Rush Street Interactive (NYSE:RSI) Downgraded by Zacks Research to Hold

Key Points

• Rush Street Interactive (NYSE:RSI) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a shift in analyst sentiment towards the company.
• Despite the downgrade, several other analysts remain positive, with ratings indicating a consensus of "Moderate Buy" and an average price target of $18.33.
• Insider trades showed significant stock sales, with CEO Richard Todd Schwartz selling over 193,000 shares, indicating potential shifts in investor confidence.

Rush Street Interactive (NYSE:RSI - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities analysts have also weighed in on RSI. Susquehanna restated a "positive" rating and set a $19.00 target price (up from $15.00) on shares of Rush Street Interactive in a report on Wednesday, July 30th. Benchmark raised their target price on Rush Street Interactive from $20.00 to $24.00 and gave the company a "buy" rating in a report on Monday, September 8th. Wall Street Zen lowered Rush Street Interactive from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 13th. Oppenheimer raised their target price on Rush Street Interactive from $16.00 to $21.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. Finally, Needham & Company LLC raised their target price on Rush Street Interactive from $17.00 to $21.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $18.33.

Rush Street Interactive Trading Down 8.4%

RSI opened at $20.52 on Monday. The stock has a market cap of $4.69 billion, a price-to-earnings ratio of 102.60 and a beta of 1.90. Rush Street Interactive has a 1 year low of $9.54 and a 1 year high of $22.65. The stock has a fifty day moving average price of $20.10 and a 200 day moving average price of $15.23.

Rush Street Interactive (NYSE:RSI - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.08 by $0.03. Rush Street Interactive had a return on equity of 16.53% and a net margin of 2.48%.The firm had revenue of $269.22 million during the quarter, compared to analysts' expectations of $248.98 million. During the same quarter last year, the firm earned $0.04 earnings per share. The business's revenue for the quarter was up 22.2% on a year-over-year basis. Rush Street Interactive has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Rush Street Interactive will post 0.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Richard Todd Schwartz sold 193,905 shares of Rush Street Interactive stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $15.39, for a total value of $2,984,197.95. Following the transaction, the chief executive officer directly owned 1,017,471 shares in the company, valued at approximately $15,658,878.69. The trade was a 16.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Judith Gold sold 100,000 shares of Rush Street Interactive stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $19.61, for a total value of $1,961,000.00. Following the completion of the transaction, the director owned 111,629 shares in the company, valued at $2,189,044.69. The trade was a 47.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,833,903 shares of company stock valued at $32,662,393. Company insiders own 56.89% of the company's stock.

Hedge Funds Weigh In On Rush Street Interactive

A number of institutional investors have recently made changes to their positions in RSI. Two Sigma Investments LP bought a new position in shares of Rush Street Interactive in the fourth quarter worth about $783,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Rush Street Interactive by 171.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 163,966 shares of the company's stock valued at $2,250,000 after purchasing an additional 103,546 shares in the last quarter. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Rush Street Interactive in the 4th quarter worth approximately $200,000. California State Teachers Retirement System boosted its holdings in shares of Rush Street Interactive by 8.1% in the 4th quarter. California State Teachers Retirement System now owns 73,625 shares of the company's stock worth $1,010,000 after acquiring an additional 5,510 shares in the last quarter. Finally, GAMMA Investing LLC boosted its holdings in shares of Rush Street Interactive by 1,687.6% in the 1st quarter. GAMMA Investing LLC now owns 6,507 shares of the company's stock worth $70,000 after acquiring an additional 6,143 shares in the last quarter. 24.78% of the stock is currently owned by institutional investors.

About Rush Street Interactive

Rush Street Interactive, Inc operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines.

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