Redfin Corporation [NASDAQ: RDFN] loss -4.19% or -2.62 points to close at $59.91 with a heavy trading volume of 1195151 shares. The company report on June 10, 2021 that Redfin Reports Demand For Second Homes is Cooling to Pre-Pandemic Levels.
Though mortgage-rate locks for second homes were up nearly 50% year over year in May, high prices and tighter lending rules make vacation-home buyers think twice.
(NASDAQ: RDFN) —The number of buyers who locked in mortgage rates to purchase a second home nationwide rose 48% year over year in May, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Though that’s a significant increase, it’s the first time in a year the annual growth rate has fallen below 80%. Year-over-year increases are likely exaggerated because demand for second homes was relatively low in May 2020 due to the coronavirus pandemic slowing real estate activity.
It opened the trading session at $62.254, the shares rose to $62.26 and dropped to $58.51, the range by which the price of stock traded the whole day. The daily chart for RDFN points out that the company has recorded 8.81% gains over the past six months. However, it is still -93.13% lower than its most recent low trading price.
If we look at the average trading volume of 1.68M shares, RDFN reached to a volume of 1195151 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Redfin Corporation [RDFN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RDFN shares is $68.73 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RDFN stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Stephens have made an estimate for Redfin Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on June 03, 2021. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price to Outperform. The new note on the price target was released on May 27, 2021, representing the official price target for Redfin Corporation stock.
The Average True Range (ATR) for Redfin Corporation is set at 3.28, with the Price to Sales ratio for RDFN stock in the period of the last 12 months amounting to 6.65. The Price to Book ratio for the last quarter was 18.05, with the Price to Cash per share for the same quarter was set at 12.93.
Trading performance analysis for RDFN stock
Redfin Corporation [RDFN] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.94. With this latest performance, RDFN shares gained by 10.43% in over the last four-week period, additionally plugging by 8.81% over the last 6 months – not to mention a rise of 76.31% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RDFN stock in for the last two-week period is set at 52.42, with the RSI for the last a single of trading hit 55.31, and the three-weeks RSI is set at 49.92 for Redfin Corporation [RDFN]. The present Moving Average for the last 50 days of trading for this stock 61.25, while it was recorded at 60.40 for the last single week of trading, and 61.59 for the last 200 days.
Redfin Corporation [RDFN]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Redfin Corporation [RDFN] shares currently have an operating margin of +0.98 and a Gross Margin at +26.19. Redfin Corporation’s Net Margin is presently recorded at -2.09.
Return on Total Capital for RDFN is now 0.95, given the latest momentum, and Return on Invested Capital for the company is -2.21. Return on Equity for this stock declined to -3.85, with Return on Assets sitting at -1.89. When it comes to the capital structure of this company, Redfin Corporation [RDFN] has a Total Debt to Total Equity ratio set at 100.74. Additionally, RDFN Total Debt to Total Capital is recorded at 50.18, with Total Debt to Total Assets ending up at 46.68. Long-Term Debt to Equity for the company is recorded at 91.03, with the Long-Term Debt to Total Capital now at 42.48.
Reflecting on the efficiency of the workforce at the company, Redfin Corporation [RDFN] managed to generate an average of -$4,427 per employee.Redfin Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 6.80 and a Current Ratio set at 7.20.
Redfin Corporation [RDFN]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Redfin Corporation posted -0.08/share EPS, while the average EPS was predicted by analysts to be reported at -0.23/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 65.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RDFN.
An analysis of insider ownership at Redfin Corporation [RDFN]
There are presently around $5,552 million, or 90.30% of RDFN stock, in the hands of institutional investors. The top three institutional holders of RDFN stocks are: VANGUARD GROUP INC with ownership of 14,923,331, which is approximately 6.868% of the company’s market cap and around 2.50% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 9,900,919 shares of the stock with an approximate value of $619.1 million in RDFN stocks shares; and DURABLE CAPITAL PARTNERS LP, currently with $536.99 million in RDFN stock with ownership of nearly -4.403% of the company’s market capitalization.
Positions in Redfin Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 152 institutional holders increased their position in Redfin Corporation [NASDAQ:RDFN] by around 12,692,378 shares. Additionally, 162 investors decreased positions by around 11,689,836 shares, while 50 investors held positions by with 64,400,219 shares. The mentioned changes placed institutional holdings at 88,782,433 shares, according to the latest SEC report filing. RDFN stock had 61 new institutional investments in for a total of 5,794,203 shares, while 39 institutional investors sold positions of 3,950,361 shares during the same period.