The world of investments can be perplexing, and it takes a certain level of bustiness to navigate the ebbs and flows of the market. &Versor Investments LP is one such player, having recently acquired a new position in Redfin Co. (NASDAQ:RDFN) in the fourth quarter. According to the company’s most recent filing with the Securities and Exchange Commission, &Versor Investments LP acquired 13,422 shares of Redfin’s stock, valued at approximately $57,000.
Redfin (NASDAQ:RDFN) has been making waves in the online real estate marketplace with its innovative approach to managing properties and providing real estate services. The company operates through five segments: Real Estate Services, Properties, Rentals, Mortgage, and Other.
While investors may have been concerned about Redfin’s reported negative return on equity of 234.33%, the company’s latest earnings report suggests that there could be brighter days ahead. On February 16th, Redfin released its quarterly earnings results that revealed a positive surprise for analysts: ($0.83) EPS for Q4 2020 beating consensus estimates of ($1.13) by $0.30.
To add to their impressive performance that quarter, Redfin had revenue of $479.66 million compared to analyst estimates of $446.39 million; showing not only adaptability but growth amid challenging times – a trait that all investors look for in any given market.
Looking ahead will no doubt mean some uncertainty about where things are headed next — but what we do know is that with its innovative approach to an old conundrum – the current real estate puzzle – Redfin will continue to carve out innovation and play an instrumental role within this unpredictable field.
Institutional Investors Show Interest in Real Estate Marketplace Company, Redfin Corporation
When it comes to investment strategies, institutional investors are known for their high degree of analytic prowess and ability to spot investment opportunities that may elude retail investors. Recently, a number of institutional investors have been purchasing and selling shares of Redfin Corporation (RDFN), a Seattle-based real estate marketplace company.
Renaissance Technologies LLC purchased a new stake in RDFN during the first quarter, valued at approximately $16,882,000. Federated Hermes Inc. acquired a new stake in RDFN during the second quarter worth $5,610,000. Two Sigma Advisers LP increased its position in shares of RDFN by 59.7% in the third quarter and now owns 1,106,800 shares worth $6,464,000 after purchasing an additional 413,700 shares during the period. Cubist Systematic Strategies LLC raised its stake in Redfin by 106.4% in the third quarter and now owns 793,980 shares worth $4,637,000 after purchasing an additional 409,302 shares in the last quarter. Finally, ExodusPoint Capital Management LP acquired a new stake in Redfin during the third quarter worth about $1,890,000. All combined with self & other institutional investors owning 81.81% of the company’s stock.
Shares of RDFN opened Tuesday morning at $9.20 on NASDAQ and struck within close range from its year-low ($3.08) despite also nearing its year-high ($15.15). Its fifty-day moving average is $8.27 while its 200 day moving average is at $6.27 before Tuesday’s open.
Redfin provides real estate services through online channels segmented into Real Estate Services proper – where their primary business lies -, Properties (including their purchase followed by refurbishment program), Rentals aiding both traditional as well as short-term rentals plus interest rates specific to this niche through Redfin Mortgage, and finally the appropriately titled Other. The company was founded by David Selinger, David Eraker, and Michael Dougherty in October 2002.
In April 10th this year, insider Christian John Taubman sold 10,000 shares of the company’s stock at an average $8.75, totalling a worth of $87,500. Following the sale, Taoberman directly holds shares equating to 34,492 worth $301,805. Also noteworthy for RDFN as it moves ahead is the acquisition transaction done by Director James Slavet on February 1st acquiring a wide chunk of shares at an average cost of $7.47 per share equalling to $49,802.49. Following that significant investment action made by JamesSlayer during that initial month; now beginning Q3 there has been huge interest from many other notable institutional investors.
Several brokerages have recently commented on RDFN’s performance with varying sentiments for current and potential investors going forward.
Goldman Sachs Group raised their target price for shares of Redfin from $4.50 to $5.00 but retained a “neutral” rating in February’s mid-month research report while Citigroup raised its price target for RDFN from $5.00 to $8.60 keeping also its “neutral” rating not too long before that of Goldman Sachs’. Oppenheimer however would later declare their reduced price target on Redfin from $3.20 to $7 even while ranking it “underweight”—a statement clearly putting forth significantly lowered growth & income prospects.
Regardless—one consistent message seems clear—further sizeable institutional investments are being made into Redfin Corporation amidst mixed reviews on its future performance leading into Q3 and beyond.
Disclosure: This content is not intended to be financial advice and should not be relied upon when making financial or investment decisions whereby independent professional advice should always be sought first before making such decisions.