William Blair analyst Stephen Sheldon has maintained their neutral stance on RMAX stock, giving a Hold rating today.
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Stephen Sheldon has given his Hold rating due to a combination of factors impacting Re/Max Holdings. The company’s second-quarter performance showed mixed results, with revenue slightly below expectations, although agent count and profit exceeded forecasts. The increase in agents was primarily driven by international markets, while revenue, excluding marketing funds, experienced a decline. Despite a positive adjusted EBITDA, management’s updated guidance suggests a further decline in revenue and EBITDA margins in the upcoming years.
Sheldon’s rating reflects the cautious outlook for Re/Max Holdings amid a challenging housing market. The company’s updated guidance indicates a modest agent growth and a contraction in adjusted EBITDA margins, which could weigh on future performance. Additionally, the stock’s current trading multiples suggest limited upside potential. These factors combined lead to a Hold rating, as the company navigates through the ongoing market challenges and seeks to stabilize its financial metrics.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.50 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RMAX in relation to earlier this year.