Rush Street Interactive (NYSE:RSI) Shares Down 5.4% - Here's What Happened

Key Points

• Rush Street Interactive's (RSI) shares fell 5.4% on Tuesday, trading as low as $21.90, marking a significant drop from the previous closing price of $22.40 and a massive decline in trading volume.
• Despite the drop, several analysts have recently upgraded their ratings and price targets for Rush Street Interactive, with average target prices now around $18.33 and multiple firm ratings indicating a general optimism about its performance.
• Insider selling activity was noted, with key executives offloading significant shares, raising concerns about insider sentiment amid a backdrop of fluctuating stock performance.

Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report) traded down 5.4% on Tuesday . The company traded as low as $21.90 and last traded at $21.20. 125,894 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 1,663,861 shares. The stock had previously closed at $22.40.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on RSI. Oppenheimer upped their price objective on Rush Street Interactive from $16.00 to $21.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. Zacks Research raised Rush Street Interactive from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 25th. Jefferies Financial Group lifted their target price on Rush Street Interactive from $17.00 to $18.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. Needham & Company LLC lifted their target price on Rush Street Interactive from $17.00 to $21.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Finally, Benchmark lifted their target price on Rush Street Interactive from $20.00 to $24.00 and gave the stock a "buy" rating in a report on Monday, September 8th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $18.33.

Rush Street Interactive Stock Down 8.4%

The company has a market capitalization of $4.69 billion, a P/E ratio of 102.62 and a beta of 1.90. The company has a 50 day simple moving average of $19.98 and a two-hundred day simple moving average of $15.19.

Rush Street Interactive (NYSE:RSI - Get Free Report) last announced its quarterly earnings results 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. The firm had revenue of $269.22 million during the quarter, compared to analyst estimates of $248.98 million. Rush Street Interactive had a return on equity of 16.53% and a net margin of 2.48%.Rush Street Interactive's quarterly revenue was up 22.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.04 earnings per share. Rush Street Interactive has set its FY 2025 guidance at EPS. As a group, research analysts expect that Rush Street Interactive, Inc. will post 0.04 EPS for the current fiscal year.

Insider Transactions at Rush Street Interactive

In related news, insider Einar Roosileht sold 70,000 shares of the company's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $18.95, for a total value of $1,326,500.00. Following the transaction, the insider directly owned 876,150 shares of the company's stock, valued at $16,603,042.50. This represents a 7.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Richard Todd Schwartz sold 193,905 shares of the company's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $15.39, for a total value of $2,984,197.95. Following the completion of 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 disclosure for this sale can be found here. Insiders sold 1,833,903 shares of company stock valued at $32,662,393 in the last quarter. Insiders own 56.89% of the company's stock.

Institutional Investors Weigh In On Rush Street Interactive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RSI. Two Sigma Advisers LP grew its position in Rush Street Interactive by 545.6% during the 4th quarter. Two Sigma Advisers LP now owns 73,600 shares of the company's stock worth $1,010,000 after purchasing an additional 62,200 shares during the period. Two Sigma Investments LP acquired a new stake in Rush Street Interactive during the 4th quarter worth about $783,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Rush Street Interactive by 171.4% during the 4th 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 acquiring an additional 103,546 shares during the period. Wealth Enhancement Advisory Services LLC acquired a new stake in shares of Rush Street Interactive during the 4th quarter valued at about $200,000. Finally, California State Teachers Retirement System grew its position in shares of Rush Street Interactive by 8.1% during the 4th quarter. California State Teachers Retirement System now owns 73,625 shares of the company's stock valued at $1,010,000 after acquiring an additional 5,510 shares during the period. 24.78% of the stock is owned by institutional investors and hedge funds.

Rush Street Interactive Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.