Richard Todd Schwartz, the Chief Executive Officer of Rush Street Interactive, Inc. (NYSE:RSI), a $3.16 billion market cap company whose stock has surged 265.97% over the past year, has recently sold shares amounting to approximately $2.6 million. According to InvestingPro analysis, RSI is currently trading near its 52-week high of $14.96. The transactions, which took place on January 8 and January 10, involved the sale of 149,605 shares at a weighted average price of $14.6095 and 33,142 shares at a weighted average price of $13.9793. These sales were conducted under a pre-established 10b5-1 trading plan. InvestingPro data shows RSI appears undervalued based on its Fair Value analysis, with 12 additional ProTips available for subscribers.
Earlier, on January 7 and January 10, Schwartz acquired a total of 1,716,794 shares through the vesting and settlement of performance stock units, with prices ranging from $14.20 to $14.59. Additionally, shares were withheld to cover taxes related to these transactions. Notably, RSI's revenue grew by 30.31% in the last twelve months, and analysts expect continued growth this year, according to InvestingPro's comprehensive research report.
In other recent news, Rush Street Interactive (RSI) has reported a record-breaking third quarter in 2024, with revenues reaching $232 million, a 37% increase from the previous year. The company's adjusted EBITDA also saw a substantial increase to $23 million, marking a more than fivefold rise year-over-year. In light of these robust results, RSI has revised its 2024 revenue guidance upwards by 3% and its EBITDA guidance by a significant 24%, now predicting EBITDA to be 110% above initial expectations for the year.
These recent developments also include a surge in Monthly Active Users (MAUs) in both North America (28%) and Latin America (122%). RSI also announced a share buyback program of up to $50 million and reported a strong cash position with $216 million in unrestricted cash and no debt. The company is exploring expansion into new markets, primarily focusing on Latin America and Canada, and is open to potential acquisitions.
Despite its growth, RSI faces challenges with low hold rates in North American sports betting and potential regulatory risks such as tax increases. However, the company remains optimistic about iGaming legalization momentum in various states and has seen a decrease in player acquisition costs due to effective marketing strategies. RSI is preparing for a January launch in Brazil and is planning market entries in Peru and potentially Alberta.
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