Insiders and Hedge Funds are Buying RMAX Stock; What’s Next?
Insiders are making major positive moves at Re/Max Holdings (RMAX). On June 27, the Director of RMAX, Adam Peterson, lapped up 33,102 RMAX shares worth $811,396 at $24.51.
Re/Max Holdings is one of the world’s leading franchisors in the real estate industry. It franchises real estate brokerages globally under the RE/MAX brand and mortgage brokerages in the U.S. under the Motto Mortgage brand.
According to the Tipranks Insider Trading Tool, Peterson has been a major buyer of RMAX shares, with a success rate of 100% and an average profit of 9.1%.
Further, last week, Peterson made another similar purchase of 40,239 RMAX shares worth $882,840 at $21.94 price levels.
With his latest Buys and current position of 2.04 million shares worth $48.67 million, he now owns a whopping 10.6% or over one-tenth of the total shares outstanding.
Mixed Q1 Results
On April 28, RMAX reported mixed first-quarter results, topping revenue estimates but failing to meet earnings expectations.
RMAX reported Q1 GAAP earnings of $0.08 per share, lagging analysts’ expectations of $0.14 per share. However, revenues of $91 million jumped almost 26% year-over-year and exceeded the consensus estimate of $90.77 million.
Markedly, RMAX posted strong franchise sales and retention results in Q1, having inked agreements for 170+ franchises and renewed 285 affiliated offices from January-March 2022.
Wall Street’s Take
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on two Buys and one Hold. The average Re/Max Holdings stock forecast of $29 implies 21.3% upside potential from current levels.
Hedge Funds are Buying Up RMAX Stock
Apart from insiders, hedge funds have been buying up the company’s shares. TipRanks data indicates hedge funds have increased holdings in RMAX by 864,500 shares in the last quarter, indicating a Very Positive hedge fund confidence signal.
Conclusion
At $23.90, shares of RMAX are trading almost near their 52-week lows. With more than 140,000 sales associates in almost 9,000 offices and a presence in more than 110 countries and territories, RE/MAX has a strong global presence.
The significant insider buying activity by a major owner comes at a time when the broader markets are in the doldrums. This may signal a turnaround in the stock’s movement.
