Rush Street Interactive (NYSE:RSI) Hits New 1-Year High on Better-Than-Expected Earnings

Key Points

• Rush Street Interactive reached a new 52-week high with shares trading at $18.55 following a stronger-than-expected earnings report, which included earnings per share of $0.11 compared to the estimated $0.08.
• The company's revenue for the quarter was reported at $269.22 million, significantly exceeding the $248.98 million consensus estimate, marking a 22.2% increase year-over-year.
• Multiple analysts have upgraded Rush Street Interactive's stock ratings, with a consensus rating of "Moderate Buy" and an average target price of $17.56, reflecting increasing confidence in the company's performance.

Shares of Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $18.55 and last traded at $18.36, with a volume of 16969 shares traded. The stock had previously closed at $16.06.

The company reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.03. Rush Street Interactive had a return on equity of 7.35% and a net margin of 0.87%. The company had revenue of $269.22 million for the quarter, compared to the consensus estimate of $248.98 million. During the same quarter in the prior year, the company earned $0.04 earnings per share. Rush Street Interactive's revenue was up 22.2% on a year-over-year basis.

Analyst Upgrades and Downgrades

RSI has been the subject of several analyst reports. Wall Street Zen raised Rush Street Interactive from a "buy" rating to a "strong-buy" rating in a report on Friday, July 18th. Macquarie reiterated an "outperform" rating and issued a $16.00 price objective on shares of Rush Street Interactive in a research report on Friday, May 2nd. Benchmark upped their price target on Rush Street Interactive from $14.00 to $17.00 and gave the stock a "buy" rating in a research note on Tuesday, July 1st. Needham & Company LLC increased their price objective on Rush Street Interactive from $17.00 to $21.00 and gave the company a "buy" rating in a research note on Thursday. Finally, Jefferies Financial Group raised their price target on Rush Street Interactive from $17.00 to $18.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Two equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $17.56.

Insider Transactions at Rush Street Interactive

In other news, Director Masi Niccolo De sold 286,769 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $14.08, for a total transaction of $4,037,707.52. Following the transaction, the director directly owned 921,884 shares in the company, valued at approximately $12,980,126.72. This represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Richard Todd Schwartz sold 193,905 shares of the company's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $15.39, for a total transaction of $2,984,197.95. Following the completion of the sale, the chief executive officer directly owned 1,017,471 shares of the company's stock, valued at $15,658,878.69. The trade was a 16.01% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,048,576 shares of company stock worth $28,953,519. Company insiders own 56.94% of the company's stock.

Institutional Trading of Rush Street Interactive

Hedge funds and other institutional investors have recently bought and sold shares of the business. Pacer Advisors Inc. grew its holdings in shares of Rush Street Interactive by 94.7% during the 1st quarter. Pacer Advisors Inc. now owns 2,533 shares of the company's stock valued at $27,000 after purchasing an additional 1,232 shares during the last quarter. Summit Securities Group LLC acquired a new position in Rush Street Interactive during the first quarter worth $33,000. Heck Capital Advisors LLC bought a new stake in shares of Rush Street Interactive in the 4th quarter worth $34,000. Farther Finance Advisors LLC bought a new position in Rush Street Interactive during the second quarter valued at about $42,000. Finally, GAMMA Investing LLC grew its position in Rush Street Interactive by 1,687.6% during the first quarter. GAMMA Investing LLC now owns 6,507 shares of the company's stock valued at $70,000 after buying an additional 6,143 shares during the period. Institutional investors and hedge funds own 24.78% of the company's stock.

Rush Street Interactive Stock Up 14.2%

The company has a market cap of $4.20 billion, a P/E ratio of 230.98 and a beta of 1.87. The company's 50-day moving average is $14.08 and its two-hundred day moving average is $13.06.

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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