Paul Wierbicki, the Chief Legal Officer of Rush Street Interactive, Inc. (NYSE:RSI), recently sold 7,500 shares of the company's Class A Common Stock. The shares were sold at a price of $14 each, totaling $105,000. This transaction was conducted under a pre-established trading plan dated August 9, 2024.
In addition to the sale, Wierbicki also exchanged 7,000 Class A Common Stock Units for an equivalent number of Class A Common Stock shares. This exchange, executed under the company's Amended and Restated Limited Partnership Agreement, resulted in the cancellation of an equivalent number of Class V Voting Stock shares, which hold no economic rights but do allow voting privileges.
Following these transactions, Wierbicki holds 139,482 shares of Class A Common Stock directly. The securities involved are held by the Paul Wierbicki Declaration of Trust, for which Wierbicki is the grantor, trustee, and beneficiary.
In other recent news, Rush Street Interactive (RSI) has reported record-breaking growth in the third quarter of 2024, with revenues soaring to $232 million, marking a 37% increase from the previous year. The company's adjusted EBITDA also experienced a substantial rise, reaching $23 million, a more than fivefold increase year-over-year. This robust performance marks the 15th consecutive quarter of revenue growth for RSI since its public debut.
In light of these strong results, RSI has revised its 2024 revenue guidance upwards by 3% and its EBITDA guidance by a significant 24%, now projecting EBITDA to be 110% above initial expectations for the year. The company 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.
RSI's Monthly Active Users (MAUs) have seen substantial growth in both North America (28%) and Latin America (122%). The company is exploring expansion into new markets, particularly in Latin America and Canada, and is open to potential acquisitions. Despite facing challenges with low hold rates in North American sports betting and potential regulatory risks, RSI remains optimistic about iGaming legalization momentum in various states and the potential for market growth in areas such as Delaware.
InvestingPro Insights
Rush Street Interactive, Inc. (NYSE:RSI) has been experiencing significant growth and market momentum, as reflected in recent InvestingPro data. The company's stock has shown remarkable performance, with a 232.01% price total return over the past year and a 216.48% return year-to-date. This aligns with the recent insider transaction by Chief Legal Officer Paul Wierbicki, potentially signaling confidence in the company's trajectory.
InvestingPro Tips highlight that RSI holds more cash than debt on its balance sheet, indicating a strong financial position. This solid foundation is further supported by the fact that liquid assets exceed short-term obligations, providing the company with financial flexibility.
The company's revenue growth is noteworthy, with a 30.31% increase in the last twelve months as of Q3 2024, reaching $863.77 million. This growth trend is expected to continue, as analysts anticipate sales growth in the current year, according to another InvestingPro Tip.
While RSI is currently trading near its 52-week high, with the stock price at 97.33% of its peak, investors should note that the RSI suggests the stock may be in overbought territory. This could be relevant to potential investors considering the recent insider sale.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Rush Street Interactive, providing a comprehensive view of the company's financial health and market position.
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