Reddit (RDDT.US) Price Target 2026/2027: 40% Upside – Rating and Stock Analysis

153,45
-1,17%
Price history for Reddit (RDDT.US) – stock price at 153.45 $, August 2026
Reddit stock price – price development 2026. Updated Aug 6, 2026.
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Reddit Price Target 2026: Analysts See 41% Upside

The average price target for Reddit is $216.35. This price target represents the analysts' view of the stock price over the next 12 months. The stock may be undervalued, because the price target is higher than the current price. The stock is 40,99% below the target, which can point to potential returns within the next 12 months if the analysts' view proves right. Also consider the stock's valuation ratios such as P/E, P/S and P/B, plus the technical analysis further down the page, for the full picture.

Is Reddit overvalued or undervalued?

Reddit is currently undervalued with a gap of 41% relative to the price target.


The current price is $153.45, which places Reddit in the undervalued category. The stock is considered undervalued when the price is below $194.72, and overvalued when the price exceeds $237.99.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Reddit, the fair value range lies between $194.72 and $237.99.


See the full price target analysis for Reddit →

Analyst Ratings for Reddit stock in 2026: Buy

26 analysts cover Reddit. The ratings are mixed, with 57.7% Buy, 38.5% Hold and 3.8% Sell. The average price target is $216.35, which gives an upside of 41% from the current price.

Consensus: Buy (3.88/5)
Strong Buy
10 (38.5%)
Buy
5 (19.2%)
Hold
10 (38.5%)
Strong Sell
1 (3.8%)
Strong Sell Sell Hold Buy Strong Buy
3.88 out of 5 based on 26 analysts

About Reddit – Internet Content & Information

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California. Read more about the company

Key Figures for Reddit

$ 30,8B Market cap
$ 2,8B Revenue
Internet Content & Information Industry
37.20 P/E
11.08 P/S
8.24 P/B
USA Listed on exchange

What kind of stock is Reddit?

Growth stock Quality stock

Reddit is classified as a growth stock and quality stock. This means the stock combines several attractive traits, strong financial health (Piotroski 7/9).

Score Overview for Reddit

💰 Value Score 23/100 (Low)
⭐ Quality Score 88/100 (Very High)
🚀 Momentum Score 19/100 (Very Low)
📊 Total Score 43/100

⚠️ 1 red flag identified

Our analysis has identified 1 potential risk factor in Reddit that investors should be aware of.

⚠️ High short interest: 11.7% of the shares are sold short – many professional investors are betting on price declines.

📈 Valuation

Reddit trades at a P/E ratio of 37.2, which is above the market average. The forward P/E is 31.0 (17% lower), which suggests the market expects rising earnings. The P/S ratio is 11.1 (high — the market pays a premium for the revenue). The P/B ratio is 8.2. The PEG ratio is 1.01.

💵 Profitability & Growth

Reddit has a profit margin of 31.4% (excellent) and an operating margin of 28.8%. Return on equity (ROE) is 30.7% — excellent return on equity. Return on assets (ROA) is 15.7%. The latest quarterly earnings grew 177.8% year over year — strong growth.

🏦 Financial Health

The Piotroski score is 7 out of 9 — good financial health. Altman Z2 is 17.00 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 9.7% — low debt, a solid balance sheet.

🚀 Momentum & Short Interest

Short interest is 11.74% — very high, the market is skeptical.

Insider Trading in Reddit 2026: The Signal Is negative

In 2026, insiders at Reddit have made 20 transactions, all of which were sales. On a net basis, insiders took 69,445,000 $ out of the stock. Active insiders include Wong Jennifer L., Huffman Steve Ladd, Reynolds Michelle Marie and others. In the short term (last 3 months), the insider signal is negative.

Short-Term Signal (3 months): Negative

Insiders have exclusively sold shares over the last 3 months.

Over the last 3 months: 0 purchases and 14 sales. A net 46,578,447 $ out of the stock.

Long-Term Signal (all transactions): Negative

Insiders have exclusively sold shares in the recent period. This can suggest management sees limited opportunity.

Across the last 20 transactions: 0 purchases and 20 sales. A net 69,445,000 $ out of the stock.

Latest sale: Wong Jennifer L. sold 39,167 shares at 207 $ each on 2026-07-15.

Who is selling: Wong Jennifer L., Huffman Steve Ladd, Reynolds Michelle Marie, Vollero Andrew, Lee Benjamin Seong and others.

Latest Insider Trades in Reddit (2026)

The table shows the last 20 reported insider transactions in Reddit. Green rows are purchases, red rows are sales. The data is based on official filings.

