Wall Street Zen Upgrades Rush Street Interactive (NYSE:RSI) to Buy

Key Points

• Wall Street Zen upgraded Rush Street Interactive to “buy” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $27.54.
• RSI reported quarterly EPS of $0.15, beating estimates and rising from $0.09 year over year; revenue grew 38.8% to $385.9 million but came in slightly below expectations.
• The stock opened at $12.11, down 11.1%, amid several analyst price-target cuts and concerns that October trends could push full-year revenue toward the low end of guidance.

Rush Street Interactive (NYSE:RSI - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other brokerages have also weighed in on RSI. Jefferies Financial Group reissued a "buy" rating on shares of Rush Street Interactive in a report on Thursday. JPMorgan Chase & Co. lowered their price objective on Rush Street Interactive from $22.00 to $18.00 and set a "neutral" rating for the company in a report on Thursday. Citizens Jmp reduced their target price on Rush Street Interactive from $34.00 to $24.00 and set a "market outperform" rating on the stock in a report on Thursday. New Street Research set a $35.00 target price on Rush Street Interactive in a report on Thursday, July 23rd. Finally, Susquehanna decreased their target price on 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. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $27.54.

Rush Street Interactive Stock Down 11.1%

Shares of NYSE RSI opened at $12.11 on Friday. Rush Street Interactive has a fifty-two week low of $11.88 and a fifty-two week high of $34.53. The business has a 50 day moving average price of $21.52 and a two-hundred day moving average price of $23.74. The firm has a market cap of $2.81 billion, a PE ratio of 36.70 and a beta of 1.71.

Rush Street Interactive (NYSE:RSI - Get Free Report) last announced its earnings results on Wednesday, October 28th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.02. The company had revenue of $385.85 million for the quarter, compared to analyst estimates of $388.05 million. Rush Street Interactive had a return on equity of 24.46% and a net margin of 2.56%. Rush Street Interactive's quarterly revenue was up 38.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.09 EPS. On average, analysts anticipate that Rush Street Interactive will post 0.49 earnings per share for the current year.

Insider Buying and Selling at Rush Street Interactive

In related news, CEO Richard Schwartz sold 47,222 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $19.88, for a total transaction of $938,773.36. Following the sale, the chief executive officer owned 374,036 shares in the company, valued at $7,435,835.68. This represents a 11.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jack Markell bought 1,500 shares of the business's stock in a transaction on Friday, September 25th. The stock was acquired at an average cost of $19.35 per share, for a total transaction of $29,025.00. Following the acquisition, the director directly owned 18,883 shares of the company's stock, valued at $365,386.05. The trade was a 8.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders sold 603,998 shares of company stock worth $14,814,268 in the last quarter. 52.89% of the stock is currently owned by corporate insiders.

Institutional Trading of Rush Street Interactive

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Covestor Ltd increased its holdings in shares of Rush Street Interactive by 809.3% during the third quarter. Covestor Ltd now owns 3,537 shares of the company's stock valued at $72,000 after purchasing an additional 3,148 shares during the period. Oregon Public Employees Retirement Fund lifted its holdings in Rush Street Interactive by 9.3% in the third quarter. Oregon Public Employees Retirement Fund now owns 25,900 shares of the company's stock worth $527,000 after purchasing an additional 2,200 shares during the period. VCI Wealth Management LLC acquired a new stake in Rush Street Interactive in the third quarter worth about $851,000. ProShare Advisors LLC grew its position in Rush Street Interactive by 7.0% in the 3rd quarter. ProShare Advisors LLC now owns 15,523 shares of the company's stock valued at $316,000 after buying an additional 1,012 shares in the last quarter. Finally, State of Wyoming grew 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 in the last quarter. 24.78% of the stock is currently owned by institutional investors and hedge funds.

Key Rush Street Interactive News

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

• Positive Sentiment: Q3 earnings beat expectations: RSI reported adjusted earnings of $0.15 per share, up from $0.09 a year earlier and ahead of the roughly $0.14 Wall Street estimate. Revenue increased 38.8% year over year to approximately $385.9 million, with online casino operations contributing 75% of total revenue. Rush Street Interactive Q3 Earnings Top Estimates
• Positive Sentiment: Analysts remain broadly constructive: Barclays, Wells Fargo, Oppenheimer, Needham and Citizens JMP maintained bullish ratings, including overweight, outperform, buy and market outperform recommendations. Even after reductions, their targets imply substantial upside from current levels. Barclays Lowers Rush Street Interactive Price Target
• Neutral Sentiment: Full-year guidance was reiterated or updated around consensus: RSI’s 2026 revenue outlook remains approximately $1.56 billion to $1.60 billion, while the latest guidance of $1.6 billion is in line with analyst expectations. This limits the risk of a major forecast cut but offers little incremental upside.
• Negative Sentiment: Revenue fell short of estimates: Despite strong growth, Q3 sales were below the approximately $388.1 million consensus forecast. Investors may be concerned that growth is not translating into results above expectations. Rush Street Interactive Reports Sales Below Estimates
• Negative Sentiment: October trends point to the low end of guidance: Management indicated that current October performance may lead RSI toward the lower end of its full-year revenue range, raising concerns about slowing momentum.
• Negative Sentiment: Multiple price targets were cut: JPMorgan reduced its target from $22 to $18 and shifted to neutral, while other firms lowered targets substantially despite retaining positive ratings. The revisions signal more cautious expectations following the earnings report.

Rush Street Interactive Company Profile

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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