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

Redfin Co. (NASDAQ:RDFN) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.58) by $0.01. Redfin had a negative net margin of 11.95% and a negative return on equity of 1,780.89%. The firm had revenue of $225.50 million during the quarter, compared to analyst estimates of $217.79 million. During the same period last year, the firm posted ($0.93) earnings per share. Redfin’s revenue for the quarter was up 5.3% compared to the same quarter last year.

Analyst Ratings Changes

A number of research firms recently weighed in on RDFN. DA Davidson reissued a “neutral” rating and issued a $6.75 target price on shares of Redfin in a report on Friday, March 22nd. Gordon Haskett lowered 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. Stephens raised shares of Redfin from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $8.00 to $9.00 in a research note on Wednesday. Wedbush reaffirmed a “neutral” rating and set a $8.00 price objective on shares of Redfin in a research note on Wednesday. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Redfin in a research note on Wednesday. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $8.03.

Insider Transactions at Redfin

In other news, insider Christian John Taubman sold 7,916 shares of Redfin 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 completion of the sale, the insider now directly owns 52,117 shares in the company, valued at $359,607.30. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In related news, 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 completion of the sale, the insider now directly owns 15,477 shares in the company, valued at $104,934.06. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Christian John Taubman sold 7,916 shares of Redfin 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 of the company’s stock, valued at $359,607.30. The disclosure for this sale can be found here. Corporate insiders own 5.30% of the company’s stock.

Institutional Trading of Redfin

Several institutional investors and hedge funds have recently made changes to their positions in the company. ProShare Advisors LLC raised its holdings in shares of Redfin by 9.8% in the first quarter. ProShare Advisors LLC now owns 19,876 shares of the company’s stock valued at $132,000 after acquiring an additional 1,766 shares in the last quarter. Principal Financial Group Inc. raised its holdings in Redfin by 17.7% in the first quarter. Principal Financial Group Inc. now owns 14,872 shares of the company’s stock worth $99,000 after purchasing an additional 2,241 shares in the last quarter. Jennison Associates LLC raised its holdings in Redfin by 4.4% in the third quarter. Jennison Associates LLC now owns 61,019 shares of the company’s stock worth $430,000 after purchasing an additional 2,580 shares in the last quarter. Swiss National Bank raised its holdings in Redfin by 1.3% in the first quarter. Swiss National Bank now owns 227,500 shares of the company’s stock worth $1,513,000 after purchasing an additional 2,900 shares in the last quarter. Finally, Victory Capital Management Inc. raised its holdings in Redfin by 24.9% in the fourth quarter. Victory Capital Management Inc. now owns 14,856 shares of the company’s stock worth $153,000 after purchasing an additional 2,957 shares in the last quarter. 61.07% of the stock is currently owned by institutional investors.

Redfin Price Performance

The firm has a market capitalization of $746.69 million, a P/E ratio of -5.34 and a beta of 2.68. The company has a debt-to-equity ratio of 295.91, a current ratio of 1.66 and a quick ratio of 1.66. The stock’s fifty day simple moving average is $6.12 and its 200 day simple moving average is $7.15.

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.