Riskified (NYSE:RSKD) Shares Down 6.3% Following Insider Selling

Riskified Ltd. (NYSE:RSKD) dropped 6.3% during mid-day trading on Friday following insider selling activity. The stock traded as low as $6.46 and last traded at $6.4950. Approximately 327,592 shares were traded during trading, a decline of 67% from the average session volume of 981,808 shares. The stock had previously closed at $6.93.

Specifically, Director Erez Shachar sold 100,000 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $6.47, for a total transaction of $647,000.00. Following the transaction, the director owned 3,456,054 shares in the company, valued at $22,360,669.38. This represents a 2.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Assaf Feldman sold 43,904 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $6.51, for a total value of $285,815.04. Following the transaction, the insider directly owned 1,167,371 shares in the company, valued at $7,599,585.21. The trade was a 3.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, Director Erez Shachar sold 100,000 shares of Riskified stock in a transaction on Monday, August 31st. The stock was sold at an average price of $6.29, for a total value of $629,000.00. Following the completion of the sale, the director owned 1,199,683 shares of the company’s stock, valued at $7,546,006.07. The trade was a 7.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on RSKD. Wall Street Zen raised Riskified from a “buy” rating to a “strong-buy” rating in a research report on Saturday, May 30th. The Goldman Sachs Group increased their price objective on shares of Riskified from $4.75 to $5.50 and gave the stock a “sell” rating in a research note on Wednesday, August 12th. Weiss Ratings restated a “sell (d-)” rating on shares of Riskified in a research report on Friday, August 14th. DA Davidson reaffirmed a “buy” rating and set a $7.50 target price on shares of Riskified in a report on Monday, August 24th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of Riskified from $5.50 to $6.25 and gave the stock a “market perform” rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $6.50.

Riskified Stock Performance

The stock has a market capitalization of $962.23 million, a PE ratio of -59.05 and a beta of 1.38. The stock has a 50-day moving average price of $5.54 and a two-hundred day moving average price of $4.88.

Riskified (NYSE:RSKD) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.02 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.02. Riskified had a negative return on equity of 3.93% and a negative net margin of 4.23%.The company had revenue of $98.69 million during the quarter, compared to the consensus estimate of $89.18 million. As a group, equities analysts predict that Riskified Ltd. will post -0.03 earnings per share for the current year.

Institutional Trading of Riskified

Hedge funds and other institutional investors have recently modified their holdings of the company. Raymond James Financial Inc. bought a new stake in shares of Riskified during the 2nd quarter valued at $36,000. Man Group plc purchased a new stake in Riskified in the 4th quarter worth $50,000. T3 Companies LLC purchased a new stake in Riskified in the 4th quarter worth $54,000. Orion Porfolio Solutions LLC bought a new stake in Riskified during the second quarter valued at about $54,000. Finally, Virtu Financial LLC purchased a new position in shares of Riskified in the third quarter valued at about $51,000. 58.98% of the stock is owned by hedge funds and other institutional investors.

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.