Riskified (NYSE:RSKD) Shares Gap Down – Should You Sell?

Riskified Ltd. (NYSE:RSKD) gapped down prior to trading on Friday . The stock had previously closed at $6.45, but opened at $6.00. Riskified shares last traded at $6.3650, with a volume of 806,012 shares.

Analyst Ratings Changes

Several equities analysts have recently issued reports on RSKD shares. Wall Street Zen upgraded shares of Riskified from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 30th. The Goldman Sachs Group lifted their target price on shares of Riskified from $4.75 to $5.50 and gave the stock a “sell” rating in a research note on Wednesday. UBS Group boosted their target price on shares of Riskified from $5.00 to $6.75 and gave the stock a “neutral” rating in a research report on Thursday. DA Davidson upped their price target on shares of Riskified from $6.00 to $7.50 and gave the company a “buy” rating in a research note on Thursday. Finally, Keefe, Bruyette & Woods raised their price target on shares of Riskified from $5.50 to $6.25 and gave the stock a “market perform” rating in a report on Thursday. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $6.43.

Riskified Stock Performance

The company has a 50 day simple moving average of $5.15 and a two-hundred day simple moving average of $4.69. The firm has a market cap of $959.27 million, a PE ratio of -58.96 and a beta of 1.38.

Riskified (NYSE:RSKD) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.02 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.02. Riskified had a negative return on equity of 3.64% and a negative net margin of 4.23%.The firm had revenue of $98.69 million during the quarter, compared to analysts’ expectations of $89.18 million. As a group, research analysts predict that Riskified Ltd. will post -0.01 earnings per share for the current fiscal year.

Insider Activity at Riskified

In other news, CTO Assaf Feldman sold 230,512 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $5.02, for a total value of $1,157,170.24. Following the sale, the chief technology officer directly owned 1,932,613 shares of the company’s stock, valued at $9,701,717.26. This represents a 10.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erez Shachar sold 435,900 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $5.02, for a total transaction of $2,188,218.00. Following the completion of the sale, the director directly owned 2,193,976 shares in the company, valued at $11,013,759.52. This trade represents a 16.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 4,277,654 shares of company stock worth $21,445,013. 17.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Riskified

Several hedge funds have recently added to or reduced their stakes in RSKD. Renaissance Technologies LLC grew its position in Riskified by 1.7% during the 1st quarter. Renaissance Technologies LLC now owns 1,358,900 shares of the company’s stock worth $5,327,000 after purchasing an additional 22,100 shares during the period. Modern Wealth Management LLC purchased a new position in shares of Riskified during the 1st quarter valued at about $56,000. Sei Investments Co. lifted its holdings in shares of Riskified by 87.4% in the 1st quarter. Sei Investments Co. now owns 356,173 shares of the company’s stock valued at $1,396,000 after buying an additional 166,099 shares during the period. State of Wyoming lifted its holdings in shares of Riskified by 16.4% in the 1st quarter. State of Wyoming now owns 107,785 shares of the company’s stock valued at $423,000 after buying an additional 15,195 shares during the period. Finally, R Squared Ltd boosted its stake in shares of Riskified by 57.8% in the first quarter. R Squared Ltd now owns 19,813 shares of the company’s stock worth $78,000 after buying an additional 7,257 shares during the last quarter. 58.98% of the stock is owned by hedge funds and other institutional investors.

About Riskified

Riskified is a technology company specializing in e-commerce fraud prevention and revenue optimization for online merchants. Its platform combines machine learning, behavioral analytics and proprietary risk models to assess the legitimacy of transactions in real time. By offering a chargeback guarantee, Riskified assumes the financial liability for approved orders that later turn out to be fraudulent, allowing retailers to focus on growth rather than dispute management.

The company’s core product suite addresses various aspects of the online shopping lifecycle, including order approval, account takeover protection and policy compliance.