Needham & Company LLC Has Lowered Expectations for Rush Street Interactive (NYSE:RSI) Stock Price

Key Points

• Needham & Company lowered Rush Street Interactive’s price target from $36 to $25 while maintaining a “buy” rating, implying 66.58% upside from the prior close. Analysts overall remain moderately bullish, with a consensus target of $30.42.
• RSI reported quarterly earnings of $0.15 per share, beating the $0.13 consensus, while revenue rose 38.8% year over year to $385.85 million but fell slightly short of estimates.
• The stock opened at $15.01 and was trading near its 12-month low, while insiders sold approximately $14.8 million of shares over the past 90 days, including sales by the CEO and CFO.

Rush Street Interactive (NYSE:RSI - Get Free Report) had its price target cut by investment analysts at Needham & Company LLC from $36.00 to $25.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price target would indicate a potential upside of 66.58% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. Oppenheimer lifted their target price on shares of Rush Street Interactive from $30.00 to $36.00 and gave the stock an "outperform" rating in a research report on Friday, July 24th. Weiss Ratings raised shares of Rush Street Interactive from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, October 21st. Susquehanna dropped their target price on shares of Rush Street Interactive from $37.00 to $27.00 and set a "positive" rating for the company in a research report on Friday, October 9th. JPMorgan Chase & Co. cut their target price on shares of Rush Street Interactive from $30.00 to $22.00 and set a "neutral" rating on the stock in a research note on Tuesday, October 20th. Finally, New Street Research set a $35.00 price target on shares of Rush Street Interactive in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $30.42.

Rush Street Interactive Trading Down 2.6%

Shares of RSI opened at $15.01 on Thursday. Rush Street Interactive has a 12 month low of $14.82 and a 12 month high of $34.53. The stock has a 50 day moving average of $22.03 and a 200 day moving average of $23.80. The company has a market capitalization of $3.48 billion, a price-to-earnings ratio of 51.75 and a beta of 1.71.

Rush Street Interactive (NYSE:RSI - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.02. The firm had revenue of $385.85 million during the quarter, compared to the consensus estimate of $388.05 million. Rush Street Interactive had a net margin of 2.33% and a return on equity of 18.88%. The company's revenue was up 38.8% on a year-over-year basis. During the same quarter last year, the company earned $0.09 earnings per share. As a group, equities research analysts predict that Rush Street Interactive will post 0.49 earnings per share for the current year.

Insider Activity

In other news, CFO Kyle Sauers sold 23,000 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $26.56, for a total transaction of $610,880.00. Following the completion of the transaction, the chief financial officer directly owned 606,526 shares of the company's stock, valued at $16,109,330.56. The trade was a 3.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Richard Schwartz sold 111,112 shares of Rush Street Interactive stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $28.02, for a total value of $3,113,358.24. Following the completion of the sale, the chief executive officer directly owned 421,258 shares of the company's stock, valued at $11,803,649.16. The trade was a 20.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 603,998 shares of company stock valued at $14,814,268 over the last ninety days. 52.89% of the stock is currently owned by corporate insiders.

Institutional Trading of Rush Street Interactive

Institutional investors and hedge funds have recently modified their holdings of the company. ProShare Advisors LLC increased its stake in Rush Street Interactive by 7.0% in the 3rd quarter. ProShare Advisors LLC now owns 15,523 shares of the company's stock worth $316,000 after buying an additional 1,012 shares during the period. State of Wyoming boosted its position in Rush Street Interactive by 23.3% in the 3rd quarter. State of Wyoming now owns 31,491 shares of the company's stock valued at $640,000 after buying an additional 5,959 shares during the period. Sterling Capital Management LLC boosted its position in Rush Street Interactive by 945.1% in the 3rd quarter. Sterling Capital Management LLC now owns 3,731 shares of the company's stock valued at $76,000 after buying an additional 3,374 shares during the period. Nisa Investment Advisors LLC boosted its position in Rush Street Interactive by 53.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 8,301 shares of the company's stock valued at $169,000 after buying an additional 2,904 shares during the period. Finally, First Citizens Bank & Trust Co. bought a new position in Rush Street Interactive in the 3rd quarter worth about $212,000. 24.78% of the stock is currently owned by institutional investors.

Rush Street Interactive News Summary

Here are the key news stories impacting Rush Street Interactive this week:

• Positive Sentiment: Third-quarter earnings were $0.15 per share, above the $0.13–$0.14 analyst consensus and up from $0.09 a year earlier. Net income increased 93% year over year to $28.7 million, while adjusted EBITDA rose 73% to $62.2 million. Rush Street Interactive Q3 Earnings Top Estimates
• Positive Sentiment: Revenue reached $385.9 million, up 39% year over year, and North American monthly active users reached a quarterly record. Online casino operations contributed approximately 75% of revenue, highlighting RSI’s higher-margin casino exposure. Rush Street Interactive: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Management reiterated its full-year 2026 revenue and adjusted EBITDA guidance, reducing the risk of an immediate outlook cut but offering no new upside to expectations. Rush Street Interactive Announces Third Quarter 2026 Results and Reiterates Full Year Guidance
• Negative Sentiment: Quarterly revenue of $385.9 million was below the approximately $388.1 million consensus estimate. The modest sales miss may be driving the weaker stock reaction despite the earnings beat, particularly given RSI’s elevated valuation and recent trading near its 52-week low. Rush Street Interactive Reports Sales Below Analyst Estimates

About Rush Street Interactive

Rush Street Interactive, Inc is an online gaming and sports betting company that operates regulated internet casino and sportsbook platforms. Its primary consumer brands include BetRivers, PlaySugarHouse and RushBet, offering online casino games, sports wagering and related digital gaming products through websites and mobile applications.

The company serves customers in regulated markets across the United States and Latin America, with operations also extending to select international jurisdictions.

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