Riskified (NYSE:RSKD) Sees Strong Trading Volume – Still a Buy?

Riskified Ltd. (NYSE:RSKD) saw unusually-strong trading volume on Monday . Approximately 1,677,771 shares were traded during mid-day trading, an increase of 136% from the previous session’s volume of 711,765 shares.The stock last traded at $4.7980 and had previously closed at $4.61.

Analyst Ratings Changes

A number of equities research analysts recently commented on RSKD shares. Wall Street Zen upgraded Riskified from a “hold” rating to a “buy” rating in a research report on Sunday, March 15th. Truist Financial dropped their target price on Riskified from $8.00 to $7.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $5.96.

Riskified Price Performance

The stock’s fifty day moving average is $4.34 and its 200-day moving average is $4.58. The stock has a market capitalization of $723.42 million, a PE ratio of -44.39 and a beta of 1.39.

Riskified (NYSE:RSKD) last announced its quarterly earnings results on Thursday, May 14th. The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.04 by $0.01. Riskified had a negative net margin of 5.17% and a negative return on equity of 3.91%. The firm had revenue of $88.27 million for the quarter, compared to the consensus estimate of $87.72 million.

Insider Activity

In other news, CTO Assaf Feldman sold 32,590 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $4.68, for a total transaction of $152,521.20. Following the transaction, the chief technology officer owned 2,163,125 shares in the company, valued at $10,123,425. This trade represents a 1.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 17.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Raymond James Financial Inc. purchased a new position in Riskified in the 2nd quarter valued at $36,000. Man Group plc purchased a new position in Riskified in the 4th quarter valued at $50,000. Virtu Financial LLC purchased a new position in Riskified in the 3rd quarter valued at $51,000. Invesco Ltd. purchased a new position in Riskified in the 1st quarter valued at $51,000. Finally, T3 Companies LLC acquired a new stake in shares of Riskified in the 4th quarter worth $54,000. Hedge funds and other institutional investors own 58.98% of the company’s stock.

Riskified Company Profile

Riskified is a technology company specializing in e-commerce fraud prevention and revenue optimization for online merchants. Its platform combines machine learning, behavioral analytics and proprietary risk models to assess the legitimacy of transactions in real time. By offering a chargeback guarantee, Riskified assumes the financial liability for approved orders that later turn out to be fraudulent, allowing retailers to focus on growth rather than dispute management.

The company’s core product suite addresses various aspects of the online shopping lifecycle, including order approval, account takeover protection and policy compliance.