Rush Street Interactive (NYSE:RSI) Shares Gap Up - Here's Why

Key Points

• Rush Street Interactive shares gapped higher, opening at $22.52 versus a prior close of $21.57 and last trading at $22.8250.
• Analyst sentiment is broadly positive: RSI has a “Moderate Buy” consensus rating and a $35.10 average price target, with several firms recently raising targets to $35–$36.
• The company reported quarterly revenue of $393.78 million, beating estimates of $367.75 million, while revenue grew 46.3% year over year; however, company insiders have sold 614,000 shares worth about $17.4 million over the past three months.

Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $21.57, but opened at $22.52. Rush Street Interactive shares last traded at $22.8250, with a volume of 199,038 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on RSI shares. Stifel Nicolaus assumed coverage on shares of Rush Street Interactive in a research note on Monday. They issued a "buy" rating and a $34.00 price target on the stock. Benchmark boosted their price target on Rush Street Interactive from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Oppenheimer raised their price objective on Rush Street Interactive from $30.00 to $36.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. Susquehanna lifted their price objective on Rush Street Interactive from $30.00 to $36.00 and gave the company a "positive" rating in a report on Wednesday, July 29th. Finally, New Street Research set a $35.00 target price on Rush Street Interactive in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Rush Street Interactive currently has an average rating of "Moderate Buy" and a consensus target price of $35.10.

Rush Street Interactive Stock Performance

The business's fifty day moving average is $27.37 and its 200-day moving average is $26.32. The firm has a market cap of $5.19 billion, a P/E ratio of 77.15 and a beta of 1.51.

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

Insider Activity

In other news, COO Mattias Stetz sold 20,000 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $25.68, for a total transaction of $513,600.00. Following the completion of the sale, the chief operating officer directly owned 157,874 shares in the company, valued at $4,054,204.32. This represents a 11.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Richard Schwartz sold 111,110 shares of Rush Street Interactive stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $25.69, for a total transaction of $2,854,415.90. Following the transaction, the chief executive officer directly owned 421,258 shares of the company's stock, valued at $10,822,118.02. This represents a 20.87% decrease in their position. 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. In the last three months, insiders have sold 614,000 shares of company stock valued at $17,394,492. 52.89% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rush Street Interactive

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Rush Street Interactive during the 2nd quarter worth approximately $448,435,000. Arrowstreet Capital Limited Partnership increased its stake in shares of Rush Street Interactive by 84.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,764,173 shares of the company's stock valued at $60,121,000 after acquiring an additional 1,267,622 shares in the last quarter. William Blair Investment Management LLC lifted its position in shares of Rush Street Interactive by 17.3% during the 4th quarter. William Blair Investment Management LLC now owns 2,557,778 shares of the company's stock valued at $49,698,000 after acquiring an additional 378,002 shares during the period. Renaissance Technologies LLC lifted its position in shares of Rush Street Interactive by 15.9% during the 1st quarter. Renaissance Technologies LLC now owns 2,285,000 shares of the company's stock valued at $49,699,000 after acquiring an additional 312,700 shares during the period. Finally, Bank of America Corp DE bought a new position in Rush Street Interactive during the second quarter worth $34,015,000. Institutional investors and hedge funds own 24.78% of the company's stock.

Rush Street Interactive Company Profile

Rush Street Interactive, Inc NYSE: RSI is an online gaming and sports betting company that operates digital casino, sportsbook and related gaming platforms. Its consumer-facing brands include BetRivers and PlaySugarHouse, which offer mobile and online wagering products such as sports betting, internet casino games and, in certain markets, online poker.

The company operates primarily in regulated markets across the United States and Canada, as well as select Latin American jurisdictions.

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