Insider Trading May 6, 2026 06:21 PM

Rush Street Interactive CEO Executes $20.38 Million in Stock Sales

Richard Schwartz disposes of 816,500 shares via affiliated trusts amidst recent company growth and secondary offering announcements.

By Avery Klein RSI

Richard Todd Schwartz, the Chief Executive Officer of Rush Street Interactive, Inc. (NASDAQ: RSI), has completed significant stock transactions totaling $20,379,840. According to filings with the SEC, these sales occurred over a two-day period on May 5 and May 6, 2026. The disposals were managed through a Trust and an Irrevocable Trust, involving the sale of Class A Common Stock.

Rush Street Interactive CEO Executes $20.38 Million in Stock Sales
RSI

Key Points

  • CEO Richard Schwartz sold over $20 million in RSI stock through affiliated trusts on May 5 and May 6, 2026.
  • The sales occurred alongside a secondary offering of 10 million shares involving the trusts of top executives for personal financial and estate planning.
  • Despite recent insider selling, analysts like Macquarie have raised price targets following an EBITDA beat driven by iCasino and user growth in North America and Latin America.
  • Impacted sectors: The gaming and iCasino sectors, as well as broader equity markets sensitive to executive sentiment and secondary offerings.

Rush Street Interactive, Inc. (NASDAQ: RSI) has seen notable insider activity following reports that Chief Executive Officer Richard Todd Schwartz has sold shares totaling $20,379,840. Based on recent SEC filings, these transactions were executed on May 5 and May 6, 2026.

The volume of the sale involved a total of 816,500 shares of Class A Common Stock, which were disposed of through affiliated trusts. The breakdown of these transactions shows that on May 5, 710,000 shares were sold at a price point of $24.96 per share. This was followed by the sale of an additional 106,500 shares on May 6, also priced at $24.96 per share. These specific transactions were conducted via a Trust and an Irrevocable Trust.

These sales take place against a backdrop of substantial stock appreciation for RSI, which has seen its shares climb 142% over the last year. At the time of these reports, the stock was trading at $27.86, with the company holding a market capitalization of $6.79 billion. Despite this recent rally, analysis from InvestingPro suggests that the stock may still be undervalued relative to its Fair Value. This assessment is supported by RSI trading at a low P/E ratio in relation to near-term earnings growth, maintaining a PEG ratio of 0.32.

The structure of these transactions involved an exchange process. Prior to the sales, an equal number of Class A Common Stock shares were acquired through the conversion of Class A Common Units of Rush Street Interactive, L.P. into Class A Common Stock of the Issuer. At the same time as these exchanges, an equivalent quantity of Class V Voting Stock - which carries voting power but holds no economic rights - was canceled. These administrative movements occurred on the same dates as the reported sales.

Post-transaction, Mr. Schwartz’s holdings include 374,036 shares of Class A Common Stock and 5,278,885 shares of Class V Voting Stock held directly. Furthermore, he maintains indirect holdings through affiliated trusts consisting of 5,278,885 Class A Common Units of Rush Street Interactive, L.P., which are eligible for exchange into Class A Common Stock.


In related corporate developments, Rush Street Interactive has announced a secondary offering comprising 10 million shares of Class A common stock at a price of $26.00 per share. This offering includes participation from trusts belonging to Executive Chairman Neil Bluhm, CEO Richard Schwartz, and COO Mattias Stetz. These executives are selling less than 10% of their individual holdings for the purposes of estate planning and personal financial planning. The closing of this offering is anticipated for May 7, 2026, subject to customary conditions.

Market sentiment remains bolstered by recent analyst activity. Macquarie has updated its price target for the company, raising it from $25.00 to $28.00 while maintaining an Outperform rating. This move follows a report that RSI exceeded EBITDA expectations by 24% in the first quarter of 2026. Such performance was driven by user growth in Latin America and North America, alongside market share gains in the iCasino sector.

Risks

  • The execution of a 10 million share secondary offering could impact market liquidity and pricing dynamics in the gaming sector.
  • While analysts remain positive, the scale of insider selling, even if for estate planning, is a factor for investors to monitor regarding leadership alignment.
  • Impacted sectors: The gambling/iCasino industry and the broader stock market.

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