Riskified (NYSE:RSKD) Sees Large Volume Increase - Here's Why

Key Points

• Riskified’s trading volume surged 65% to 1.72 million shares, while the stock rose to $7.588 from a prior close of $7.14.
• Analyst sentiment remains mixed: Riskified has an average “Hold” rating and a consensus price target of $6.50, below its reported trading price, despite some firms raising targets and maintaining bullish views.
• The company met quarterly EPS expectations at $0.02 and exceeded revenue estimates with $98.69 million, but remains unprofitable; insiders sold 5.35 million shares worth $30.2 million over the past three months.

Shares of Riskified Ltd. (NYSE:RSKD - Get Free Report) saw unusually-high trading volume on Thursday . 1,716,194 shares were traded during mid-day trading, an increase of 65% from the previous session's volume of 1,042,559 shares.The stock last traded at $7.5880 and had previously closed at $7.14.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on RSKD. Keefe, Bruyette & Woods upped their target price on Riskified from $5.50 to $6.25 and gave the stock a "market perform" rating in a research note on Thursday, August 13th. DA Davidson reissued a "buy" rating and set a $7.50 price target on shares of Riskified in a report on Monday, August 24th. Wall Street Zen upgraded Riskified from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Riskified in a research note on Friday, August 14th. Finally, The Goldman Sachs Group lifted their target price on Riskified from $4.75 to $5.50 and gave the company a "sell" rating in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Riskified presently has an average rating of "Hold" and a consensus price target of $6.50.

Riskified Price Performance

The business's 50-day simple moving average is $5.88 and its two-hundred day simple moving average is $5.06. The stock has a market cap of $1.13 billion, a price-to-earnings ratio of -70.10 and a beta of 1.38.

Riskified (NYSE:RSKD - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported $0.02 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.02. Riskified had a negative net margin of 4.23% and a negative return on equity of 3.93%. The company had revenue of $98.69 million during the quarter, compared to the consensus estimate of $89.18 million. Equities research analysts forecast that Riskified Ltd. will post -0.03 earnings per share for the current year.

Insider Buying and Selling at Riskified

In other news, Director Erez Shachar sold 435,900 shares of Riskified stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $5.02, for a total transaction of $2,188,218.00. Following the sale, the director directly owned 2,193,976 shares of the company's stock, valued at approximately $11,013,759.52. This trade represents a 16.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Assaf Feldman sold 450,000 shares of the business's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $6.01, for a total value of $2,704,500.00. Following the sale, the insider owned 1,417,371 shares in the company, valued at approximately $8,518,399.71. This trade represents a 24.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 5,346,001 shares of company stock worth $30,243,545. 17.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Riskified

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. R Squared Ltd grew its position in Riskified by 57.8% in the 1st quarter. R Squared Ltd now owns 19,813 shares of the company's stock worth $78,000 after purchasing an additional 7,257 shares in the last quarter. Engineers Gate Manager LP lifted its position in shares of Riskified by 13.7% during the 2nd quarter. Engineers Gate Manager LP now owns 64,591 shares of the company's stock worth $326,000 after buying an additional 7,799 shares in the last quarter. T3 Companies LLC purchased a new position in shares of Riskified in the 4th quarter worth approximately $54,000. Modern Wealth Management LLC purchased a new position in shares of Riskified in the 1st quarter worth approximately $56,000. Finally, State of Wyoming grew its holdings in shares of Riskified by 16.4% in the first quarter. State of Wyoming now owns 107,785 shares of the company's stock valued at $423,000 after acquiring an additional 15,195 shares in the last quarter. 58.98% of the stock is currently owned by institutional investors and hedge funds.

Riskified Company Profile

Riskified Ltd. is a technology company that provides fraud and risk-management solutions for e-commerce businesses. Its platform uses data analytics, machine learning and network insights to help merchants distinguish legitimate customers from fraudulent transactions, reduce payment-related losses and improve the online shopping experience.

The company's product offerings include solutions designed to protect merchants from chargebacks, identify and prevent policy abuse, secure customer accounts and support payment approval decisions.

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