Reddit (RDDT) 10% Owner Steve Huffman Exercises Options, Sells Shares

What Happened

• Steve Ladd Huffman (reported as a 10% owner) exercised 17,308 option/derivative shares on 2026-09-29, paying $25.29 per share for a total exercise cost of $437,719. He then sold those 17,308 shares in multiple open-market trades the same day, generating roughly $2,507,354 in gross proceeds. The filing also includes a zero-dollar derivative conversion entry for 17,308 shares reflecting the option-to-share conversion.

Key Details

• Transaction date: 2026-09-29 (Form filed 2026-10-01; appears timely).
• Exercise: 17,308 shares @ $25.29 = $437,719 (code M).
• Sales: 17,308 shares sold in multiple trades at prices roughly $142.09–$147.43 (weighted average prices by tranche were $142.44, $143.78, $144.64, $145.46, $146.62, $147.25), total proceeds ≈ $2,507,354 (codes S).
• Net effect: Acquired 17,308 shares via exercise and disposed of the same 17,308 shares — no net increase in shareholdings reported.
• Notable footnotes: Transactions were effected under a Rule 10b5-1 trading plan adopted May 20, 2026 (F1). Sales executed in multiple trades across the price ranges noted in the filing (F2–F7). Some securities are held in a grantor retained annuity trust of which Huffman is sole trustee and beneficiary (F8). Option vesting schedule described in filing (F9). The Form 4 includes the standard derivative conversion bookkeeping entry at $0 for the exercised shares.

Context

• This is an exercise-plus-sale (often called a sell-to-cover or immediate sale after exercise): Huffman paid the option strike to convert options into shares and sold those shares the same day, realizing the difference between market price and exercise cost.
• The trades were made under a preset 10b5-1 plan, which indicates preplanned transactions rather than discretionary, on-the-spot trading. As a reported 10% owner, these filings reflect principal-holder activity and are standard disclosure for large shareholders.