Rush Street Interactive (NYSE:RSI) Stock Falls 6.5% After Analyst Downgrade

Shares of Rush Street Interactive, Inc. (NYSE:RSI) traded down 6.5% during mid-day trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $36.00 to $26.00. Wells Fargo & Company currently has an overweight rating on the stock. Rush Street Interactive traded as low as $13.57 and last traded at $14.1450. Approximately 2,545,830 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 2,521,769 shares. The stock had previously closed at $15.13.

Several other equities analysts have also recently issued reports on RSI. Benchmark boosted their price objective on Rush Street Interactive from $30.00 to $35.00 and gave the company a “buy” rating in a report on Thursday, July 23rd. Wall Street Zen cut Rush Street Interactive from a “buy” rating to a “hold” rating in a research report on Saturday, October 17th. New Street Research set a $35.00 price target on Rush Street Interactive in a report on Thursday, July 23rd. Stifel Nicolaus lowered their price objective on Rush Street Interactive from $34.00 to $30.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Susquehanna dropped their price objective on shares of Rush Street Interactive from $37.00 to $27.00 and set a “positive” rating on the stock in a research note on Friday, October 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $28.67.

Insider Transactions at Rush Street Interactive

In related news, CFO Kyle Sauers sold 23,000 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $26.56, for a total value of $610,880.00. Following the completion of the sale, the chief financial officer owned 606,526 shares of the company’s stock, valued at approximately $16,109,330.56. The trade was a 3.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Mattias Stetz sold 20,000 shares of the business’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $25.68, for a total transaction of $513,600.00. Following the completion of the sale, the chief operating officer directly owned 157,874 shares of the company’s stock, valued at approximately $4,054,204.32. The trade was a 11.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 603,998 shares of company stock valued at $14,814,268 in the last three months. 52.89% of the stock is currently owned by company insiders.

Key Rush Street Interactive News

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

• Positive Sentiment: RSI reported third-quarter earnings of $0.15 per share, exceeding the $0.13 consensus estimate and improving from $0.09 a year earlier. Net income rose 93% to $28.7 million, while adjusted EBITDA increased 73% to $62.2 million. Rush Street Interactive Announces Third Quarter 2026 Results and Reiterates Full Year Guidance
• Positive Sentiment: Quarterly revenue climbed 39% year over year to $385.9 million, and the company reported record North American monthly active users. Online casino operations generated approximately 75% of total revenue, highlighting RSI’s higher-margin casino exposure. Rush Street Interactive: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Needham maintained a “buy” rating and Oppenheimer retained an “outperform” rating. Each firm set a $25 target, implying substantial potential upside from recent levels despite cutting its target from $36. Oppenheimer recommendations
• Neutral Sentiment: RSI reiterated its 2026 revenue outlook of $1.56 billion to $1.60 billion and maintained its full-year adjusted EBITDA guidance, preserving management’s broader forecast.
• Negative Sentiment: Revenue of $385.9 million fell short of the approximately $388.1 million analyst consensus. Management also said October trends point toward the low end of its annual revenue range, raising concerns about near-term growth momentum. Rush Street Interactive reiterates 2026 revenue outlook
• Negative Sentiment: The cuts in analyst price targets indicate that expectations have been reset after the earnings report, even though both analysts continue to recommend buying the stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of RSI. BlackRock Inc. acquired a new position in shares of Rush Street Interactive during the second quarter valued at approximately $448,435,000. Arrowstreet Capital Limited Partnership increased its position in shares of Rush Street Interactive by 84.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,764,173 shares of the company’s stock worth $60,121,000 after purchasing an additional 1,267,622 shares in the last quarter. Renaissance Technologies LLC increased its position in shares of Rush Street Interactive by 15.9% during the first quarter. Renaissance Technologies LLC now owns 2,285,000 shares of the company’s stock worth $49,699,000 after purchasing an additional 312,700 shares in the last quarter. William Blair Investment Management LLC acquired a new position in Rush Street Interactive in the 2nd quarter valued at $48,647,000. Finally, Bank of America Corp DE acquired a new position in Rush Street Interactive in the 2nd quarter valued at $34,015,000. Institutional investors and hedge funds own 24.78% of the company’s stock.

Rush Street Interactive Stock Performance

The company has a 50 day moving average of $22.03 and a 200 day moving average of $23.80. The stock has a market capitalization of $3.28 billion, a price-to-earnings ratio of 49.12 and a beta of 1.71.

Rush Street Interactive (NYSE:RSI) last released its earnings results on Wednesday, October 28th. The company reported $0.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.13 by $0.02. The business had revenue of $385.85 million during the quarter, compared to analyst estimates of $388.05 million. Rush Street Interactive had a net margin of 2.33% and a return on equity of 18.88%. The company’s revenue for the quarter was up 38.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.09 earnings per share. On average, equities analysts predict that Rush Street Interactive, Inc. will post 0.49 EPS for the current fiscal year.

Rush Street Interactive Company Profile

Rush Street Interactive, Inc is an online gaming and sports betting company that operates regulated internet casino and sportsbook platforms. Its primary consumer brands include BetRivers, PlaySugarHouse and RushBet, offering online casino games, sports wagering and related digital gaming products through websites and mobile applications.

The company serves customers in regulated markets across the United States and Latin America, with operations also extending to select international jurisdictions.