Let’s Take a Look at Redfin Corporation (RDFN) Stock

Redfin Corporation (RDFN) share price plummeted -6.97% with the closing price of $51.79 on Thursday. Redfin Corporation stock has an exchanging volume of 3.97 million shares, which is high, contrasted with its 3-months average volume of 1.29M shares. Its market capitalization has now reached to $5.04B and analysts have a consensus target price of $43.00 in the 12-month period.

Redfin Prices Offering of $575 Million of 0% Convertible Senior Notes Due 2025 on October 16, 2020 news published at Yahoo.

Redfin Corporation (RDFN) reported that it has priced $575 million aggregate principal amount of 0% convertible senior notes due 2025 (the “notes”). The aggregate principal amount of the offering was increased from the previously announced offering size of $525 million. The notes are to be sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the “Act”). Redfin also granted the initial purchaser of the notes an option to purchase up to an additional $86.25 million aggregate principal amount of notes. The sale is expected to close on October 20, 2020, subject to customary closing conditions.

The notes will be general unsecured obligations of Redfin, and will not bear regular interest, and the principal amount of the notes will not accrete.

The notes will mature on October 15, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to July 15, 2025, the notes will be convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the notes may be settled in shares of Redfin common stock, cash or a combination of cash and shares of Redfin common stock, at the election of Redfin.

Redfin may not redeem the notes prior to October 20, 2023. Redfin may redeem for cash all or any portion (so long as at least $100 million principal amount remains outstanding) of the notes, at its option, on or after October 20, 2023 if the last reported sale price of Redfin common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which Redfin provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Redfin provides notice of redemption. The redemption price will be 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date.

Holders of the notes will have the right to require Redfin to repurchase for cash all or a portion of their notes at 100% of their principal amount, plus any accrued and unpaid special interest, upon the occurrence of a fundamental change (as defined in the indenture relating to the notes). Redfin will also be required to increase the conversion rate for holders who convert their notes in connection with certain fundamental changes occurring prior to the maturity date or convert their notes called (or deemed called) for redemption in connection with Redfin’s issuance of a notice of redemption.

The notes will have an initial conversion rate of 13.7920 shares of Redfin’s common stock per $1,000 principal amounts of notes (which is subject to adjustment in certain circumstances). This is equivalent to an initial conversion price of approximately $72.51 per share. The initial conversion price represents a premium of approximately 40% to the $51.79 per share closing price of Redfin’s common stock on The Nasdaq Global Select Market on October 15, 2020.

Redfin estimates that the net proceeds from the offering will be approximately $562.8 million (or $647.4 million if the initial purchaser exercises its option to purchase additional notes in full), after deducting the initial purchaser’s discount and estimated offering expenses payable by Redfin.

Redfin expects to use a portion of the net proceeds from the offering of the notes, together with shares of Redfin common stock, to repurchase a portion of its outstanding 1.75% convertible senior notes due 2023 (the “2023 notes”) as described below. Redfin expects to use the remainder of the net proceeds from this offering for working capital and other general corporate purposes. Redfin may also use a portion of the net proceeds to invest in or acquire third-party businesses, products, services, technologies or other assets.

RDFN Past Trading Activity

The market tends to become urbane often, in any event, for prepared investors and traders. In any event, when a merchant got what he/she had expected, the market occasionally chooses to move the other way. This instability leads a few traders questioning and re-thinking their moves. This is the reason becoming acquainted with past price performance, just as both long and short time period, is significant. If we look the past performance, during the last one week, RDFN price has dropped by -3.50%. In the course of past three months sees the stock go up around 33.55%, while it has gain 182.08% over the past six months and 144.99% since the start of the year.

RDFN Earning History

Earnings per share are the amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. In recent quarter of (Sep 2020), the firm recorded a revenue of 213.66 billion, which was higher than the gauge of 222.65M made by certain experts. For that equivalent quarter, Redfin Corporation posted -$0.08 earnings per share (EPS) which was above the consensus estimate of -$0.23 by $0.15, which represents to an expansion by 65.20%.

RDFN Price Performance

Let us presently take a gander at a portion of its probable help and opposition resistance. Late research on Redfin Corporation has seen its stock exchanging -8.03% underneath its three-month high price. A glance at the opposite side additionally observes stock exchanging +43.38% above its three-month low. A more extensive look sees RDFN exchanging -8.03% beneath its 52-week high and 437.80% above from its 52-week low price.

RDFN Instability & Beta Factor

The Volatility of a stock means that the stock’s drop or increase in the event that the more extensive market drops or rushes. A beta score higher than 1 implies that a stock is profoundly unpredictable while underneath 1 implies that the Volatility of a stock is low. If we look trading Volatility. Its 7-day Volatility is around 4.07%, while it has a month to month instability of 4.73%. The company has an ATR (Average True Range) of 2.62.

Leave a Comment