Real Brokerage (NASDAQ:REAX) Shares Down 10% – Time to Sell?

Shares of The Real Brokerage Inc. (NASDAQ:REAX) were down 10% during trading on Monday . The company traded as low as $2.37 and last traded at $2.3750. 1,295,605 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 3,108,688 shares. The stock had previously closed at $2.64.

Key Headlines Impacting Real Brokerage

Here are the key news stories impacting Real Brokerage this week:

• Positive Sentiment: Merger completed: Real Brokerage and RE/MAX Holdings have completed their business combination, creating Real REMAX Group. The transaction combines Real’s technology-driven brokerage platform with the established RE/MAX brand and is expected to expand the company’s scale and market reach. Real REMAX Group closes merger, REAX begins trading Aug. 25
• Positive Sentiment: $450 million repurchase authorization: Real REMAX Group authorized up to $450 million in share buybacks, signaling management’s confidence in the combined company and potentially providing support for earnings per share and the stock valuation. Real REMAX Group Announces $450 Million Share Repurchase Authorization
• Positive Sentiment: Major price-target increase: JonesTrading raised its target for REAX from $4 to $40 and assigned a “buy” rating. The aggressive revision reflects heightened expectations following the merger, although the size of the increase may also contribute to elevated volatility.
• Neutral Sentiment: Trading halt: Trading in REAX was temporarily halted with a “News Pending” designation before the merger-related developments were disclosed. Such halts are typically used to allow investors to receive material information simultaneously.
• Neutral Sentiment: Short-interest data appears unreliable: Reported short interest was zero shares, unchanged from the prior period, with a zero-day days-to-cover ratio. The accompanying “NaN” percentage change suggests a data-quality issue rather than a meaningful change in bearish positioning.

Wall Street Analysts Forecast Growth

REAX has been the topic of several recent research reports. B. Riley Financial restated a “buy” rating on shares of Real Brokerage in a report on Friday, May 8th. Zacks Research cut Real Brokerage from a “hold” rating to a “strong sell” rating in a report on Friday, August 7th. Edward Jones reduced their price objective on Real Brokerage from $50.00 to $40.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Zelman & Associates raised Real Brokerage to an “outperform” rating in a research note on Friday, August 7th. Finally, JonesTrading upped their target price on Real Brokerage from $4.00 to $40.00 and gave the company a “buy” rating in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $51.50.

Real Brokerage Trading Up 18.5%

The firm’s fifty day moving average is $20.48 and its 200-day moving average is $22.13. The stock has a market capitalization of $6.20 billion, a PE ratio of -406.14 and a beta of 0.78.

Real Brokerage (NASDAQ:REAX) last announced its earnings results on Tuesday, June 30th. The company reported ($3.00) earnings per share for the quarter. Real Brokerage had a negative return on equity of 25.32% and a negative net margin of 0.72%.The company had revenue of $700.58 million for the quarter. As a group, equities analysts predict that The Real Brokerage Inc. will post -0.05 EPS for the current year.

Institutional Trading of Real Brokerage

Institutional investors have recently added to or reduced their stakes in the stock. Principal Financial Group Inc. acquired a new position in Real Brokerage during the first quarter worth $29,000. Abel Hall LLC acquired a new stake in shares of Real Brokerage in the first quarter valued at $31,000. SmartHarvest Portfolios LLC acquired a new stake in shares of Real Brokerage in the first quarter valued at $38,000. Xponance LLC purchased a new stake in shares of Real Brokerage in the 4th quarter valued at $38,000. Finally, Hudson Bay Capital Management LP purchased a new stake in shares of Real Brokerage in the 4th quarter valued at $41,000. Institutional investors and hedge funds own 53.28% of the company’s stock.

Real Brokerage Company Profile

Real Brokerage Inc is a publicly traded, cloud-based residential real estate brokerage headquartered in Toronto, Canada, with operations across the United States and Canada. The company’s platform offers licensed real estate professionals a fully integrated suite of digital tools designed to streamline every phase of the property transaction process, from lead generation to closing.

Through its proprietary technology, Real Brokerage provides agents with transaction management, customer relationship management, digital marketing automation and real-time analytics in a single, user-friendly interface.