RE/MAX (NYSE:REAX) Shares Break Above 50 Day Moving Average - Here's Why

Key Points

• RE/MAX shares broke above their 50-day moving average, reaching $16.89 before closing at $16.03, well above the $11.86 50-day average.
• Analyst sentiment remains mixed: ratings include one Buy and one Sell, resulting in a consensus “Hold” rating with a $40 average price target.
• The company’s latest quarterly results fell short of expectations, with adjusted earnings of $0.32 per share versus $0.37 expected and revenue of $51.72 million versus $72.80 million projected; institutional investors own 53.28% of the stock.

RE/MAX Holdings, Inc. (NYSE:REAX - Get Free Report)'s stock price crossed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $11.86 and traded as high as $16.89. RE/MAX shares last traded at $16.03, with a volume of 636,774 shares.

Analyst Ratings Changes

REAX has been the topic of a number of recent analyst reports. Weiss Ratings reiterated a "sell (d)" rating on shares of RE/MAX in a report on Friday, July 24th. Wall Street Zen upgraded RE/MAX to a "hold" rating in a research note on Saturday, August 22nd. Finally, JonesTrading reaffirmed a "buy" rating and issued a $40.00 price target on shares of RE/MAX in a report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, RE/MAX currently has a consensus rating of "Hold" and an average price target of $40.00.

RE/MAX Stock Performance

The stock's 50-day moving average is $11.86 and its 200 day moving average is $9.74. The stock has a market capitalization of $349.36 million, a PE ratio of -38.17 and a beta of 0.79.

RE/MAX (NYSE:REAX - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The financial services provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.37 by ($0.05). RE/MAX had a negative net margin of 3.04% and a negative return on equity of 81.65%. The company had revenue of $51.72 million during the quarter, compared to analysts' expectations of $72.80 million.

Institutional Trading of RE/MAX

Institutional investors and hedge funds have recently made changes to their positions in the company. Engineers Gate Manager LP boosted its position in shares of RE/MAX by 29.3% in the 2nd quarter. Engineers Gate Manager LP now owns 15,595 shares of the financial services provider's stock valued at $154,000 after purchasing an additional 3,530 shares during the period. Empowered Funds LLC increased its position in RE/MAX by 6.4% during the first quarter. Empowered Funds LLC now owns 181,253 shares of the financial services provider's stock worth $1,044,000 after buying an additional 10,915 shares during the period. Segall Bryant & Hamill LLC purchased a new stake in RE/MAX in the first quarter valued at approximately $861,000. Bank of America Corp DE lifted its stake in RE/MAX by 23.0% in the first quarter. Bank of America Corp DE now owns 52,997 shares of the financial services provider's stock valued at $305,000 after buying an additional 9,905 shares during the last quarter. Finally, Seven Six Capital Management LLC acquired a new stake in shares of RE/MAX in the first quarter valued at approximately $1,290,000. 53.28% of the stock is owned by hedge funds and other institutional investors.

RE/MAX Company Profile

RE/MAX Holdings, Inc is a franchisor in the real estate services industry and the parent company of the RE/MAX brand. Through its franchise network, the company supports independently owned and operated real estate brokerages and agents who provide residential and commercial property brokerage services to buyers, sellers, landlords and tenants.

RE/MAX supports its franchisees with brand marketing, technology platforms, training, business development resources and other services designed to help agents and brokerage owners operate their businesses.

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