Rush Street Interactive (NYSE:RSI) Trading Down 5.1% - Should You Sell?

Key Points

• Rush Street Interactive shares fell 5.1% to about $22.12, with trading volume 75% below the average session volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $35.22, implying substantial upside from the trading price.
• The company reported quarterly revenue of $393.78 million, up 46.3% year over year and above estimates, while insiders sold $17.4 million worth of shares last quarter under pre-arranged trading plans.

Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report)'s stock price fell 5.1% during trading on Monday . The stock traded as low as $22.28 and last traded at $22.1150. 572,951 shares changed hands during trading, a decline of 75% from the average session volume of 2,332,907 shares. The stock had previously closed at $23.30.

Wall Street Analyst Weigh In

Several research analysts recently commented on RSI shares. Wells Fargo & Company raised their price target on shares of Rush Street Interactive from $35.00 to $36.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. Benchmark upped their price target on shares of Rush Street Interactive from $30.00 to $35.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. Susquehanna raised their price objective on Rush Street Interactive from $30.00 to $36.00 and gave the company a "positive" rating in a research report on Wednesday, July 29th. JPMorgan Chase & Co. boosted their price objective on Rush Street Interactive from $26.00 to $30.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 15th. Finally, Citizens Jmp upped their target price on Rush Street Interactive from $33.00 to $34.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Rush Street Interactive currently has an average rating of "Moderate Buy" and a consensus price target of $35.22.

Rush Street Interactive Price Performance

The business has a fifty day moving average of $27.62 and a 200 day moving average of $26.31. The stock has a market cap of $5.18 billion, a PE ratio of 77.13 and a beta of 1.51.

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

Insider Activity at Rush Street Interactive

In other news, CFO Kyle Sauers sold 23,000 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $26.56, for a total transaction of $610,880.00. Following the completion of the transaction, the chief financial officer directly owned 606,526 shares of the company's stock, valued at approximately $16,109,330.56. This represents a 3.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 the firm's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $25.69, for a total value of $2,854,415.90. Following the completion of the sale, the chief executive officer directly owned 421,258 shares in the company, valued at approximately $10,822,118.02. This trade represents a 20.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 614,000 shares of company stock valued at $17,394,492 in the last quarter. Insiders own 52.89% of the company's stock.

Hedge Funds Weigh In On Rush Street Interactive

Hedge funds and other institutional investors have recently modified their holdings of the company. Tidal Investments LLC acquired a new stake in shares of Rush Street Interactive in the 2nd quarter worth about $1,323,000. Integrated Wealth Concepts LLC acquired a new position in Rush Street Interactive during the 2nd quarter valued at about $70,000. Allworth Financial LP grew its position in Rush Street Interactive by 38.1% in the 2nd quarter. Allworth Financial LP now owns 1,917 shares of the company's stock worth $57,000 after purchasing an additional 529 shares during the last quarter. Arizona State Retirement System grew its position in Rush Street Interactive by 11.4% in the 2nd quarter. Arizona State Retirement System now owns 30,002 shares of the company's stock worth $892,000 after purchasing an additional 3,081 shares during the last quarter. Finally, Corient Private Wealth LP increased its stake in shares of Rush Street Interactive by 14.7% in the second quarter. Corient Private Wealth LP now owns 75,364 shares of the company's stock valued at $2,241,000 after purchasing an additional 9,687 shares during the period. 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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