Rush Street Interactive (NYSE:RSI) Shares Down 5.2% - Here's Why

Key Points

• Rush Street Interactive shares fell 5.2% to about $19.26, with trading volume 67% below the average daily level.
• Analysts remain broadly bullish, assigning the stock a “Moderate Buy” consensus rating and an average price target of $34.20, well above its recent trading price.
• The company reported strong quarterly results, with revenue rising 46.3% year over year to $393.78 million and earnings of $0.15 per share matching estimates; however, insiders have sold about $14.8 million worth of shares over the past three months.

Shares of Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report) fell 5.2% during trading on Friday. The company traded as low as $19.25 and last traded at $19.2580. Approximately 818,925 shares traded hands during trading, a decline of 67% from the average daily volume of 2,458,373 shares. The stock had previously closed at $20.32.

Analyst Ratings Changes

Several analysts have recently weighed in on RSI shares. Citizens Jmp reissued a "market outperform" rating and issued a $34.00 price target on shares of Rush Street Interactive in a research note on Tuesday, September 22nd. Wells Fargo & Company lifted their price target on shares of Rush Street Interactive from $35.00 to $36.00 and gave the company an "overweight" rating in a research report on Thursday, July 30th. Needham & Company LLC upped their price objective on Rush Street Interactive from $33.00 to $36.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Citigroup reiterated a "market outperform" rating on shares of Rush Street Interactive in a research report on Tuesday, September 22nd. Finally, Jefferies Financial Group reissued a "buy" rating and set a $39.00 target price on shares of Rush Street Interactive in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Rush Street Interactive has an average rating of "Moderate Buy" and a consensus target price of $34.20.

Rush Street Interactive Stock Performance

The company has a market capitalization of $4.47 billion, a price-to-earnings ratio of 66.48 and a beta of 1.71. The firm has a 50-day simple moving average of $24.35 and a two-hundred day simple moving average of $26.28.

Rush Street Interactive (NYSE:RSI - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.15 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.15. Rush Street Interactive had a net margin of 2.33% and a return on equity of 18.88%. The business had revenue of $393.78 million for the quarter, compared to analysts' expectations of $367.75 million. During the same quarter in the prior year, the company earned $0.11 earnings per share. The business's quarterly revenue was up 46.3% on a year-over-year basis. As a group, equities analysts forecast that Rush Street Interactive, Inc. will post 0.49 EPS for the current fiscal year.

Insider Activity

In other Rush Street Interactive news, COO Mattias Stetz sold 20,000 shares of the stock in a transaction that occurred 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 directly owned 137,874 shares of the company's stock, valued at approximately $2,739,556.38. This represents a 12.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jack A. Markell acquired 1,500 shares of Rush Street Interactive stock in a transaction dated Friday, September 25th. The stock was purchased at an average price of $19.35 per share, for a total transaction of $29,025.00. Following the completion of the acquisition, the director directly owned 18,883 shares in the company, valued at approximately $365,386.05. This represents a 8.63% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold a total of 603,998 shares of company stock valued at $14,814,268 over the last three months. 52.89% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rush Street Interactive

Several large investors have recently bought and sold shares of RSI. CoreCap Advisors LLC increased its holdings in shares of Rush Street Interactive by 629.6% in the 3rd quarter. CoreCap Advisors LLC now owns 13,132 shares of the company's stock valued at $267,000 after acquiring an additional 11,332 shares during the last quarter. Tidal Investments LLC purchased a new stake in Rush Street Interactive during the second quarter worth approximately $1,323,000. Integrated Wealth Concepts LLC acquired a new position in Rush Street Interactive in the second quarter valued at approximately $70,000. Allworth Financial LP increased its stake in Rush Street Interactive by 38.1% in the second quarter. Allworth Financial LP now owns 1,917 shares of the company's stock valued at $57,000 after purchasing an additional 529 shares during the last quarter. Finally, Arizona State Retirement System increased its stake in Rush Street Interactive by 11.4% in the second quarter. Arizona State Retirement System now owns 30,002 shares of the company's stock valued at $892,000 after purchasing an additional 3,081 shares during the last quarter. Hedge funds and other institutional investors own 24.78% of the company's stock.

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 consumer-facing brands include BetRivers and PlaySugarHouse, which offer online casino games, sports wagering, and related digital gaming services where permitted by local regulations.

The company serves customers in multiple regulated markets across the United States and Latin America. Its operations have included online sports betting and casino gaming in U.S.

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