Redfin Corporation (NASDAQ: RDFN): To Buy Or Not To Buy, That Is The Question

UPWK stock
UPWK stock

The Vanguard Group, Inc. has recently announced that it has increased stake in Redfin Corporation (NASDAQ:RDFN) by 13.05%. After grabbing 11.7 million shares, the institutional investor is now in possession of 1.35 million shares of the Real Estate Company. The new investment brought the stake of investor firm to 11.89% having worth around $486.67 million. Moreover, Baillie Gifford & Co. increased its share by 0.19 million to have a control over 8.13 million shares. And BlackRock Fund Advisors raised its holdings to 0.48 million shares by acquiring 5.93 million shares or 6.03% of the stake.

Redfin Corporation (RDFN) concluded trading on 08/27/20 at a closing price of $46.35, with 1.23 million shares of worth about $57.22 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -1.42% during that period and on Thursday the price saw a loss of about -1.30%. Currently the company’s common shares owned by public are about 98.79M shares, out of which, 93.99M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 17 analysts are covering the RDFN stock and their offered price forecasts bring an average price target of $40.85. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $50.00 and could fall to a lowest price of $25.00. Analysts also issued an outlook of 2.70 for the Redfin Corporation stock for next 12 months. The stock’s current price level is -13.46% below of average price target set by the analysts, while a dip to estimated low would result in loss of -85.4 for the stock. However, touching the estimated high of $50.00 would mean a gain of 7.3% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 160 times over the past 12 months. They bought 596,056 shares in 67 of the transactions. In 93 selling transactions, insiders dumped 794,384 shares.

Hartford Mid Cap Fund, Vanguard Real Estate Index Fund, and Vanguard US Growth Fund are the top 3 mutual funds which are holding stakes in Redfin Corporation Hartford Mid Cap Fund is currently holding 4.5 million shares of worth totaling $187.19 million. The company recently came selling -0.46 million shares which brought its stake up to 4.57% of the company’s outstanding shares. Vanguard Real Estate Index Fund sold 28593.0 shares, after which its hold over company’s outstanding shares shrunk to 3.29%, leaving 3.24 million shares with the mutual fund that have a worth of about $134.88 million. Vanguard US Growth Fund, after buying 2.8 million shares, have now control over 2.84% of the stake in the company. It holds 0.0 shares of worth $116.39 million.

Redfin Corporation (NASDAQ: RDFN) started trading at $46.90, below -$0.06 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $46.35, or with a loss of -1.30%. Stock saw a price change of -1.42% in past 5 days and over the past one month there was a price change of 11.71%. Year-to-date (YTD), RDFN shares are showing a performance of 119.25% which increased to 173.94% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $9.63 but also hit the highest price of $50.13 during that period. While comparing its average daily trading volume of 1.45 million shares, we see that about 1.23 million changed hands on the day. The stock is currently trading 5.65% above its 20-day simple moving average (SMA20), while that difference is up 12.49% for SMA50 and it goes to 68.53% higher than SMA200.

The Vanguard Group, Inc. acquired 11.7 million shares of Redfin Corporation having value of about $486.67 million. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 1.35 million shares in the company valued at close to $62606428.2, or have control over 13.05% stake in the company. Redfin Corporation (NASDAQ: RDFN) currently have 98.79M outstanding shares and institutions hold larger chunk of about 99.10% of that. Holding of mutual funds in the company is about 43.98% while other institutional holders and individual stake holders have control over 47.67% and 40.41% of the stake respectively.

The stock has a current market capitalization of $4.57B. It has posted earnings per share of -$0.74 in the same period. It has Quick Ratio of 4.10 while making debt-to-equity ratio of 0.48. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for RDFN, volatility over the week remained 5.02% while standing at 5.79% over the month.

Analysts are in expectations that Redfin Corporation (RDFN) stock would likely to be making an EPS of $0.2 in the current quarter, while forecast for next quarter ESPS is $0.01 and it is -$0.35 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.14 which is $0.24 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.07 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -80.10% while it is estimated to increase by 30.00% in next year. EPS is likely to shrink at an annualized rate of 5.00% for next 5-years, compared to annual growth of 11.00% made by the stock over the past 5-years.

Analysts at 17 brokerage firms have issued recommendations for the Redfin Corporation (RDFN)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.70. Out of those 17 Wall Street analysts, 5 recommended a “Buy” rating, while 9 were in favor recommending the stock as a “Hold” and 2 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Compass Point on August 03, 2020 offering a Neutral rating for the stock and assigned a target price of $36 to it. Coverage by Susquehanna stated Redfin Corporation (RDFN) stock as a Negative in their note to investors on July 28, 2020, suggesting a price target of for the stock. On July 13, 2020, BofA Securities Downgrade their recommendations, while on July 10, 2020, RBC Capital Mkts Downgrade their ratings for the stock with a price target of $41. Stock get a Neutral rating from Susquehanna on May 11, 2020.


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