Riskified (NYSE:RSKD) Sees Unusually-High Trading Volume – Still a Buy?

Riskified Ltd. (NYSE:RSKD) saw strong trading volume on Wednesday . 179,707 shares changed hands during mid-day trading, a decline of 41% from the previous session’s volume of 305,455 shares.The stock last traded at $4.96 and had previously closed at $4.82.

Analyst Ratings Changes

RSKD has been the subject of several recent analyst reports. Keefe, Bruyette & Woods lowered their price objective on shares of Riskified from $5.50 to $5.25 and set a “market perform” rating for the company in a research note on Thursday, November 14th. UBS Group dropped their price objective on Riskified from $4.75 to $4.50 and set a “neutral” rating for the company in a report on Thursday, November 14th. Piper Sandler reduced their target price on Riskified from $7.00 to $6.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 8th. The Goldman Sachs Group decreased their target price on Riskified from $4.50 to $4.00 and set a “sell” rating for the company in a report on Monday, December 2nd. Finally, DA Davidson upgraded shares of Riskified to a “hold” rating in a report on Thursday, November 14th. One analyst has rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $5.72.

Riskified Price Performance

The firm has a market cap of $883.33 million, a PE ratio of -24.77 and a beta of 1.37. The firm has a 50-day simple moving average of $4.75 and a 200 day simple moving average of $5.04.

Riskified (NYSE:RSKD) last issued its quarterly earnings results on Wednesday, November 13th. The company reported $0.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.01. The company had revenue of $78.80 million during the quarter, compared to analysts’ expectations of $75.01 million. Riskified had a negative net margin of 10.72% and a negative return on equity of 6.00%. Riskified’s revenue was up 9.6% on a year-over-year basis. During the same period last year, the company posted ($0.12) EPS. Sell-side analysts forecast that Riskified Ltd. will post -0.15 earnings per share for the current fiscal year.

Riskified announced that its board has authorized a stock repurchase program on Wednesday, November 13th that authorizes the company to repurchase $75.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Algert Global LLC grew its stake in shares of Riskified by 7.1% in the second quarter. Algert Global LLC now owns 43,324 shares of the company’s stock worth $277,000 after acquiring an additional 2,854 shares during the last quarter. Tidal Investments LLC grew its position in Riskified by 4.8% during the 3rd quarter. Tidal Investments LLC now owns 100,525 shares of the company’s stock valued at $475,000 after purchasing an additional 4,616 shares during the last quarter. State Street Corp increased its stake in Riskified by 0.9% during the 3rd quarter. State Street Corp now owns 745,593 shares of the company’s stock valued at $3,527,000 after purchasing an additional 6,927 shares in the last quarter. Susquehanna Fundamental Investments LLC increased its stake in Riskified by 18.2% during the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 75,058 shares of the company’s stock valued at $480,000 after purchasing an additional 11,574 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in Riskified by 1.8% in the third quarter. JPMorgan Chase & Co. now owns 875,723 shares of the company’s stock worth $4,142,000 after buying an additional 15,250 shares during the last quarter. Institutional investors own 58.98% of the company’s stock.

Riskified Company Profile

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts.