Why Is Redfin (RDFN) Stock Rocketing Higher Today

What Happened:

Shares of real estate technology company Redfin (NASDAQ:RDFN) jumped 10.4% in the morning session after B. Riley Securities analyst Naved Khan upgraded the stock's rating from Neutral to Buy. The analyst added, "While buy-side agent commissions may get pressured industry-wide, we find Redfin well-positioned for volume gains." After the initial pop the shares cooled down to $9.58, up 2.4% from previous close.

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What is the market telling us:

Redfin’s shares are very volatile and over the last year have had 61 moves greater than 5%. But moves this big are very rare even for Redfin and that is indicating to us that this news had a significant impact on the market’s perception of the business.

Redfin is down 3.6% since the beginning of the year, and at $9.58 per share it is trading 18.3% below its 52-week high of $11.72 from August 2024. Investors who bought $1,000 worth of Redfin’s shares 5 years ago would now be looking at an investment worth $582.07.

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