Redfin (NASDAQ:RDFN) Shares Gap Up on Earnings Beat

Redfin Co. (NASDAQ:RDFN) gapped up prior to trading 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 trading hands.

The company reported ($0.57) EPS for the quarter, topping the consensus estimate of ($0.58) by $0.01. The firm had revenue of $225.50 million during the quarter, compared to analysts’ expectations of $217.79 million. Redfin had a negative net margin of 11.95% and a negative return on equity of 1,780.89%. Redfin’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same period in the previous year, the company earned ($0.93) EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on RDFN shares. Gordon Haskett downgraded shares of Redfin from a “hold” rating to an “underperform” rating and set a $5.50 price objective for the company. in a research note on Thursday, February 29th. Wedbush reiterated a “neutral” rating and issued a $8.00 price target on shares of Redfin in a report on Wednesday. DA Davidson upped their price objective on Redfin from $6.75 to $7.25 and gave the stock a “neutral” rating in a report on Wednesday. Needham & Company LLC reaffirmed a “hold” rating on shares of Redfin in a research note on Wednesday. Finally, Royal Bank of Canada decreased their target price on Redfin from $10.00 to $9.00 and set a “sector perform” rating for the company in a research report on Wednesday, February 28th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and one has given a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $8.08.

Insider Buying and Selling at Redfin

In other Redfin news, insider Christian John Taubman sold 7,916 shares of the company’s stock in a transaction on Friday, March 1st. The stock was sold at an average price of $6.90, for a total transaction of $54,620.40. Following the transaction, the insider now owns 52,117 shares of the company’s stock, valued at approximately $359,607.30. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In other news, insider Christian John Taubman sold 7,916 shares of the business’s stock in a transaction on 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 transaction, the insider now owns 52,117 shares of the company’s stock, valued at approximately $359,607.30. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 value of $73,569.78. Following the transaction, the insider now 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 institutional investors and hedge funds have recently modified their holdings of RDFN. DekaBank Deutsche Girozentrale bought a new position in Redfin in the third quarter valued at approximately $27,000. Allspring Global Investments Holdings LLC raised its holdings in shares of Redfin by 205.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 4,608 shares of the company’s stock worth $31,000 after acquiring an additional 3,101 shares during the period. New York State Teachers Retirement System bought a new stake in Redfin in the 1st quarter valued at $66,000. First Trust Direct Indexing L.P. acquired a new position in Redfin in the 1st quarter worth $72,000. Finally, Sherbrooke Park Advisers LLC bought a new position in Redfin during the 3rd quarter worth about $82,000. 61.07% of the stock is currently owned by institutional investors and hedge funds.

Redfin Stock Performance

The stock has a market cap of $844.66 million, a P/E ratio of -5.94 and a beta of 2.68. The stock has a fifty day simple moving average of $6.12 and a 200-day simple moving average of $7.15. The company has a debt-to-equity ratio of 295.91, a quick ratio of 1.66 and a current ratio of 1.66.

Redfin Company Profile

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.