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)'s share price gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. 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). The company had revenue of $81.06 million during the quarter, compared to analysts' expectations of $80.17 million. Riskified had a negative net margin of 11.15% and a negative return on equity of 7.42%. The business's revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.04 earnings per share.

Analysts Set New Price Targets

Several research firms have recently issued reports on RSKD. UBS Group lifted their price target on Riskified from $5.50 to $5.75 and gave the stock a "neutral" rating in a research note on Thursday, May 15th. Truist Financial upped their target price on shares of Riskified from $7.00 to $8.00 and gave the company a "buy" rating in a report on Thursday, May 15th. Keefe, Bruyette & Woods upped their target price on shares of Riskified from $5.25 to $5.50 and gave the company a "market perform" rating in a report on Thursday, May 15th. Finally, DA Davidson upped their price objective on shares of Riskified from $6.00 to $6.50 and gave the company a "buy" rating in a research note on Thursday, May 15th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $6.18.

Institutional Trading of Riskified

A number of large investors have recently bought and sold shares of RSKD. Raymond James Financial Inc. bought a new position in Riskified during the second quarter worth about $36,000. Lazard Asset Management LLC bought a new position in shares of Riskified during the 4th quarter valued at about $38,000. Group One Trading LLC lifted its holdings in shares of Riskified by 4,503.5% during the 4th quarter. Group One Trading LLC now owns 8,719 shares of the company's stock valued at $41,000 after purchasing an additional 8,917 shares in the last quarter. Orion Porfolio Solutions LLC bought a new position in shares of Riskified during the 2nd quarter valued at about $54,000. Finally, Invesco Ltd. bought a new stake in Riskified in the 1st quarter valued at approximately $51,000. 58.98% of the stock is currently owned by institutional investors.

Riskified Trading Down 12.4%

The stock has a market cap of $743.02 million, a P/E ratio of -21.54 and a beta of 1.37. The company has a 50 day simple moving average of $5.12 and a 200 day simple moving average of $4.97.

Riskified Company Profile

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.

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