Mattias Stetz, the Chief Operating Officer of Rush Street Interactive, Inc. (NYSE:RSI), recently sold 20,000 shares of the company's Class A common stock. The transaction, which took place on November 15, was conducted under a 10b5-1 trading plan established on August 16, 2024. The shares were sold at a weighted average price of $11.0187, with the total sale amounting to $220,374. Following this transaction, Stetz holds 580,484 shares directly. Additionally, he has indirect ownership of 205,448 shares through his spouse, though he disclaims beneficial ownership of these securities.
In other recent news, Rush Street Interactive (RSI) has reported an impressive performance in its third quarter of 2024, with revenues reaching a record $232 million, reflecting a 37% increase year-over-year. The company's adjusted EBITDA also saw a significant surge, hitting $23 million, which is more than five times the figure from the previous year. This marks RSI's 15th consecutive period of revenue growth since its public debut.
In light of these strong results, RSI has revised its 2024 revenue guidance upwards by 3% and its EBITDA guidance by a substantial 24%. The company now anticipates its EBITDA to be 110% above initial expectations for the year.
Other recent developments include a significant growth in Monthly Active Users (MAUs) in both North America (28%) and Latin America (122%). RSI also announced a share buyback program of up to $50 million and reported a robust cash position with $216 million in unrestricted cash and no debt.
The company is exploring expansion into new markets, with a focus on Latin America and Canada, and is open to potential acquisitions. Despite facing challenges with low hold rates in North American sports betting and looming regulatory risks, RSI remains optimistic about its growth trajectory, particularly in high-growth markets like Latin America.
InvestingPro Insights
As Rush Street Interactive, Inc. (NYSE:RSI) experiences insider selling, it's crucial to examine the company's financial health and market performance. According to InvestingPro data, RSI's market capitalization stands at $2.65 billion, reflecting its position in the online gaming industry. The company has demonstrated strong revenue growth, with a 30.31% increase over the last twelve months as of Q3 2024, reaching $863.77 million. This growth trend aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the recent insider sale, RSI's stock has shown remarkable performance, with a 141.11% price total return over the past year. This impressive gain is complemented by another InvestingPro Tip highlighting the company's strong return over the last three months. The stock's volatility is notable, as it's currently trading at 95.02% of its 52-week high, suggesting potential for further upside according to some analysts.
Investors should note that RSI holds more cash than debt on its balance sheet, a positive sign for financial stability. However, the company is not currently profitable, with a negative P/E ratio of -769.14. This metric underscores the importance of monitoring RSI's path to profitability, which analysts predict may occur this year, according to another InvestingPro Tip.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for RSI, providing deeper insights into the company's financial health and market position.
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