Market News

Is Rush Street’s Top Shareholder Unsure about Its Success?

Story Highlights

The recent selling of Rush Street’s shares by a top shareholder indicates tough times ahead for the company’s stock.

In a filing with the Securities Exchange Commission (SEC), Gregory A. Carlin, a top shareholder of Rush Street Interactive, Inc. (NYSE: RSI), recently revealed that he has reduced his holdings in the company.

Rush Street is an online gaming and sports entertainment company with operations in the United States, Canada and Latin America.

The stock declined 3.7% on Monday to close at $5.96.

Details of the Sale

Last week, Carlin sold a total of 999,991 shares. On May 26, he sold 80,894 shares at an average price of $6.07 per share. On May 27, he further reduced his stake in the company by 919,097 shares at an average price of $5.95 per share.

Following the transactions, Carlin now owns a total of 2,250,009 shares of the company.

Insiders’ Activity on TipRanks

TipRanks’ Insider Trading Activity tool shows that Insider Confidence Signal is currently Very Negative on RSI, as corporate insiders have sold shares worth $6 million over this period.

Stock Rating

Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on four Buys and two Holds. RSI’s average price target of $12.17 implies that the stock has upside potential of 104.2% from current levels. Shares have declined 52.1% over the past year.

Conclusion

Key insiders slashing their holdings of a company does not reflect well on the company. It could mean that the people at the helm are skeptical about the company’s growth prospecs.

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