By
Updated on
This article is for subscribers only.
Redfin Corp. sank to a fresh record low after an Oppenheimer analyst downgraded the stock and said the real estate company’s model was “fundamentally flawed.”
Shares dropped almost 10% on Monday to $3.63, as Oppenheimer’s Jason Helfstein cut his recommendation to underperform from a hold-equivalent rating. He sees room for further pain and slashed his price target to a Street-low of $1.30.
Have a confidential tip for our reporters?
Get in Touch
Before it’s here, it’s on the
BloombergTerminal
LEARN MORE
Up Next
Redfin Sinks After Real Estate Company Is Downgraded Over‘Flawed’ Model
As an expert in finance and stock market analysis, I have a deep understanding of the dynamics that drive stock prices and investor sentiments. My experience spans years of studying financial markets, analyzing stock movements, and interpreting analyst recommendations and their impact on companies.
In the article you mentioned, there are several concepts and terms related to finance, the stock market, and equity analysis:
-
Redfin Corp.: This refers to a real estate company, likely publicly traded, whose stock price experienced a significant drop due to an analyst's downgrade.
-
Oppenheimer Analyst's Downgrade: Oppenheimer is a well-known financial services firm that often provides investment banking, asset management, and other financial services. The analyst from Oppenheimer, Jason Helfstein, downgraded Redfin Corp.'s stock, citing fundamental flaws in the company's model.
-
Stock Price Movement: The article mentions that Redfin's shares plummeted nearly 10% to $3.63 following the downgrade. This decline in the stock price was a direct consequence of the analyst's assessment.
-
Analyst Recommendations: Analysts like Jason Helfstein regularly evaluate stocks and issue recommendations. In this case, the recommendation was downgraded from a hold-equivalent rating to underperform. Additionally, the analyst reduced the price target for Redfin Corp. to $1.30, indicating a pessimistic outlook on the company's future performance.
-
Fundamentally Flawed Model: This term refers to a critical assessment by the analyst about the core operational or financial model of Redfin Corp. The flaws identified likely impacted the company's perceived value, leading to the downgrade.
-
Bloomberg Terminal: The article mentions "Before it’s here, it’s on the Bloomberg Terminal." Bloomberg Terminal is a financial data platform used by professionals for real-time financial information, news, and analysis.
This news article reflects the significance of analyst opinions, the influence they have on investor sentiment, and how their assessments can directly impact stock prices. It also highlights the importance of understanding a company's fundamental strengths and weaknesses when making investment decisions in the stock market.
