07:12 AM EDT, 03/28/2024 (MT Newswires) -- Reddit's ( RDDT ) recently debuted stock is reportedly drawing short sellers as it fell 5.5% in recent Thursday premarket activity following several insider sales from its senior management.

Reddit ( RDDT ) Chief Executive Steve Huffman, Chief Financial Officer Andrew Vollero, Chief Technology Officer Christopher Slowe and Chief Operating Officer Jennifer Wong all sold portions of their stakes in the company earlier this week, regulatory filings showed on Wednesday.

At least 7.1% of the Reddit's ( RDDT ) free share float has been sold short within the first few days of trading, Reuters reported Wednesday, citing analytics company Ortex.

"This is very high for a stock that just started trading, and is an indication that some market participants have a negative view of the future price of Reddit ( RDDT )," Ortex co-founder Peter Hillerberg said, according to the report.

Price: 54.55, Change: -3.2, Percent Change: -5.54