Real Brokerage (NASDAQ:REAX) Rating Lowered to Hold at Wall Street Zen

Key Points

• Real Brokerage's stock rating has been downgraded from "buy" to "hold" by Wall Street Zen, indicating a more cautious outlook from analysts.
• B. Riley initiated coverage of Real Brokerage with a "buy" rating and a target price of $7.00, contrasting with the recent downgrade.
• The company announced a $150 million share buyback plan, suggesting that its board believes the stock is currently undervalued.

Real Brokerage (NASDAQ:REAX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Separately, B. Riley initiated coverage on shares of Real Brokerage in a report on Wednesday, June 25th. They set a "buy" rating and a $7.00 target price on the stock.

Real Brokerage Stock Down 1.0%

Shares of REAX traded down $0.04 during mid-day trading on Friday, hitting $4.08. 750,402 shares of the company's stock were exchanged, compared to its average volume of 790,701. Real Brokerage has a 52 week low of $3.80 and a 52 week high of $6.75. The stock's 50-day simple moving average is $4.17 and its 200-day simple moving average is $4.47. The firm has a market cap of $806.82 million, a price-to-earnings ratio of -58.29 and a beta of 1.04.

Real Brokerage (NASDAQ:REAX - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.03. Real Brokerage had a negative net margin of 1.09% and a negative return on equity of 49.13%. The company had revenue of $353.98 million for the quarter, compared to analysts' expectations of $332.92 million. Analysts forecast that Real Brokerage will post -0.1 earnings per share for the current fiscal year.

Real Brokerage announced that its board has initiated a stock buyback program on Friday, May 30th that permits the company to buyback $150.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 17.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

Institutional Trading of Real Brokerage

Large investors have recently made changes to their positions in the company. Charles Schwab Investment Management Inc. boosted its position in Real Brokerage by 48.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 438,295 shares of the company's stock valued at $2,016,000 after buying an additional 144,011 shares in the last quarter. Fox Run Management L.L.C. acquired a new stake in Real Brokerage in the fourth quarter valued at approximately $177,000. JPMorgan Chase & Co. boosted its position in Real Brokerage by 31.6% in the fourth quarter. JPMorgan Chase & Co. now owns 831,829 shares of the company's stock valued at $3,826,000 after buying an additional 199,913 shares in the last quarter. Blair William & Co. IL lifted its holdings in shares of Real Brokerage by 20.0% during the fourth quarter. Blair William & Co. IL now owns 30,000 shares of the company's stock worth $138,000 after purchasing an additional 5,000 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in shares of Real Brokerage by 3.3% during the fourth quarter. Geode Capital Management LLC now owns 1,264,640 shares of the company's stock worth $5,817,000 after purchasing an additional 40,457 shares during the period. Institutional investors and hedge funds own 53.28% of the company's stock.

About Real Brokerage

The Real Brokerage Inc, together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.