Mattias Stetz, the Chief Operating Officer of Rush Street Interactive, Inc. (NYSE:RSI), recently sold 5,000 shares of the company’s Class A common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of approximately $12.00 per share, totaling around $60,000. This transaction was conducted under a 10b5-1 trading plan, established on August 16, 2024. Following this sale, Stetz retains ownership of 575,484 shares in the company.
In other recent news, Rush Street Interactive (RSI) reported record-breaking growth for the third quarter of 2024. The company's revenues surged to $232 million, marking a 37% increase year-over-year, and its adjusted EBITDA jumped to $23 million, a fivefold rise from the previous year. This marks RSI's 15th consecutive period of revenue increase since its public debut.
Following these strong results, RSI has revised its 2024 revenue guidance upwards by 3% and its EBITDA guidance by a significant 24%, now projecting EBITDA to be 110% above initial expectations for the year. The company also announced a share buyback program of up to $50 million and reported a strong cash position with $216 million in unrestricted cash and no debt.
In addition to these financial developments, RSI is exploring expansion into new markets, particularly Latin America and Canada, and is open to potential acquisitions. Despite facing challenges with low hold rates in North American sports betting and potential regulatory risks, RSI remains optimistic about iGaming legalization momentum in various states. These are some of the recent developments surrounding the company.
InvestingPro Insights
As Rush Street Interactive, Inc. (NYSE:RSI) experiences insider selling activity, it's crucial to examine the company's financial health and market performance. According to InvestingPro data, RSI's market capitalization stands at $2.74 billion, reflecting its position in the online gaming and sports betting industry.
The company has shown impressive revenue growth, with a 30.31% increase over the last twelve months as of Q3 2024, reaching $863.77 million. This growth trend is further supported by an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. Additionally, RSI's EBITDA has seen a remarkable 177.59% growth in the same period, signaling improved operational efficiency.
Despite these positive indicators, it's worth noting that RSI is not currently profitable over the last twelve months. However, an InvestingPro Tip suggests that analysts predict the company will be profitable this year, which could be a turning point for investors.
The stock's recent performance has been strong, with a 29.21% price return over the last three months and a substantial 171.94% return year-to-date. This aligns with another InvestingPro Tip highlighting RSI's high return over the last year.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 14 more InvestingPro Tips available for RSI, providing a deeper understanding of the company's financial position and market outlook.
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