RE/MAX (NYSE:RMAX) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• RE/MAX missed quarterly expectations, reporting EPS of $0.16 versus the $0.17 consensus estimate. Revenue also came in well below expectations at $53.36 million compared with $73.21 million forecast.
• The company posted a net margin of 2.80% and a negative return on equity of 73.77%, while shares fell $0.65 to $10.42 in Friday trading.
• Insider and analyst activity was mixed: insider Adam K. Peterson sold 216,281 shares, and the stock currently carries a consensus Hold rating with a $13.80 price target.

RE/MAX (NYSE:RMAX - Get Free Report) posted its earnings results on Friday. The financial services provider reported $0.16 EPS for the quarter, missing analysts' consensus estimates of $0.17 by ($0.01), FiscalAI reports. RE/MAX had a net margin of 2.80% and a negative return on equity of 73.77%. The firm had revenue of $53.36 million for the quarter, compared to analysts' expectations of $73.21 million.

RE/MAX Price Performance

NYSE:RMAX traded down $0.65 during midday trading on Friday, hitting $10.42. The company's stock had a trading volume of 825,413 shares, compared to its average volume of 1,503,272. RE/MAX has a fifty-two week low of $5.46 and a fifty-two week high of $11.62. The firm has a market cap of $209.76 million, a P/E ratio of 26.71 and a beta of 1.89. The firm's 50 day moving average is $6.75 and its 200-day moving average is $7.43.

Insider Activity at RE/MAX

In other news, insider Adam K. Peterson sold 216,281 shares of the stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $11.10, for a total value of $2,400,719.10. Following the sale, the insider owned 982,440 shares in the company, valued at $10,905,084. This represents a 18.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last quarter, insiders have sold 1,484,071 shares of company stock valued at $14,850,900. 6.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On RE/MAX

Hedge funds have recently added to or reduced their stakes in the business. First Trust Advisors LP raised its stake in shares of RE/MAX by 2.3% during the 4th quarter. First Trust Advisors LP now owns 63,406 shares of the financial services provider's stock valued at $481,000 after buying an additional 1,446 shares during the last quarter. Campbell & CO Investment Adviser LLC grew its holdings in RE/MAX by 7.5% during the fourth quarter. Campbell & CO Investment Adviser LLC now owns 25,753 shares of the financial services provider's stock worth $195,000 after acquiring an additional 1,796 shares during the period. Alliancebernstein L.P. raised its position in RE/MAX by 5.6% during the third quarter. Alliancebernstein L.P. now owns 37,900 shares of the financial services provider's stock valued at $357,000 after acquiring an additional 2,000 shares in the last quarter. Qube Research & Technologies Ltd lifted its holdings in RE/MAX by 2.7% in the second quarter. Qube Research & Technologies Ltd now owns 102,629 shares of the financial services provider's stock valued at $840,000 after acquiring an additional 2,708 shares during the period. Finally, Barclays PLC lifted its holdings in RE/MAX by 10.6% in the fourth quarter. Barclays PLC now owns 28,503 shares of the financial services provider's stock valued at $216,000 after acquiring an additional 2,740 shares during the period. 93.17% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of RE/MAX in a research report on Monday, April 27th. JonesTrading upgraded RE/MAX from a "hold" rating to a "buy" rating and set a $13.80 target price on the stock in a research note on Monday, April 27th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $13.80.

RE/MAX Company Profile

RE/MAX Holdings, Inc NYSE: RMAX is a global franchisor of real estate brokerage services, offering residential and commercial property transaction support through a network of independently owned and operated offices. The company provides marketing, training, technology platforms and brand recognition for its affiliated agents, facilitating property buying, selling and leasing activities. In addition to core brokerage services, RE/MAX offers ancillary solutions such as mortgage referral, title and escrow coordination, relocation assistance and luxury market specialization.

Established in 1973 by David and Gail Liniger in Denver, Colorado, RE/MAX pioneered a high-commission, agent-driven model designed to attract experienced real estate professionals.

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