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

Riskified Ltd. (NYSE:RSKD)’s share price gapped down prior to trading on Friday . The stock had previously closed at $4.99, but opened at $4.61. Riskified shares last traded at $4.5450, with a volume of 1,059,741 shares.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. JPMorgan Chase & Co. upgraded Riskified from an “underweight” rating to a “neutral” rating and set a $6.00 price target on the stock in a report on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Riskified in a research note on Wednesday, October 8th. Wall Street Zen downgraded shares of Riskified from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. DA Davidson reissued a “buy” rating and issued a $6.00 price objective on shares of Riskified in a research note on Thursday. Finally, Piper Sandler reduced their price target on Riskified from $7.00 to $6.00 and set an “overweight” rating on the stock in a report on Monday, August 18th. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $5.89.

Riskified Price Performance

The firm has a fifty day moving average of $4.72 and a two-hundred day moving average of $4.88. The stock has a market capitalization of $740.12 million, a P/E ratio of -19.96 and a beta of 1.36.

Riskified (NYSE:RSKD) last posted its earnings results on Wednesday, November 12th. The company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01. Riskified had a negative net margin of 11.04% and a negative return on equity of 7.87%. The business had revenue of $81.86 million for the quarter, compared to the consensus estimate of $80.25 million. During the same quarter last year, the firm posted $0.03 EPS. The company’s revenue for the quarter was up 3.9% on a year-over-year basis. Riskified has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Riskified Ltd. will post -0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RSKD. Teacher Retirement System of Texas boosted its position in Riskified by 61.3% during the first quarter. Teacher Retirement System of Texas now owns 39,280 shares of the company’s stock valued at $181,000 after purchasing an additional 14,934 shares in the last quarter. Envestnet Asset Management Inc. grew its position in shares of Riskified by 21.7% in the 1st quarter. Envestnet Asset Management Inc. now owns 110,012 shares of the company’s stock worth $508,000 after buying an additional 19,642 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its position in Riskified by 24.5% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 410,570 shares of the company’s stock valued at $1,897,000 after acquiring an additional 80,725 shares during the last quarter. Invesco Ltd. acquired a new stake in Riskified in the first quarter valued at approximately $51,000. Finally, Nuveen LLC acquired a new stake in Riskified in the first quarter valued at approximately $362,000. 58.98% of the stock is currently owned by hedge funds and other institutional investors.

About Riskified

Riskified Ltd., together with its subsidiaries, develops and offers an e-commerce risk management platform that allows online merchants to create trusted relationships with consumers in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. It offers Chargeback Guarantee that ensures the legitimacy of merchants' online orders; Policy Protect, a machine learning solution designed to detect and prevent refund and returns policy abuse in real-time; Account Secure, a solution that cross-checks every login attempt; Dispute Resolve, which is used to compile submissions for fraud and non-fraud related chargeback issues; and PSD2 Optimize that helps merchants avoid bank authorization failures and abandoned shopping carts.