RE/MAX (NYSE:RMAX) Stock Price Passes Above 50 Day Moving Average - Time to Sell?

Key Points

• RE/MAX shares rose 8.8% and briefly crossed above their 50-day moving average, trading as high as $11.68 and last changing hands at $11.66. The stock’s 50-day average is $9.85, while its 200-day average is $8.05.
• Analyst sentiment is mixed but leans cautious: JonesTrading upgraded the stock to buy with a $13.80 target, while Weiss Ratings reiterated a sell rating. MarketBeat data shows an overall Hold consensus.
• Despite the stock’s recent strength, RE/MAX posted a weaker-than-expected quarter, reporting $0.16 EPS versus $0.22 expected and revenue of $53.36 million versus $73.21 million expected. Insiders have also been selling shares, including a recent sale by Adam K. Peterson.

RE/MAX Holdings, Inc. (NYSE:RMAX - Get Free Report) shares crossed above its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of $9.85 and traded as high as $11.68. RE/MAX shares last traded at $11.6610, with a volume of 268,199 shares traded.

Analyst Upgrades and Downgrades

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

RE/MAX Trading Up 8.8%

The company has a market capitalization of $247.56 million, a price-to-earnings ratio of 1,166.10 and a beta of 1.82. The stock has a 50-day simple moving average of $9.85 and a 200-day simple moving average of $8.05.

RE/MAX (NYSE:RMAX - Get Free Report) last released its quarterly earnings results on Friday, May 8th. The financial services provider reported $0.16 earnings per share for the quarter, missing analysts' consensus estimates of $0.22 by ($0.06). RE/MAX had a negative return on equity of 90.29% and a net margin of 0.13%.The company had revenue of $53.36 million for the quarter, compared to analyst estimates of $73.21 million.

Insider Activity

In related news, insider Adam K. Peterson sold 216,281 shares of RE/MAX stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $11.10, for a total value of $2,400,719.10. Following the completion of the transaction, the insider directly owned 982,440 shares in the company, valued at approximately $10,905,084. This trade represents a 18.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last quarter, insiders have sold 1,341,378 shares of company stock valued at $14,028,770. Corporate insiders own 6.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of RMAX. Harbor Capital Advisors Inc. boosted its stake in RE/MAX by 20.6% in the fourth quarter. Harbor Capital Advisors Inc. now owns 7,698 shares of the financial services provider's stock valued at $58,000 after acquiring an additional 1,317 shares during the period. First Trust Advisors LP grew its holdings in shares of RE/MAX by 2.3% during the fourth quarter. First Trust Advisors LP now owns 63,406 shares of the financial services provider's stock valued at $481,000 after purchasing an additional 1,446 shares during the last quarter. Campbell & CO Investment Adviser LLC raised its position in shares of RE/MAX by 7.5% during the 4th quarter. Campbell & CO Investment Adviser LLC now owns 25,753 shares of the financial services provider's stock worth $195,000 after purchasing an additional 1,796 shares during the period. Alliancebernstein L.P. raised its position in shares of RE/MAX by 5.6% during the 3rd quarter. Alliancebernstein L.P. now owns 37,900 shares of the financial services provider's stock worth $357,000 after purchasing an additional 2,000 shares during the period. Finally, Meeder Asset Management Inc. lifted its holdings in shares of RE/MAX by 9.3% in the 1st quarter. Meeder Asset Management Inc. now owns 31,707 shares of the financial services provider's stock worth $183,000 after purchasing an additional 2,700 shares during the last quarter. Institutional investors own 93.17% of the company's stock.

About RE/MAX

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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