Redfin (NASDAQ:RDFN) Shares Gap Up on Earnings Beat

Redfin Co. (NASDAQ:RDFN) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $6.37, but opened at $7.00. Redfin shares last traded at $6.44, with a volume of 2,677,321 shares changing hands.

The company reported ($0.57) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.58) by $0.01. The company had revenue of $225.50 million for the quarter, compared to analysts’ expectations of $217.79 million. Redfin had a negative net margin of 11.95% and a negative return on equity of 1,780.89%. The business’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same period last year, the firm posted ($0.93) earnings per share.

Analyst Ratings Changes

A number of equities research analysts recently commented on RDFN shares. Gordon Haskett lowered shares of Redfin from a “hold” rating to an “underperform” rating and set a $5.50 price objective on the stock. in a report on Thursday, February 29th. Citigroup lowered their price target on shares of Redfin from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Wednesday. Wedbush reiterated a “neutral” rating and issued a $8.00 price target on shares of Redfin in a research note on Wednesday. Stephens upgraded shares of Redfin from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $8.00 to $9.00 in a research note on Wednesday. Finally, Royal Bank of Canada lowered their price target on shares of Redfin from $10.00 to $9.00 and set a “sector perform” rating on the stock in a research note on Wednesday, February 28th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $8.03.

Insider Buying and Selling at Redfin

In other news, insider Anna Stevens sold 10,851 shares of the company’s stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $6.78, for a total transaction of $73,569.78. Following the completion of the sale, the insider now owns 15,477 shares of the company’s stock, valued at approximately $104,934.06. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, insider Christian John Taubman sold 7,916 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $6.90, for a total transaction of $54,620.40. Following the completion of the sale, the insider now owns 52,117 shares of the company’s stock, valued at approximately $359,607.30. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Anna Stevens sold 10,851 shares of the company’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $6.78, for a total transaction of $73,569.78. Following the transaction, the insider now owns 15,477 shares of the company’s stock, valued at $104,934.06. The disclosure for this sale can be found here. Insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Redfin

Institutional investors have recently added to or reduced their stakes in the stock. DekaBank Deutsche Girozentrale acquired a new position in Redfin in the 3rd quarter valued at approximately $27,000. Allspring Global Investments Holdings LLC boosted its stake in shares of Redfin by 205.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 4,608 shares of the company’s stock valued at $31,000 after purchasing an additional 3,101 shares during the last quarter. New York State Teachers Retirement System bought a new stake in shares of Redfin in the 1st quarter valued at $66,000. First Trust Direct Indexing L.P. bought a new stake in shares of Redfin in the 1st quarter valued at $72,000. Finally, Sherbrooke Park Advisers LLC bought a new stake in shares of Redfin in the 3rd quarter valued at $82,000. 61.07% of the stock is currently owned by institutional investors and hedge funds.

Redfin Stock Performance

The stock’s 50 day moving average price is $6.12 and its 200 day moving average price is $7.15. The company has a debt-to-equity ratio of 295.91, a quick ratio of 1.66 and a current ratio of 1.66. The company has a market capitalization of $746.69 million, a P/E ratio of -5.34 and a beta of 2.68.

Redfin Company Profile

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; and originates and sells mortgages.