Transaction date Name Type Number of shares Price per share ($) Total amount ($)
2026-07-15 Wong Jennifer L. Sell 39,167 207 8,100,911
2026-07-15 Huffman Steve Ladd Sell 18,000 206 3,702,420
2026-07-01 Reynolds Michelle Marie Sell 808 200 161,600
2026-06-30 Huffman Steve Ladd Sell 18,000 175 3,142,980
2026-06-16 Wong Jennifer L. Sell 39,166 182 7,125,862
2026-06-15 Huffman Steve Ladd Sell 18,000 182 3,272,040
2026-05-29 Huffman Steve Ladd Sell 18,000 176 3,169,620
2026-05-20 Wong Jennifer L. Sell 38,112 155 5,902,787
2026-05-20 Vollero Andrew Sell 10,320 155 1,598,362
2026-05-20 Reynolds Michelle Marie Sell 1,265 155 195,923

Who is buying and selling Reddit shares in 2026?

The following insiders have sold shares: Wong Jennifer L., Huffman Steve Ladd, Reynolds Michelle Marie, Vollero Andrew, Lee Benjamin Seong and others. In total, 69,445,000 $ was sold across 20 transactions. Insider trades are legal transactions in which executives and board members buy or sell shares of their own company. These transactions are reported to the SEC and are publicly available.

Reddit Short Selling 2026: 11.7% Sold Short

Very high short interest: 11.7% of the free float
Short % of free float
11.7%
Assessment
Very high short interest
Short squeeze risk
High
Data source
SEC
Updated daily
The stock has a very high share of short selling. Between 10-20% of the freely traded shares are sold short, which points to considerable bearish sentiment. A positive earnings report or unexpectedly good news can trigger a short squeeze with sharp price gains.

What does this mean for you as an investor?
A short interest of 11.7% means that 11.7% of the freely traded shares in Reddit have been borrowed and sold by investors betting on falling prices. On positive surprises (e.g. a strong earnings report), short sellers can be forced to buy back shares quickly to close their positions, which can cause a short squeeze with sharp price gains in a short time.

Data is updated daily based on official filings with the SEC.
Short Interest Scale
0% 2% 5% 10% 20%+
Low Moderate High Very High Extreme
11.7%

When Does Reddit Report Earnings?

The next earnings date for Reddit is not yet available. Check the company's investor calendar for more information.



Technical Analysis of Reddit 2026 – Signal: Sell

Overall Technical Signal: Sell

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated August 6, 2026.

Technical analysis of Reddit (RDDT.US) – RSI 41, MACD negative (bearish), daily candlestick chart August 2026
Reddit technical analysis – candlestick chart with RSI and MACD. Updated Aug 6, 2026.

Trend Analysis of Reddit, Inc.

Reddit, Inc. is in a short-term downtrend. The price of $155.26 is 12.9% below the 20-day average ($178.20). Medium term, the picture is negative: the price is 11.7% below the 50-day average ($175.86). Long term, the stock is 13.5% below the 200-day average ($179.45), which signals a long-term downtrend.

Death Cross: The 50-day average (175.86) is below the 200-day average (179.45), which is a classic bearish signal for Reddit, Inc..

Is Reddit, Inc. overbought or oversold?

Reddit, Inc. has an RSI of 40.6. The stock sits in the lower part of the neutral zone, which points to weak momentum without being oversold. In the current downtrend, be careful about reading this as a buying opportunity.

MACD Analysis for Reddit, Inc.

Daily MACD: MACD is negative (-6.134), which means the short-term trend is bearish (the 12-day EMA is below the 26-day EMA). MACD is below the signal line (-2.564) by 3.570, which confirms growing negative momentum in the downtrend.

Weekly MACD: MACD5 is positive (0.355), which indicates a broader bullish long-term trend. MACD5 is above the signal line (-1.910) by 2.265, which confirms rising long-term momentum.

Overall MACD assessment: The daily and weekly MACD give conflicting signals. The long-term trend is bullish, but the short-term trend is bearish. Short-term momentum is still falling – a deeper pullback is possible.

Risk Profile for Reddit, Inc.

Reddit, Inc. has an annual standard deviation of 69.6%, which classifies the stock as high risk. Sizeable price swings are normal, and the stock requires a higher risk tolerance.

Overall Technical Conclusion for Reddit, Inc.

Trend: Negative. The price trades below SMA50 and SMA200.

MACD trend (zero line): Daily bearish (-6.134). Weekly bullish (0.355).

MACD momentum (signal): Daily falling. Weekly rising.

RSI: 40.6 – neutral.

Technical signal: Sell

The trend is negative and MACD is below the zero line, which confirms the bearish momentum. Consider reducing the position or setting a stop-loss.

