Redfin (NASDAQ:RDFN) Shares Gap Up Following Strong Earnings

Redfin Co. (NASDAQ:RDFN) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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) EPS for the quarter, beating the consensus estimate of ($0.58) by $0.01. The company had revenue of $225.50 million for the quarter, compared to analyst estimates of $217.79 million. Redfin had a negative net margin of 11.95% and a negative return on equity of 1,780.89%. The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.93) EPS.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Needham & Company LLC reiterated a “hold” rating on shares of Redfin in a research report on Wednesday. DA Davidson restated a “neutral” rating and set a $6.75 price target on shares of Redfin in a report on Friday, March 22nd. Stephens raised shares of Redfin from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $8.00 to $9.00 in a research note on Wednesday. Royal Bank of Canada decreased their price target on shares of Redfin from $10.00 to $9.00 and set a “sector perform” rating for the company in a research note on Wednesday, February 28th. Finally, Citigroup cut their price target on Redfin from $10.50 to $8.00 and set a “neutral” rating on the stock in a research note on Thursday, February 29th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $8.14.

Insider Activity at Redfin

In other news, insider Christian John Taubman sold 7,916 shares of the firm’s stock in a transaction dated Friday, March 1st. The stock was sold at an average price of $6.90, for a total transaction of $54,620.40. Following the sale, the insider now directly owns 52,117 shares in the company, valued at approximately $359,607.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Redfin news, insider Christian John Taubman sold 7,916 shares of the stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $6.90, for a total value of $54,620.40. Following the completion of the sale, the insider now owns 52,117 shares in the company, valued at approximately $359,607.30. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Anna Stevens sold 10,851 shares of Redfin 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 disclosure for this sale can be found here. Company insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Redfin

Several large investors have recently modified their holdings of RDFN. Raymond James & Associates grew its stake in shares of Redfin by 152.1% in the third quarter. Raymond James & Associates now owns 109,264 shares of the company’s stock valued at $769,000 after buying an additional 65,915 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Redfin by 17.9% in the third quarter. Bank of New York Mellon Corp now owns 544,842 shares of the company’s stock valued at $3,836,000 after purchasing an additional 82,724 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Redfin by 36.4% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 19,326 shares of the company’s stock valued at $136,000 after purchasing an additional 5,157 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in Redfin by 41.1% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 10,442 shares of the company’s stock worth $74,000 after buying an additional 3,041 shares during the period. Finally, Jennison Associates LLC lifted its holdings in Redfin by 4.4% during the 3rd quarter. Jennison Associates LLC now owns 61,019 shares of the company’s stock worth $430,000 after buying an additional 2,580 shares in the last quarter. Institutional investors and hedge funds own 61.07% of the company’s stock.

Redfin Stock Down 1.1 %

The business has a 50-day simple moving average of $6.14 and a 200-day simple moving average of $7.16. 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 cap of $752.66 million, a price-to-earnings ratio of -5.44 and a beta of 2.68.

About Redfin

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.