Real Brokerage (NASDAQ:REAX) Raised to Buy at Wall Street Zen

Key Points

• Real Brokerage's stock rating was upgraded from "hold" to a "buy" by Wall Street Zen, reflecting positive analyst sentiment towards the company's future performance.
• Real Brokerage has initiated a stock buyback program allowing it to repurchase up to $150 million in outstanding shares, indicating management’s belief that the stock is undervalued.
• The company reported a quarterly revenue of $540.75 million, surpassing expectations, although it still experienced negative metrics such as a return on equity of -35.33% and a net margin of -0.78%.

Wall Street Zen upgraded shares of Real Brokerage (NASDAQ:REAX - Free Report) from a hold rating to a buy rating in a research report released on Saturday morning.

A number of other brokerages also recently issued reports on REAX. B. Riley began coverage on Real Brokerage in a report on Wednesday, June 25th. They issued a "buy" rating and a $7.00 price target for the company. Jones Trading reaffirmed a "buy" rating and issued a $6.00 price target on shares of Real Brokerage in a report on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company's stock. Based on data from MarketBeat.com, Real Brokerage presently has a consensus rating of "Buy" and an average target price of $6.33.

Real Brokerage Stock Down 1.6%

REAX traded down $0.08 on Friday, reaching $4.97. The company's stock had a trading volume of 1,721,526 shares, compared to its average volume of 2,893,286. The stock has a 50 day moving average of $4.55 and a two-hundred day moving average of $4.41. The company has a market capitalization of $982.82 million, a price-to-earnings ratio of -99.40 and a beta of 1.05. Real Brokerage has a fifty-two week low of $3.80 and a fifty-two week high of $6.61.

Real Brokerage (NASDAQ:REAX - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.01 earnings per share (EPS) for the quarter. The firm had revenue of $540.75 million during the quarter, compared to the consensus estimate of $510.58 million. Real Brokerage had a negative return on equity of 35.33% and a negative net margin of 0.78%. As a group, analysts anticipate that Real Brokerage will post -0.1 earnings per share for the current fiscal year.

Real Brokerage announced that its Board of Directors has authorized a share buyback plan on Friday, May 30th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the company to buy up to 17.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Real Brokerage

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. New York State Teachers Retirement System purchased a new stake in Real Brokerage in the first quarter valued at approximately $37,000. Envestnet Asset Management Inc. purchased a new stake in Real Brokerage in the second quarter valued at approximately $47,000. Thrivent Financial for Lutherans purchased a new stake in Real Brokerage in the second quarter valued at approximately $50,000. Diversified Trust Co purchased a new stake in Real Brokerage in the first quarter valued at approximately $47,000. Finally, Engineers Gate Manager LP purchased a new stake in Real Brokerage in the second quarter valued at approximately $52,000. Hedge funds and other institutional investors own 53.28% of the company's stock.

Real Brokerage Company Profile

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.