Redfin Stock Rises on Brand New Bull Note

Calls have been popular in the options pits

Assistant Editor
Sep 25, 2020 at 10:30 AM
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The shares of Redfin Corporation (NASADAQ:RDFN) are up 1.3% at $47.05 at last check, after Piper Sandler initiated coverage with an "overweight" rating and $56 price target. The firm cited the company's digital model, and improved home sales for July, noting that the industry looks strong into the rest of 2020. Redfin also reported that new construction home sales for August dropped 4%, reversing its July course, but existing home sales grew 5.2%. 

RDFN has moved lower since its Sept. 10 all-time high of $55.42, stalling at the $47 region this week, where the 30-day moving average has emerged as pressure. However, year-to-date, the stock is up an impressive 122.3%.

Coming into today, half of the 16 analysts in coverage sport a tepid "hold" rating on Redfin stock, with six at a "strong buy" and two a "sell" or worse. Meanwhile, the 12-month consensus price target of $43 is a 8.6% discount to current levels.

Calls have outweighed puts in the options pits for the last 10 weeks. This is per RDFN's 50-day call/put volume ratio of 4.31 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 87% of readings from the past year, meaning long calls are being picked up at a faster-than-usual rate.  

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