Rush Street Interactive (NYSE:RSI) Reaches New 12-Month Low Following Analyst Downgrade

Key Points

• Rush Street Interactive fell to a new 52-week low of $11.50 after Craig Hallum downgraded the stock from Buy to Hold and set a $15 price target.
• Analyst sentiment remains mixed but leans positive: RSI has a consensus “Moderate Buy” rating and a $26.46 price target, despite recent target reductions from Needham and JPMorgan.
• The company reported quarterly EPS of $0.15, beating estimates, while revenue rose 38.8% year over year to $385.85 million. Insiders sold $9.2 million of stock over the past 90 days, though institutional investors—including BlackRock and Bank of America—also established new positions.

Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report) reached a new 52-week low during mid-day trading on Monday after Craig Hallum downgraded the stock from a buy rating to a hold rating. Craig Hallum now has a $15.00 price target on the stock. Rush Street Interactive traded as low as $11.50 and last traded at $12.08, with a volume of 501,347 shares traded. The stock had previously closed at $12.12.

A number of other analysts also recently weighed in on the company. New Street Research set a $35.00 price objective on Rush Street Interactive in a report on Thursday, July 23rd. Weiss Ratings upgraded Rush Street Interactive from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, October 21st. Morgan Stanley began coverage on Rush Street Interactive in a report on Monday, October 19th. They issued an "equal weight" rating and a $22.00 target price on the stock. Needham & Company LLC decreased their price target on Rush Street Interactive from $36.00 to $25.00 and set a "buy" rating for the company in a research report on Thursday. Finally, JPMorgan Chase & Co. cut their price target on Rush Street Interactive from $22.00 to $18.00 and set a "neutral" rating for the company in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.46.

Insider Buying and Selling at Rush Street Interactive

In other Rush Street Interactive news, COO Mattias Stetz sold 20,000 shares of the firm's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $19.87, for a total value of $397,400.00. Following the sale, the chief operating officer owned 137,874 shares of the company's stock, valued at $2,739,556.38. This trade represents a 12.67% decrease in their position. The sale was disclosed in a legal filing 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, CFO Kyle Sauers sold 23,000 shares of Rush Street Interactive stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $20.31, for a total value of $467,130.00. Following the completion of the sale, the chief financial officer owned 583,526 shares in the company, valued at approximately $11,851,413.06. This represents a 3.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 402,664 shares of company stock worth $9,204,199 over the last 90 days. Company insiders own 52.89% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in RSI. GSA Capital Partners LLP purchased a new stake in shares of Rush Street Interactive in the 2nd quarter worth approximately $1,996,000. Quantinno Capital Management LP purchased a new position in Rush Street Interactive during the first quarter valued at $1,769,000. BlackRock Inc. bought a new stake in Rush Street Interactive in the second quarter worth $448,435,000. Bank of America Corp DE bought a new stake in Rush Street Interactive in the second quarter worth $34,015,000. Finally, Tidal Investments LLC purchased a new stake in shares of Rush Street Interactive in the second quarter worth $1,323,000. 24.78% of the stock is currently owned by institutional investors.

Rush Street Interactive Price Performance

The business has a 50 day moving average price of $21.52 and a 200 day moving average price of $23.74. The stock has a market capitalization of $2.77 billion, a PE ratio of 36.65 and a beta of 1.81.

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

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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