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

Riskified Ltd. (NYSE:RSKD)’s share price gapped down prior to trading on Wednesday . The stock had previously closed at $5.06, but opened at $4.65. Riskified shares last traded at $5.04, with a volume of 317,801 shares.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on RSKD. Keefe, Bruyette & Woods cut their price target on Riskified from $5.50 to $5.25 and set a “market perform” rating on the stock in a research note on Thursday, November 14th. The Goldman Sachs Group decreased their target price on Riskified from $4.50 to $4.00 and set a “sell” rating for the company in a research note on Monday, December 2nd. DA Davidson upgraded shares of Riskified from a “neutral” rating to a “buy” rating and increased their price target for the company from $5.00 to $7.00 in a research note on Monday. Piper Sandler reduced their price objective on shares of Riskified from $7.00 to $6.00 and set an “overweight” rating for the company in a research report on Wednesday, January 8th. Finally, UBS Group cut their price target on shares of Riskified from $4.75 to $4.50 and set a “neutral” rating on the stock in a research note on Thursday, November 14th. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $5.72.

Riskified Price Performance

The firm’s 50-day moving average price is $5.15 and its 200-day moving average price is $4.85. The company has a market cap of $872.66 million, a price-to-earnings ratio of -24.47 and a beta of 1.38.

Riskified announced that its Board of Directors has initiated a share buyback program on Wednesday, November 13th that allows the company to buyback $75.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 9% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Riskified

Institutional investors have recently modified their holdings of the stock. Carolinas Wealth Consulting LLC acquired a new position in shares of Riskified in the 4th quarter valued at about $189,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Riskified by 10.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 219,262 shares of the company’s stock worth $1,037,000 after purchasing an additional 20,505 shares during the period. Two Sigma Investments LP lifted its holdings in shares of Riskified by 61.5% in the 4th quarter. Two Sigma Investments LP now owns 25,490 shares of the company’s stock worth $121,000 after purchasing an additional 9,711 shares during the last quarter. Two Sigma Advisers LP bought a new stake in shares of Riskified in the 4th quarter worth approximately $140,000. Finally, State of Wyoming boosted its position in Riskified by 86.2% during the 4th quarter. State of Wyoming now owns 46,615 shares of the company’s stock valued at $220,000 after purchasing an additional 21,576 shares during the period. Institutional investors and hedge funds own 58.98% of the company’s stock.

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.