Why Redfin Stock Was Deep in the Red Today
The housing market might be persistently frothy despite economic concerns, but we can't say the same for Redfin (NASDAQ: RDFN) stock on Monday. The company's shares had an inglorious start to the work week, falling nearly 11% after an analyst downgraded his company's recommendation on the online real estate listings company.
The downgrader was Wedbush Securities' Jay McCanless, who took over his company's coverage on Redfin stock. In taking the reins, he promptly reduced Wedbush's official recommendation on the stock to neutral from the previous outperform (read:buy). In doing so, McCanless chopped the price target on the shares to $9 apiece; formerly, the price was $14.
We are in the middle of one of the great bull markets for housing; as such, the analyst feels -- with some justification -- that Redfin as a company should have performed better last year. It currently has a lengthening bottom-line loss streak going and landed in the red in all four of its reported 2021 quarters.
Source Fool.com
