Wall Street Zen Downgrades Rush Street Interactive (NYSE:RSI) to Buy

Key Points

• Rush Street Interactive's stock rating was downgraded from a "strong-buy" to a "buy" by Wall Street Zen, reflecting a shift in analyst sentiment.
• Despite the downgrade, Rush Street Interactive has a consensus rating of "Moderate Buy" from analysts, with an average price target of $18.33.
• Recently, significant insider selling was reported, with directors offloading approximately 2.65 million shares of stock valued at over $44 million.

Wall Street Zen cut shares of Rush Street Interactive (NYSE:RSI - Free Report) from a strong-buy rating to a buy rating in a research report released on Saturday morning.

A number of other research firms have also recently commented on RSI. Jefferies Financial Group boosted their target price on shares of Rush Street Interactive from $17.00 to $18.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Oppenheimer upped their price target on shares of Rush Street Interactive from $16.00 to $21.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. JPMorgan Chase & Co. assumed coverage on shares of Rush Street Interactive in a report on Monday, June 23rd. They issued a "neutral" rating and a $14.00 price target on the stock. Needham & Company LLC upped their price target on shares of Rush Street Interactive from $17.00 to $21.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Finally, Benchmark upped their price target on shares of Rush Street Interactive from $20.00 to $24.00 and gave the company a "buy" rating in a report on Monday, September 8th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Rush Street Interactive presently has an average rating of "Moderate Buy" and a consensus price target of $18.33.

Rush Street Interactive Stock Up 2.5%

Shares of NYSE RSI traded up $0.52 during trading on Friday, reaching $21.68. 1,332,836 shares of the stock were exchanged, compared to its average volume of 1,427,021. The business's 50-day moving average price is $18.97 and its 200 day moving average price is $14.58. Rush Street Interactive has a twelve month low of $9.54 and a twelve month high of $22.55. The company has a market capitalization of $4.95 billion, a price-to-earnings ratio of 108.40 and a beta of 1.90.

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

Insider Activity

In other Rush Street Interactive news, CEO Richard Todd Schwartz sold 57,167 shares of the business's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $20.87, for a total transaction of $1,193,075.29. Following the completion of the sale, the chief executive officer owned 823,566 shares in the company, valued at $17,187,822.42. The trade was a 6.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Einar Roosileht sold 70,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $21.47, for a total transaction of $1,502,900.00. Following the transaction, the insider owned 876,150 shares of the company's stock, valued at $18,810,940.50. This represents a 7.40% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,958,599 shares of company stock valued at $34,479,317 over the last quarter. 56.94% of the stock is owned by company insiders.

Hedge Funds Weigh In On Rush Street Interactive

Institutional investors have recently modified their holdings of the company. Bank of America Corp DE grew its position in shares of Rush Street Interactive by 28.0% during the fourth quarter. Bank of America Corp DE now owns 563,769 shares of the company's stock worth $7,735,000 after acquiring an additional 123,305 shares during the last quarter. Assenagon Asset Management S.A. grew its position in shares of Rush Street Interactive by 72.6% during the first quarter. Assenagon Asset Management S.A. now owns 542,376 shares of the company's stock worth $5,814,000 after acquiring an additional 228,187 shares during the last quarter. Calamos Advisors LLC grew its position in shares of Rush Street Interactive by 17.9% during the first quarter. Calamos Advisors LLC now owns 540,008 shares of the company's stock worth $5,789,000 after acquiring an additional 82,067 shares during the last quarter. Jump Financial LLC grew its position in shares of Rush Street Interactive by 41.5% during the first quarter. Jump Financial LLC now owns 300,400 shares of the company's stock worth $3,220,000 after acquiring an additional 88,155 shares during the last quarter. Finally, Two Sigma Investments LP bought a new position in shares of Rush Street Interactive during the fourth quarter worth about $783,000. Institutional investors own 24.78% of the company's stock.

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.