RDFN trade ideas
Redfin Testing Weekly Level | Big PlayThis will be my first time trading Redfin but I believe if we break this level we will pump heavy. Aiming for a march contract, may grab something a bit more long-term depending on how tomorrow plays out. Waiting for the breakout than I'll decide. This trade is easy loot...
DotcomJack
I'm not a financial adviser nor is this financial advice.
Redfin W Bottom Breakout
16 % Short interest in the stock could help fuel the rally
Redfin (NASDAQ:RDFN) is up 6.6% after hours following a Q4 earnings report with a healthy revenue beat and a better-than-expected loss.
Revenues jumped 88% to $233.2M for the quarter, with a manifold increase in product revenues in particular. That pushed year-over-year growth in full-year revenues to 60% (to $780M).
Gross profit rose 51% to $40M; real estate services gross profit was $42M (up 51%).
Net loss narrowed, meanwhile, to $7.8M from a year-ago loss of $12.2M.
"This was the fourth quarter in a row that our real estate services revenue growth accelerated, and the second quarter in a row that gross margins improved in every segment of our business," says CEO Glenn Kelman.
Revenue breakout: Service, $134.1M (up 30.8%); Product, $99.1M (up 359%).
For Q1, it's guiding to total revenue of $179M-188M (Y/Y growth of 63-71%) and a net loss between $72M and $68M.
Company profile
Redfin Corp. is a technology-powered residential real estate brokerage, which engages in buying and selling homes. It operates through the following segments: Real Estate, Properties and Other. The Real Estate segment revenue is derived from commissions and fees charged on real estate services transactions. The Properties segment revenue is earned when the Company sells homes that it previously bought directly from homeowners. The Other segment revenue includes fees earned from mortgage banking services, title settlement services, Walk Score data services and advertising. The company was founded by David Selinger, David Eraker, and Michael Dougherty in 2004 and is headquartered in Seattle, WA.
$RDFN Upgrade sparks a short term rally in Redfin Not many investors were expecting NASDAQ:RDFN to receive any upgrades for quite a while considering the price action post earnings, but today John Campbell from Stephens upgraded the stock to Overweight from Underweight and a $23 price target. The stock has a high short interest which contributed to the 7.48% gain today, despite this we believe it will be a short lived bounce as the volume today was not that convincing. If the market becomes weak once again RDFN will soon be able to fill the gap created below.
AVERAGE ANALYSTS PRICE TARGET $21.38
AVERAGE ANALYSTS RECOMMENDATION HOLD
SHORT INTEREST 22.43%
ANALYSTS UPGRADE COMMENTS
"We are upgrading RDFN to Overweight from Underweight and raising our price target to $23 (up from $18). We have come to better appreciate RDFN's market position/strategy and a handful of its newer offerings," Campbell said.
"We also believe that the Company is beginning to lay the groundwork for a more e-commerce type offering (Redfin Direct, Redfin Now, packaged ancillary services, etc.). In addition, we see a very favorable NT set up as the stock has dropped into a more enticing valuation/buying window, many of its top markets are in the process of recovering from a tough 2H18 fallout and we see improved operating results moving forward, starting with impressive 2Q19 results. Lastly, we believe that RDFN has the type of model that can thrive in today's real estate ecosystem or one that is dramatically altered (ex. lower commission rates, limited buyer's agent involvement, etc.), " the analyst added.
COMPANY PROFILE
Redfin Corp. is a technology-powered residential real estate brokerage, which engages in buying and selling homes. It operates through the following segments: Real Estate, Properties and Other. The Real Estate segment revenue is derived from commissions and fees charged on real estate services transactions. The Properties segment revenue is earned when the Company sells homes that it previously bought directly from homeowners. The Other segment revenue includes fees earned from mortgage banking services, title settlement services, Walk Score data services and advertising. The company was founded by David Selinger, David Eraker, and Michael Dougherty in 2004 and is headquartered in Seattle, WA.
$RDFN REDFIN CORP A GROWTH STOCK WITH VALUEThe housing sector has had a recent resurgence on the easing or the FEDS rate hike policy. Builders, suppliers and realtors are benefiting from a increased interest from buyers in a supply shortage market. Redfin is in continued expansion offering investors a good RR.
Redfin, ascending triangle formationI know most of my posts are all crypto, but there is a lot out there and the market is very volatile right now. I am in redfin for the long term, but doesn't mean I can't swing trade it a bit in the mean time.
If you aren't familiar with Redfin, they just IPO'd last year and are a really solid company. I did buy in around $22 and will look to cycle out at these highs in this $30-32 area. If we get a crash, I am holding on to it for the long term as it has a great game plan.
Keep it on your radar.
-Sherem
RDFN: Is Ascending Triangle your favorite pattern?This Ascending Triangle could be a bullish reversal pattern in a downtrend. Wait for it retest the break out point and buy with stop loss. Price target is roughly the same as base range.
$RDFN LongLow volume base establishment with chance for breakout. Tight risk on commons set at 22.64 ask
BRB MAKING MORE FREE $$$$VERY LOW RISK, FOUND A GOOD BOTTOM. CAN EXPECT ANOTHER RUN TO THE HIGH 20'S/LOW 30'S
RDFN Trend Following, bullishUPTREND established
PULLBACK (in-progress)
WAIT FOR continued uptrend
Be careful about holding this over earnings unless it's part of a larger portfolio.
Can't keep this down foreverTwo tests of 20.75. Daily MACD and RSI curling up. Market bottom indicator also showing that this shouldn't make a new low anytime soon.
RDFN doji on the dailyRDFN made a doji today after a few days of down move. If it opens around $26 and starts to ramp up, we could get a continuation to the upside.
