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

Shares of 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 trading hands.

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

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. Citigroup dropped their target price on shares of Redfin from $10.50 to $8.00 and set a “neutral” rating on the stock in a report on Thursday, February 29th. Needham & Company LLC reissued a “hold” rating on shares of Redfin in a research note on Wednesday. Stephens upgraded Redfin from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $8.00 to $9.00 in a report on Wednesday. Gordon Haskett cut Redfin from a “hold” rating to an “underperform” rating and set a $5.50 price target on the stock. in a research note on Thursday, February 29th. Finally, DA Davidson restated a “neutral” rating and issued a $6.75 price target on shares of Redfin in a research report on Friday, March 22nd. Two analysts have rated the stock with a sell rating, eight have given a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, Redfin currently has a consensus rating of “Hold” and a consensus price target of $8.14.

Insider Activity at Redfin

In other Redfin news, insider Anna Stevens sold 10,851 shares of the firm’s stock in a transaction dated 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 directly owns 15,477 shares in the company, valued at $104,934.06. The transaction was disclosed in a filing with the SEC, which is available through this link. In other news, insider Anna Stevens sold 10,851 shares of the business’s stock in a transaction on Thursday, February 22nd. The shares were sold at an average price of $6.78, for a total value of $73,569.78. Following the completion of the sale, the insider now directly owns 15,477 shares in the company, valued at $104,934.06. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Christian John Taubman sold 7,916 shares of the firm’s stock in a transaction 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 transaction, the insider now owns 52,117 shares in the company, valued at $359,607.30. The disclosure for this sale can be found here. 5.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Redfin

Several hedge funds have recently modified their holdings of the business. Dark Forest Capital Management LP grew its position in Redfin by 342.4% in the 3rd quarter. Dark Forest Capital Management LP now owns 205,033 shares of the company’s stock worth $1,443,000 after purchasing an additional 158,690 shares during the last quarter. Assenagon Asset Management S.A. raised its holdings in Redfin by 89.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 360,212 shares of the company’s stock valued at $3,717,000 after acquiring an additional 169,654 shares in the last quarter. Valeo Financial Advisors LLC acquired a new stake in shares of Redfin during the 4th quarter worth approximately $206,000. Vanguard Group Inc. increased its position in shares of Redfin by 1.2% during the third quarter. Vanguard Group Inc. now owns 15,977,561 shares of the company’s stock valued at $112,482,000 after purchasing an additional 192,162 shares during the period. Finally, Jump Financial LLC raised its stake in shares of Redfin by 19.8% in the third quarter. Jump Financial LLC now owns 372,548 shares of the company’s stock valued at $2,623,000 after purchasing an additional 61,559 shares in the last quarter. 61.07% of the stock is owned by institutional investors.

Redfin Stock Performance

The stock has a market capitalization of $752.66 million, a P/E ratio of -5.44 and a beta of 2.68. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 295.91. The firm has a 50-day moving average of $6.14 and a 200 day moving average of $7.16.

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.