Redfin (NASDAQ:RDFN) Shares Gap Down on Disappointing Earnings

Redfin Co. (NASDAQ:RDFN – Get Rating) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $9.08, but opened at $8.29. Redfin shares last traded at $9.25, with a volume of 31,770 shares.

The company reported ($0.73) earnings per share for the quarter, missing the consensus estimate of ($0.62) by ($0.11). The firm had revenue of $606.92 million for the quarter, compared to analyst estimates of $611.37 million. Redfin had a negative return on equity of 53.87% and a negative net margin of 7.31%. The firm’s quarterly revenue was up 28.8% on a year-over-year basis. During the same period in the prior year, the company earned ($0.29) earnings per share.

Wall Street Analyst Weigh In

RDFN has been the subject of several recent research reports. Wedbush cut Redfin from an “outperform” rating to a “neutral” rating and reduced their price objective for the stock from $14.00 to $9.00 in a research report on Monday, July 11th. Truist Financial reduced their price target on Redfin from $31.00 to $18.00 and set a “buy” rating for the company in a research report on Monday, August 1st. The Goldman Sachs Group reduced their price target on Redfin from $20.00 to $17.50 and set a “neutral” rating for the company in a research report on Tuesday, April 19th. Stifel Nicolaus reduced their price target on Redfin from $11.00 to $10.00 in a research report on Tuesday, June 28th. Finally, Susquehanna reduced their price target on Redfin from $25.00 to $13.00 in a research report on Monday, May 9th. One analyst has rated the stock with a sell rating, twelve have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $22.00.

Insiders Place Their Bets

In related news, Director Bradley E. Singer acquired 50,000 shares of the stock in a transaction on Monday, May 9th. The shares were purchased at an average price of $11.20 per share, for a total transaction of $560,000.00. Following the purchase, the director now directly owns 50,000 shares in the company, valued at $560,000. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other Redfin news, Director Bradley E. Singer bought 50,000 shares of Redfin stock in a transaction on Monday, May 9th. The shares were purchased at an average price of $11.20 per share, with a total value of $560,000.00. Following the acquisition, the director now owns 50,000 shares in the company, valued at approximately $560,000. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Glenn Kelman sold 15,000 shares of the firm’s stock in a transaction on Monday, May 16th. The shares were sold at an average price of $10.68, for a total value of $160,200.00. Following the completion of the sale, the chief executive officer now directly owns 1,256,502 shares in the company, valued at approximately $13,419,441.36. The disclosure for this sale can be found here. Insiders have sold a total of 34,500 shares of company stock worth $354,975 in the last 90 days. Company insiders own 5.20% of the company’s stock.

Institutional Investors Weigh In On Redfin

A number of large investors have recently modified their holdings of the business. Swiss National Bank boosted its holdings in shares of Redfin by 0.4% during the 4th quarter. Swiss National Bank now owns 207,800 shares of the company’s stock valued at $7,977,000 after acquiring an additional 900 shares in the last quarter. ProShare Advisors LLC boosted its holdings in shares of Redfin by 38.7% during the 4th quarter. ProShare Advisors LLC now owns 39,968 shares of the company’s stock valued at $1,534,000 after acquiring an additional 11,153 shares in the last quarter. Lockheed Martin Investment Management Co. acquired a new stake in shares of Redfin during the 4th quarter valued at $298,000. First Trust Advisors LP lifted its holdings in Redfin by 20.3% during the 4th quarter. First Trust Advisors LP now owns 15,252 shares of the company’s stock worth $586,000 after buying an additional 2,575 shares during the period. Finally, First Republic Investment Management Inc. acquired a new position in Redfin during the 4th quarter worth about $332,000. Institutional investors and hedge funds own 97.94% of the company’s stock.

Redfin Price Performance

The stock has a market capitalization of $1.11 billion, a price-to-earnings ratio of -6.41 and a beta of 1.92. The company has a fifty day simple moving average of $9.16 and a 200 day simple moving average of $15.57. The company has a debt-to-equity ratio of 5.26, a quick ratio of 2.84 and a current ratio of 3.66.

Redfin Company Profile

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Redfin Corporation operates as a residential real estate brokerage company in the United States and Canada. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home. It also provides title and settlement services; originates and sells mortgages; and buys and sells homes.

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