Wells Fargo slashes price target on Reddit Inc [RDDT] – find out why.

Reddit Inc [NYSE: RDDT] stock went on a downward path that fall over -1.24% on Thursday, amounting to a one-week price decrease of less than -0.34%.

Over the last 12 months, RDDT stock dropped by -12.80%. The one-year Reddit Inc stock forecast points to a potential upside of 8.34. The average equity rating for RDDT stock is currently 1.89, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $26.30 billion, with 129.15 million shares outstanding and 114.43 million shares in the current float. Compared to the average trading volume of 8.30M shares, RDDT stock reached a trading volume of 4352898 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Reddit Inc [RDDT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RDDT shares is $155.48 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RDDT stock is a recommendation set at 1.89. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Reddit Inc shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on July 01, 2025. While these analysts kept the previous recommendation, Cleveland Research raised their target price to Buy. The new note on the price target was released on June 25, 2025, representing the official price target for Reddit Inc stock. Previously, the target price had yet another raise to $125, while RBC Capital Mkts analysts kept a Sector Perform rating on RDDT stock.

The Price to Book ratio for the last quarter was 11.84, with the Price to Cash per share for the same quarter was set at 10.57. Price to Free Cash Flow for RDDT in the course of the last twelve months was 83.96 with Quick ratio for the last quarter at 12.46.

RDDT Stock Performance Analysis:

Reddit Inc [RDDT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.34. With this latest performance, RDDT shares gained by 12.93% in over the last four-week period, additionally sinking by -13.53% over the last 6 months – not to mention a drop of -12.80% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RDDT stock in for the last two-week period is set at 54.24, with the RSI for the last a single of trading hit 7.58, and the three-weeks RSI is set at 8.13 for Reddit Inc [RDDT]. The present Moving Average for the last 50 days of trading for this stock 125.63, while it was recorded at 144.72 for the last single week of trading, and 133.80 for the last 200 days.

Insight into Reddit Inc Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Reddit Inc [RDDT] shares currently have an operating margin of 2.25% and a Gross Margin at 89.73%. Reddit Inc’s Net Margin is presently recorded at 8.07%.

Reddit Inc (RDDT) Capital Structure & Debt Analysis

According to recent financial data for Reddit Inc. ( RDDT), the Return on Equity (ROE) stands at 5.77%, suggesting modest shareholder returns. The Return on Assets (ROA) is 5.25%, reflecting the company’s efficiency in generating profits from its assets. Additionally, Reddit Inc’s Return on Invested Capital (ROIC) is 5.23%, showcasing its effectiveness in deploying capital for earnings.

Reddit Inc (RDDT) Efficiency & Liquidity Metrics

Based on Reddit Inc’s (RDDT) latest financial statements, the Debt-to-Equity Ratio is 0.01%, indicating its reliance on debt financing relative to shareholder equity.

Reddit Inc (RDDT) Efficiency & Liquidity Metrics

From an operational efficiency perspective, Reddit Inc. (RDDT) effectively leverages its workforce, generating an average of $52373.49 per employee. The company’s liquidity position is robust, with a Current Ratio of 12.46% and a Quick Ratio of 12.46%, indicating strong ability to cover short-term liabilities.

Reddit Inc [RDDT] Institutonal Ownership Details

There are presently around $85.10%, or 91.40% of RDDT stock, in the hands of institutional investors. The top three institutional holders of RDDT stocks are: FMR LLC with ownership of 3.02 million shares, which is approximately 1.8362%. VANGUARD GROUP INC, holding 2.44 million shares of the stock with an approximate value of $$156.21 million in RDDT stocks shares; and VANGUARD GROUP INC, currently with $$133.49 million in RDDT stock with ownership which is approximately 1.2711%.

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