Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Richard Todd Schwartz, the Chief Executive Officer of Rush Street Interactive, Inc. (NYSE:RSI), recently sold shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The transactions, conducted under a pre-arranged 10b5-1 trading plan, took place over two days. The sale comes as RSI trades near its 52-week high of $15.68, with the stock showing remarkable strength, up over 310% in the past year. According to InvestingPro analysis, the company appears slightly undervalued at current levels.
On January 13, Schwartz sold 4,419 shares at a weighted average price of $13.7541, with prices ranging between $13.42 and $14.005. The following day, January 14, he sold an additional 6,739 shares at a weighted average price of $14.4701, with individual transaction prices ranging from $14.45 to $14.48. The total value of these transactions amounted to $158,293. For deeper insights into insider transactions and comprehensive analysis, InvestingPro subscribers can access detailed research reports covering over 1,400 US stocks, including RSI.
Following these sales, Schwartz holds 2,385,848 shares of Rush Street Interactive, maintaining a significant stake in the $3.42 billion market cap company. InvestingPro analysis reveals 15+ additional investment insights, including strong revenue growth prospects and solid financial health indicators.
In other recent news, Rush Street Interactive (RSI) announced record-breaking revenue growth for the third quarter of 2024. The company reported a 37% increase in revenue year-over-year, reaching $232 million, while the adjusted EBITDA for the quarter was $23 million, marking a more than fivefold rise from the previous year. Monthly Active Users (MAUs) showed significant growth in both North America (28%) and Latin America (122%). The company also revealed a share buyback program of up to $50 million and a strong cash position with $216 million in unrestricted cash and no debt.
In light of these developments, RSI has revised its 2024 revenue guidance up by 3% and EBITDA guidance by 24%. The full-year revenue guidance for 2024 now stands between $900 million and $920 million, while EBITDA expectations have been increased to between $82 million and $86 million. RSI is also exploring expansion into new markets, notably Latin America and Canada, and is open to potential acquisitions.
Despite the robust growth, RSI faces challenges with low hold rates in North American sports betting and potential regulatory risks with tax increases. However, the company remains optimistic about iGaming legalization momentum in various states and sees strong user retention trends. RSI is preparing for a January launch in Brazil and plans market entries in Peru and possibly Alberta. These are the recent developments within RSI.
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