Newmark Group (NASDAQ:NMRK) Reaches New 1-Year Low After Analyst Downgrade

Key Points

• Newmark Group shares fell to a new 52-week low, trading as low as $11.55 after Piper Sandler cut its price target from $19 to $14, while retaining an overweight rating.
• Despite the downgrade, analysts maintain a generally positive outlook: the stock has a “Moderate Buy” consensus rating and an average price target of $18.80, versus its recent price near $11.74.
• Newmark reported quarterly EPS of $0.39, in line with estimates, while revenue rose 17% year over year to $888.42 million. The company also paid a quarterly dividend of $0.06, equivalent to a 2.0% annualized yield.

Newmark Group, Inc. (NASDAQ:NMRK - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday after Piper Sandler lowered their price target on the stock from $19.00 to $14.00. Piper Sandler currently has an overweight rating on the stock. Newmark Group traded as low as $11.55 and last traded at $11.74, with a volume of 2,111,121 shares. The stock had previously closed at $12.12.

NMRK has been the topic of several other reports. Wall Street Zen downgraded Newmark Group from a "strong-buy" rating to a "buy" rating in a research report on Wednesday, August 5th. UBS Group set a $22.00 target price on Newmark Group in a research note on Monday, August 10th. Zacks Research cut Newmark Group from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 18th. Barclays lifted their price target on Newmark Group from $19.00 to $20.00 and gave the stock an "overweight" rating in a research report on Monday, August 17th. Finally, Keefe, Bruyette & Woods dropped their price target on Newmark Group from $17.50 to $16.00 and set an "outperform" rating on the stock in a research note on Friday. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $18.80.

Hedge Funds Weigh In On Newmark Group

Institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its holdings in shares of Newmark Group by 4.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,343,384 shares of the company's stock valued at $80,095,000 after acquiring an additional 227,649 shares during the last quarter. Systematic Financial Management LP increased its stake in shares of Newmark Group by 7.7% in the first quarter. Systematic Financial Management LP now owns 1,692,518 shares of the company's stock worth $25,371,000 after acquiring an additional 121,011 shares during the period. Bank of New York Mellon Corp raised its holdings in shares of Newmark Group by 18.9% during the first quarter. Bank of New York Mellon Corp now owns 1,173,058 shares of the company's stock worth $17,584,000 after purchasing an additional 186,236 shares during the last quarter. Sei Investments Co. raised its holdings in shares of Newmark Group by 9.6% during the first quarter. Sei Investments Co. now owns 814,101 shares of the company's stock worth $12,203,000 after purchasing an additional 71,516 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in shares of Newmark Group by 30.6% during the first quarter. Bank of America Corp DE now owns 543,309 shares of the company's stock worth $8,144,000 after purchasing an additional 127,365 shares during the last quarter. 58.42% of the stock is owned by hedge funds and other institutional investors.

Newmark Group Trading Down 3.1%

The stock has a market cap of $2.13 billion, a PE ratio of 14.49 and a beta of 1.76. The company's fifty day moving average is $14.32 and its 200-day moving average is $14.92. The company has a debt-to-equity ratio of 0.50, a current ratio of 0.55 and a quick ratio of 0.55.

Newmark Group (NASDAQ:NMRK - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.39 EPS for the quarter, meeting the consensus estimate of $0.39. The company had revenue of $888.42 million for the quarter, compared to analyst estimates of $865.24 million. Newmark Group had a net margin of 4.11% and a return on equity of 27.07%. The firm's revenue was up 17.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.31 earnings per share. Newmark Group has set its FY 2026 guidance at 1.870-1.980 EPS. On average, analysts predict that Newmark Group, Inc. will post 1.97 earnings per share for the current fiscal year.

Newmark Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, August 14th. Newmark Group's payout ratio is 29.63%.

About Newmark Group

Newmark Group, Inc is a commercial real estate services company that provides advisory, transaction, and property-related services to corporations, institutional investors, landlords, tenants, and other real estate owners and users. Its business spans office, industrial, retail, multifamily, hospitality, and other property sectors.

The company's services include leasing, investment sales, debt and structured finance, valuation and advisory, property management, and facilities management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.