As previously reported, Craig-Hallum analyst Brad Berning upgraded Redfin to Buy from Hold as he believes the company is well-positioned for the increasing competition and digitalization of distribution channels that will enable consumers to demand greater service and drive the professionalization of the residential real estate agent industry. The analyst also believes Redfin's lower commission revenue model and use of technology to drive efficient, but great customer service will allow the company to reaccelerate its pace of market share gains in the second half of 2019 and early 2020 as it matures into its existing markets that enable networking effects to take place over time. Berning raised his price target on the shares to $24 from $20.

Bearish flow noted in Redfin with 5,561 puts trading, or 1.8x expected. Most active are Jan-26 5 puts and Jan-26 5 calls, with total volume in those strikes near 5,100 contracts. The Put/Call Ratio is 1.82, while ATM IV is up over 1 point on the day. Earnings are expected on May 2nd.