Exp World (NASDAQ:EXPI) Trading Down 15.2% on Disappointing Earnings

Key Points

• Exp World Holdings, Inc. (NASDAQ:EXPI) shares fell 15.2% after reporting weaker-than-expected earnings, with an EPS of ($0.01) compared to the consensus estimate of $0.12.
• The company declared a quarterly dividend of $0.05, with a payout ratio of -181.82%, indicating current challenges in profitability despite a slight year-over-year revenue increase.
• Analysts from DA Davidson set a target price of $12.00 for Exp World, maintaining a "buy" rating, suggesting expectations for future growth despite recent setbacks.

Exp World Holdings, Inc. (NASDAQ:EXPI - Get Free Report)'s share price was down 15.2% on Friday following a weaker than expected earnings announcement. The company traded as low as $9.28 and last traded at $9.14. Approximately 251,840 shares were traded during trading, a decline of 78% from the average daily volume of 1,158,310 shares. The stock had previously closed at $10.78.

The technology company reported ($0.01) EPS for the quarter, missing the consensus estimate of $0.12 by ($0.13). Exp World had a positive return on equity of 1.85% and a negative net margin of 0.36%. The business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the prior year, the firm earned $0.08 earnings per share. Exp World's quarterly revenue was up 1.0% on a year-over-year basis.

Exp World Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 4th. Investors of record on Monday, May 19th were paid a $0.05 dividend. The ex-dividend date of this dividend was Monday, May 19th. This represents a $0.20 annualized dividend and a yield of 2.2%. Exp World's payout ratio is presently -181.82%.

Wall Street Analysts Forecast Growth

Separately, DA Davidson set a $12.00 target price on shares of Exp World and gave the company a "buy" rating in a research note on Friday, July 11th.

Insider Buying and Selling

In other Exp World news, CEO Glenn Darrel Sanford sold 25,000 shares of the business's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $7.99, for a total transaction of $199,750.00. Following the completion of the sale, the chief executive officer directly owned 39,628,400 shares in the company, valued at $316,630,916. The trade was a 0.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Randall D. Miles sold 10,000 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $9.15, for a total value of $91,500.00. Following the completion of the transaction, the director owned 537,190 shares of the company's stock, valued at approximately $4,915,288.50. This represents a 1.83% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 85,000 shares of company stock worth $710,000. 27.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Exp World

Several institutional investors and hedge funds have recently made changes to their positions in the business. Raymond James Financial Inc. bought a new position in Exp World during the fourth quarter worth $1,134,000. Principal Financial Group Inc. lifted its stake in Exp World by 2.3% in the first quarter. Principal Financial Group Inc. now owns 421,493 shares of the technology company's stock valued at $4,122,000 after buying an additional 9,619 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Exp World by 13.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 184,485 shares of the technology company's stock valued at $2,123,000 after purchasing an additional 21,461 shares during the period. GAMMA Investing LLC increased its holdings in shares of Exp World by 1,008.3% during the first quarter. GAMMA Investing LLC now owns 23,130 shares of the technology company's stock valued at $2,365,000 after purchasing an additional 21,043 shares during the period. Finally, Cetera Investment Advisers increased its holdings in shares of Exp World by 5.5% during the fourth quarter. Cetera Investment Advisers now owns 53,440 shares of the technology company's stock valued at $615,000 after purchasing an additional 2,784 shares during the period. 27.17% of the stock is currently owned by hedge funds and other institutional investors.

Exp World Price Performance

The company has a market capitalization of $1.43 billion, a price-to-earnings ratio of -83.29 and a beta of 2.52. The business has a fifty day moving average price of $9.47 and a 200 day moving average price of $9.68.

Exp World Company Profile

eXp World Holdings, Inc, together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees.

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