(VIANEWS) – Redfin Shares Have Declined 23.78% in 10 Sessions; NASDAQ Is Down 0.09 Percent
Redfin (NASDAQ: RDFN) shares have experienced a sharp drop over the last ten sessions, falling 23.78% from EUR9.25 on September 11th to EUR7.05 as of 10:03 EST Monday morning – contributing to an overall decrease in NASDAQ’s value by 0.09% to EUR13,211.81.
Redfin closed at EUR7.00 last Friday, which is 60.41% lower than their 52-week high of EUR17.68. Investors should carefully monitor this stock’s performance over the coming days and weeks in order to assess any possible recoveries in its stock price.
About Redfin
Redfin Corporation is a premier residential real estate brokerage firm in both the US and Canada, offering comprehensive real estate brokerage services such as buying and selling homes, title and settlement services, mortgage origination/sales, online real estate marketplace operations and operating an online real estate marketplace. Established in 2002 and based out of Seattle Washington since May 2006 originally known as Appliance Computing Inc, its name was changed to Redfin Corporation on May 6, 2006.
Yearly Analysis
Redfin’s stock is currently trading at EUR7.05, well below its 52-week high of EUR17.68 but above its 52-week low of EUR3.08. This data suggests that Redfin has experienced an alarming decrease in value over the past year.
Redfin is expected to experience negative sales growth of 51.5% this year; however, projections show an expected increase of 2.3% over next year.
Redfin’s EBITDA, which measures the company’s operating profitability, currently stands at 0.89. While this figure is positive compared to similar companies within its industry, Redfin stands out with a relatively lower EBITDA compared to others in its field.
Given Redfin’s current valuation and negative sales growth outlook, investors should tread with caution when investing in its stock. But if the company can improve sales growth and boost EBITDA growth over time, then its stock may experience a turnaround and become more attractive investment options in future. Investors should continue monitoring Redfin’s financial performance and industry trends closely to make informed investment decisions.
Technical Analysis
Redfin’s stock price has recently experienced an overall downward trend, falling below both its 50-day and 200-day moving averages, EUR12.32 and EUR8.67, which indicates an eroding effect over both short and long terms. Furthermore, Redfin’s current trading volume of 243,656 indicates reduced trading activity compared to its average volume of 37,588,700 over this timeframe.
The stock’s volatility has been increasing over time. Over the last week, month, and quarter, its intraday variation averages have ranged between negative 4.11%, negative 1.30% and positive 4.30% respectively; its highest amplitude of average volatility reached 4.23% over each timeframe (week, month and quarter).
According to the stochastic oscillator, which provides an indicator for overbought and oversold conditions, Redfin’s stock appears overbought (>=80), suggesting it may be due for correction and investors should proceed with caution when trading in this stock.
Overall, Redfin’s stock is in a bearish trend with low trading volume and increased volatility. Investors should closely track its movements before trading in it to avoid potential risky trades.
Quarter Analysis
Redfin, the technology-powered real estate brokerage, has experienced an alarming decline in sales growth for both its current and next quarters, with negative growth rates of 54.9% and 49.3% respectively. However, the company forecasts a strong rebound in growth for this and subsequent quarters at 75.9% and 80.7%, respectively. Redfin’s recent revenue decline is of concern; however, their quarterly estimates for growth indicate an encouraging future outlook. AnalysisRedfin’s negative sales growth should also be taken seriously but their current and next quarter projections show signs of recovery. This could be attributed to the company’s focus on innovation and technological advancement in real estate, which could attract more customers and increase sales. As noted above, the reduction in year-on-year quarterly revenue growth could also be related to an overall economic slowdown caused by COVID-19 pandemic. However, Redfin’s revenue base of 2.2B for the twelve trailing months indicates a sound financial foundation.Despite current negative sales growth estimates for Redfin, growth estimates for current and upcoming quarters show strong potential recovery – investors who believe in its ability to innovate and overcome current downturns may consider investing in Redfin as they would likely make a solid return.
Equity Analysis
Redfin’s trailing twelve months earnings per share (EPS) stands at EUR-2.08, signalling that it is not currently making profits for shareholders. This factor must be taken into consideration when considering stocks for investment as companies without profits may not offer adequate returns to investors.
Return on Equity (ROE) for the twelve preceding months stands at negative 169.41%, signaling to investors that it is failing to generate profits relative to shareholder’s equity – another red flag. Companies with negative ROE may struggle to generate profits from operations and grow their business over time.
Redfin’s negative EPS and ROE indicate that its shareholders may be suffering in terms of profits generated, with its business possibly struggling to expand further. Investors should carefully consider these aspects and any additional relevant information before making investment decisions.
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