Riskified (NYSE:RSKD) Shares Gap Down - What's Next?

Key Points

• Riskified shares opened sharply lower, falling from a previous close of $6.45 to $6.00 before recovering somewhat to around $6.37.
• Analyst sentiment remains mixed: recent price targets range from $5.50 to $7.50, while the consensus rating is “Hold” with an average target of $6.43.
• The company met quarterly EPS expectations at $0.02 and exceeded revenue estimates with $98.69 million, but insiders sold more than 4.27 million shares worth $21.4 million over the last quarter.

Riskified Ltd. (NYSE:RSKD - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $6.45, but opened at $6.00. Riskified shares last traded at $6.3650, with a volume of 806,012 shares traded.

Analyst Upgrades and Downgrades

RSKD has been the subject of a number of recent analyst reports. UBS Group boosted their target price on shares of Riskified from $5.00 to $6.75 and gave the company a "neutral" rating in a research note on Thursday. DA Davidson lifted their price target on shares of Riskified from $6.00 to $7.50 and gave the company a "buy" rating in a research note on Thursday. Keefe, Bruyette & Woods raised their price objective on Riskified from $5.50 to $6.25 and gave the stock a "market perform" rating in a report on Thursday. Wall Street Zen raised Riskified from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 30th. Finally, The Goldman Sachs Group upped their target price on Riskified from $4.75 to $5.50 and gave the stock a "sell" rating in a report on Wednesday. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $6.43.

Riskified Trading Up 0.4%

The firm's 50-day moving average price is $5.15 and its two-hundred day moving average price is $4.69. The stock has a market cap of $959.27 million, a PE ratio of -58.96 and a beta of 1.38.

Riskified (NYSE:RSKD - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The company reported $0.02 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.02. The company had revenue of $98.69 million for the quarter, compared to analyst estimates of $89.18 million. Riskified had a negative net margin of 4.23% and a negative return on equity of 3.64%. On average, analysts anticipate that Riskified Ltd. will post -0.01 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Erez Shachar sold 435,900 shares of the business's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $5.02, for a total value of $2,188,218.00. Following the completion of the transaction, the director directly owned 2,193,976 shares of the company's stock, valued at approximately $11,013,759.52. The trade was a 16.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Assaf Feldman sold 230,512 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $5.02, for a total value of $1,157,170.24. Following the sale, the chief technology officer owned 1,932,613 shares of the company's stock, valued at $9,701,717.26. This trade represents a 10.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 4,277,654 shares of company stock worth $21,445,013 over the last quarter. Company insiders own 17.40% of the company's stock.

Institutional Trading of Riskified

Institutional investors have recently modified their holdings of the company. Globeflex Capital L P purchased a new position in Riskified in the fourth quarter worth $736,000. Nano Cap New Millennium Growth Fund L P purchased a new stake in shares of Riskified during the 4th quarter valued at $1,019,000. Sei Investments Co. boosted its position in shares of Riskified by 87.4% in the 1st quarter. Sei Investments Co. now owns 356,173 shares of the company's stock worth $1,396,000 after purchasing an additional 166,099 shares in the last quarter. Modern Wealth Management LLC acquired a new stake in shares of Riskified in the 1st quarter worth $56,000. Finally, State of Wyoming grew its stake in Riskified by 88.9% during the 4th quarter. State of Wyoming now owns 92,590 shares of the company's stock worth $460,000 after buying an additional 43,568 shares during the last quarter. 58.98% of the stock is currently owned by institutional investors.

About Riskified

Riskified is a technology company specializing in e-commerce fraud prevention and revenue optimization for online merchants. Its platform combines machine learning, behavioral analytics and proprietary risk models to assess the legitimacy of transactions in real time. By offering a chargeback guarantee, Riskified assumes the financial liability for approved orders that later turn out to be fraudulent, allowing retailers to focus on growth rather than dispute management.

The company's core product suite addresses various aspects of the online shopping lifecycle, including order approval, account takeover protection and policy compliance.

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