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

Key Points

• Rush Street Interactive shares fell 14.3%, opening at $28.38 versus the prior close of $30.77 and later trading near $27.64, despite strong quarterly results.
• Second-quarter revenue surged 46% year over year to $393.8 million, while net income reached $29.3 million and adjusted EBITDA rose 61% to $64.6 million. Adjusted EPS of $0.15 matched estimates, but revenue exceeded expectations.
• The company raised its 2026 revenue forecast to approximately $1.56 billion-$1.60 billion, and analysts remain broadly bullish with a “Moderate Buy” consensus and an average price target of $35.22. However, RSI’s elevated valuation and recent insider selling may be weighing on the stock.

Rush Street Interactive, Inc. (NYSE:RSI - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $30.77, but opened at $28.38. Rush Street Interactive shares last traded at $27.64, with a volume of 413,846 shares trading hands.

Key Stories Impacting Rush Street Interactive

Here are the key news stories impacting Rush Street Interactive this week:

• Positive Sentiment: RSI reported record second-quarter revenue of $393.8 million, up 46% year over year, while net income reached $29.3 million and adjusted EBITDA climbed 61% to $64.6 million. North American online-casino monthly active users increased 64%. Rush Street Interactive Announces Second Quarter 2026 Results and Raises Full Year Guidance
• Positive Sentiment: The company raised its full-year 2026 outlook, projecting revenue of approximately $1.56 billion to $1.60 billion, above the roughly $1.5 billion analyst consensus, as it ramps its Alberta launch. Rush Street Interactive Projects 2026 Revenue as It Ramps Alberta Launch
• Positive Sentiment: Wells Fargo raised its price target for RSI from $35 to $36 and reaffirmed an “overweight” rating, indicating confidence in the company’s growth prospects. Benzinga
• Neutral Sentiment: Second-quarter adjusted earnings of $0.15 per share matched estimates, though earnings growth from $0.11 per share a year earlier was less decisive than the revenue and EBITDA performance. RSI Q2 Earnings Match Estimates
• Negative Sentiment: At a price-to-earnings ratio near 90, RSI remains priced for substantial execution. A valuation-focused analysis cited potential downside, which may be contributing to selling pressure despite the upbeat guidance. Earnings Watch: RSI Q2 2026

Wall Street Analysts Forecast Growth

A number of brokerages have commented on RSI. New Street Research set a $35.00 price objective on shares of Rush Street Interactive in a report on Thursday, July 23rd. Weiss Ratings restated a "hold (c+)" rating on shares of Rush Street Interactive in a research note on Monday, July 6th. Jefferies Financial Group reaffirmed a "buy" rating and set a $39.00 target price on shares of Rush Street Interactive in a research report on Thursday. Citigroup reaffirmed a "market outperform" rating on shares of Rush Street Interactive in a research report on Thursday. Finally, Wells Fargo & Company boosted their price target on Rush Street Interactive from $35.00 to $36.00 and gave the stock an "overweight" rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $35.22.

Rush Street Interactive Stock Down 14.3%

The business's 50 day moving average is $29.89 and its 200-day moving average is $24.25. The firm has a market cap of $6.13 billion, a P/E ratio of 85.34 and a beta of 1.56.

Rush Street Interactive (NYSE:RSI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.15 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.15. The firm had revenue of $393.78 million for the quarter, compared to analysts' expectations of $367.75 million. Rush Street Interactive had a net margin of 2.98% and a return on equity of 17.21%. The firm's quarterly revenue was up 46.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.11 earnings per share. As a group, equities analysts predict that Rush Street Interactive, Inc. will post 0.5 earnings per share for the current year.

Insider Transactions at Rush Street Interactive

In other Rush Street Interactive news, Chairman Neil Bluhm sold 1,371,150 shares of the company's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $24.96, for a total transaction of $34,223,904.00. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Richard Todd Schwartz sold 710,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $24.96, for a total value of $17,721,600.00. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 2,887,328 shares of company stock valued at $74,151,223. Insiders own 52.89% of the company's stock.

Hedge Funds Weigh In On Rush Street Interactive

Hedge funds have recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. raised its holdings in shares of Rush Street Interactive by 82.9% during the second quarter. Assenagon Asset Management S.A. now owns 1,139,667 shares of the company's stock worth $33,894,000 after purchasing an additional 516,534 shares during the period. CoreCap Advisors LLC bought a new stake in shares of Rush Street Interactive during the 2nd quarter valued at about $54,000. City Center Advisors LLC bought a new stake in shares of Rush Street Interactive during the 2nd quarter valued at about $414,000. Prospect Capital Advisors LLC grew its position in shares of Rush Street Interactive by 9.1% during the 1st quarter. Prospect Capital Advisors LLC now owns 482,500 shares of the company's stock valued at $10,494,000 after buying an additional 40,050 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in Rush Street Interactive by 81.8% during the first quarter. Bank of America Corp DE now owns 852,653 shares of the company's stock worth $18,545,000 after acquiring an additional 383,745 shares during the period. Institutional investors and hedge funds own 24.78% of the company's stock.

Rush Street Interactive Company Profile

Rush Street Interactive NYSE: RSI is a digital gaming and sports betting company that develops and operates online wagering platforms in regulated markets. As a subsidiary of Rush Street Gaming, the company specializes in delivering interactive casino games, live dealer experiences, and sports betting services through desktop and mobile applications. Its technology infrastructure is designed to support real-time wagering, secure transactions, and responsible gaming tools across multiple jurisdictions.

The company’s flagship brand, BetRivers, offers a range of casino titles—including slots, table games, and virtual sports—alongside a comprehensive sportsbook featuring pre-game and in-play betting markets.

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