SEATTLE—Bridget Frey, Chief Technology Officer at Redfin Corp (NASDAQ:RDFN), recently sold 21,454 shares of the company's common stock. The transaction, executed on November 25, was conducted at a price of $10 per share, amounting to a total sale value of $214,540.
Following this sale, Frey retains ownership of 446,679 shares in the real estate technology company. The transaction was carried out under a Rule 10b5-1 trading plan, which Frey adopted on May 17, 2024. This plan allows company insiders to sell a predetermined number of shares at a set time, ensuring the transaction is not influenced by any material nonpublic information.
Redfin, headquartered in Seattle, continues to be a prominent player in the real estate market, utilizing technology to streamline and enhance the home buying and selling process.
In other recent news, Redfin Corp has been the focus of various recent analyst evaluations. Goldman Sachs (NYSE:GS) downgraded Redfin's stock from Neutral to Sell due to concerns over the company's valuation and potential market challenges. The firm also adjusted Redfin's price target to $6.50, a slight increase from the previous $6.00 target. Simultaneously, Susquehanna maintained a Neutral rating on Redfin but raised its price target from $7.00 to $10.00, recognizing Redfin's potential to expand into new markets and gain momentum in higher-margin segments.
Despite facing a challenging housing market, Redfin reported a 3% year-over-year revenue increase to $278 million in the third quarter of 2024. However, the company also noted a larger-than-expected net loss of $34 million, significantly higher than the $19 million loss from the previous year. Amid these developments, Redfin is implementing strategic changes, including the Redfin Next (LON:NXT) initiative, which has shown promising results in improving agent productivity and gross margins.
The company anticipates increased home sales in 2025, with potential buyers expected to be more active following recent political events. Redfin's rentals segment also experienced growth, increasing by 9% to $52 million, marking its eighth consecutive quarter of growth. These are recent developments that investors should be aware of as they evaluate their positions in Redfin Corp.
InvestingPro Insights
Redfin's recent stock performance and financial metrics provide additional context to Bridget Frey's insider sale. According to InvestingPro data, Redfin's stock has shown significant volatility, with a 59.9% price increase over the last six months, despite a 18% decline in the past three months. This volatility aligns with an InvestingPro Tip noting that Redfin's stock "generally trades with high price volatility."
The company's financial health presents a mixed picture. While Redfin's revenue for the last twelve months as of Q3 2023 stood at $1.02 billion, with a modest growth of 3.7%, the company is not currently profitable. An InvestingPro Tip highlights that analysts do not anticipate the company will be profitable this year, which could explain the insider's decision to sell shares.
Interestingly, Redfin's market capitalization of $1.19 billion suggests the company is trading at a low revenue valuation multiple, as pointed out by another InvestingPro Tip. This could indicate potential undervaluation, despite the recent stock price volatility.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Redfin, providing a deeper understanding of the company's financial position and market performance.
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