companies. These plans allow insiders to sell a predetermined number of shares at a predetermined time or price, providing an affirmative defense against insider trading allegations and demonstrating a pre-planned approach to liquidity management.

Comparison to Industry Standards

• The use of a Rule 10b5-1 trading plan for executive stock sales is a standard corporate governance practice across the industry, aligning with SEC regulations designed to prevent insider trading.
• Many executives at comparable technology and social media companies, such as Meta Platforms (META) or Snap Inc. (SNAP), routinely utilize 10b5-1 plans for managing their equity compensation and personal financial planning.

Corporate Governance

Related Party Transactions

• The disposition of 9,405 shares on November 20, 2025, was a transaction with the company (Reddit, Inc.) to satisfy tax withholding obligations related to equity compensation.

Stakeholder Impact

• Shareholders: The sale of shares by a Chief Legal Officer could be perceived as a minor negative signal, though the 10b5-1 plan mitigates this. The overall impact on share price is likely minimal given the routine nature and relatively small volume compared to total outstanding shares.

Key Dates

Keywords

Reddit, RDDT, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Chief Legal Officer, Equity Transaction