Frequently Asked Questions About Reddit stock in 2026

Should you buy Reddit stock now?
No, the technical signal for Reddit is currently SELL. Reddit trades at $153.45 as of 8/6/2026. The overall technical signal is: Sell. The technical analysis shows the following: MACD is negative (bearish trend) at -6.134 with falling momentum (signal: -2.564); RSI is at 40.6 (neutral zone); the stock is in a short-term downtrend (price below the 20-day average); the analyst price target of $216.35 points to 41.0% upside. The stock is in a broader downtrend (below SMA50/SMA200). Buying in a downtrend is generally not recommended. This is a technical observation based on current data, not investment advice.
What is the price target for Reddit stock?
The average analyst price target for Reddit is $216.35. The current price is $153.45, which gives an upside of 41.0%. Based on this, the stock is considered undervalued. The fair value range (±10% of the price target) is between $194.72 and $237.99.
Is Reddit a dividend stock?
No, Reddit does not currently pay a dividend to shareholders. The company reinvests its profits in growth instead of paying dividends.
What is the risk of Reddit stock?
Reddit is rated as a stock with high risk. the annual standard deviation is 69.6%, which classifies the stock as high risk.
Is Reddit overvalued?
No, Reddit is considered undervalued based on the analyst price target (41.0% upside). Reddit has the following valuation ratios: a P/E ratio of 37.2 (highly valued), a P/S ratio of 11.1, a P/B ratio of 8.2. The analyst price target suggests that the stock is undervalued by 41.0%.
Is Reddit overbought?
No, Reddit is not overbought. RSI is at 40.6 (neutral zone). The technical indicators show: RSI is at 40.6 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 13.9% below the 20-day average (short-term downtrend). In addition, MACD is negative with falling momentum (bearish).
When is the next Reddit earnings report?
The date of the next earnings report for Reddit has not been published yet. Check the company's investor calendar for updates.
Is Reddit shorted?
Yes, Reddit is shorted with 11.7% of the free float sold short. This is a very high level of short selling, which points to considerable bearish sentiment. A positive earnings report or unexpectedly good news can trigger a short squeeze with sharp price gains. Data is updated daily based on official filings with the SEC.
Are insiders buying Reddit stock?
No, insiders are not buying Reddit shares – they are net sellers. Over the last 3 months, insiders have made 0 purchases and 14 sales. On a net basis, 46,578,447 $ worth of shares were sold. Across the last 20 reported transactions, the split is 0 purchases and 20 sales, with a net 69,445,000 $ sold. Active sellers include Wong Jennifer L., Huffman Steve Ladd, Reynolds Michelle Marie and others. Insider selling can have several explanations (e.g. planned 10b5-1 sales, portfolio diversification or taxes), but sustained selling by several insiders is worth watching closely.
Is Reddit a good stock?
Based on our total score, Reddit is rated as a mediocre stock with a total score of 43 out of 100. The stock scores around average on value, quality and momentum – it sits near the median in our database. The score is made up of Value: 23/100, Quality: 88/100, Momentum: 19/100. In addition: analysts see 41.0% upside to the price target; technical signal: Sell. Whether Reddit is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Reddit stock?
The outlook for Reddit based on current data: the average analyst price target is $216.35 (+41.0%); the stock is in a downtrend (below SMA50 and SMA200); the P/E ratio is 37.2 (high – the market expects growth). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Reddit stock falling?
Reddit is falling right now. The technical indicators show: the price is 13.9% below the 20-day average; MACD is negative with falling momentum (bearish signal); short interest is 11.7% (high – many are betting on a decline); insiders have mostly been selling the stock recently. For the latest context, see our technical analysis, insider section and news overview above.
How high can Reddit go?
The average analyst price target for Reddit is $216.35, which corresponds to a potential gain of 41.0% from the current price of $153.45. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Reddit fall?
We lack enough history to give a specific floor for Reddit. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Reddit do?
Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company... The company belongs to the Kommunikation sector, more specifically the Internet Content & Information industry, is headquartered in USA, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Reddit as an investment.
Did Reddit raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Reddit. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history and the news overview above.
Is Reddit making money or losing money?
Yes, Reddit is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 31.4% — which is excellent. The operating margin (profit before interest and taxes) is 28.8%. At a P/E ratio of 37.2, you currently pay 37.2 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Reddit go bankrupt?
The bankruptcy risk of Reddit is rated as low. Altman Z2 (a model for assessing financial distress) is 17.00 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 7 — which is strong. Debt relative to equity is 10% (low). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Reddit have a lot of debt?
No, Reddit has low debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 10%. For the kommunikation sector, anything below 80% counts as low debt. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector.