Riskified (NYSE:RSKD) Shares Gap Down Following Weak Earnings

Key Points

• Riskified's shares fell 12.4% after weak quarterly earnings, opening at $4.75, down from a previous close of $5.26.
• The company reported an EPS of ($0.07), missing estimates by ($0.09), despite a revenue growth of 3.0% year-over-year to $81.06 million.
• Analysts have mixed views on Riskified, with price targets ranging from $5.50 to $8.00, reflecting a majority "Hold" rating among investment firms.

Riskified Ltd. (NYSE:RSKD - Get Free Report) gapped down prior to trading on Monday following a weaker than expected earnings announcement. The stock had previously closed at $5.26, but opened at $4.75. Riskified shares last traded at $4.52, with a volume of 266,319 shares trading hands.

The company reported ($0.07) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.09). Riskified had a negative return on equity of 8.27% and a negative net margin of 11.70%.The firm had revenue of $81.06 million during the quarter, compared to analysts' expectations of $80.17 million. During the same period in the previous year, the firm posted $0.04 earnings per share. The firm's revenue was up 3.0% on a year-over-year basis. Riskified has set its FY 2025 guidance at EPS.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on RSKD. Keefe, Bruyette & Woods lowered their price objective on shares of Riskified from $5.50 to $5.25 and set a "market perform" rating for the company in a research note on Tuesday. DA Davidson lowered their price objective on shares of Riskified from $6.50 to $6.00 and set a "buy" rating for the company in a research note on Tuesday. UBS Group lowered their price objective on shares of Riskified from $5.75 to $5.00 and set a "neutral" rating for the company in a research note on Tuesday. Piper Sandler lowered their price objective on shares of Riskified from $7.00 to $6.00 and set an "overweight" rating for the company in a research note on Monday, August 18th. Finally, Truist Financial boosted their price objective on shares of Riskified from $7.00 to $8.00 and gave the company a "buy" rating in a research note on Thursday, May 15th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $5.82.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Jennison Associates LLC lifted its stake in shares of Riskified by 3.3% during the second quarter. Jennison Associates LLC now owns 5,886,511 shares of the company's stock worth $29,374,000 after purchasing an additional 189,188 shares in the last quarter. Harvey Partners LLC raised its stake in shares of Riskified by 0.6% in the 2nd quarter. Harvey Partners LLC now owns 2,569,145 shares of the company's stock valued at $12,820,000 after purchasing an additional 16,145 shares in the last quarter. Clearline Capital LP raised its stake in shares of Riskified by 37.3% in the 1st quarter. Clearline Capital LP now owns 2,453,506 shares of the company's stock valued at $11,335,000 after purchasing an additional 666,175 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in shares of Riskified by 17.7% in the second quarter. Allspring Global Investments Holdings LLC now owns 1,104,694 shares of the company's stock valued at $5,512,000 after acquiring an additional 165,947 shares in the last quarter. Finally, Monimus Capital Management LP boosted its holdings in shares of Riskified by 3.0% in the second quarter. Monimus Capital Management LP now owns 979,938 shares of the company's stock valued at $4,890,000 after acquiring an additional 28,633 shares in the last quarter. Institutional investors and hedge funds own 58.98% of the company's stock.

Riskified Price Performance

The firm's fifty day moving average price is $5.07 and its 200-day moving average price is $4.94. The firm has a market capitalization of $735.92 million, a P/E ratio of -19.02 and a beta of 1.37.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts.