OMAHA—In a recent series of transactions, significant insider purchases were reported for RE/MAX Holdings, Inc. (NYSE:RMAX), involving key stakeholders affiliated with Magnolia Capital Fund, LP. The transactions, detailed in a filing with the Securities and Exchange Commission, show that Adam K. Peterson and associated entities acquired a total of 28,636 shares of RE/MAX common stock. According to InvestingPro data, these purchases come as the stock trades at attractive valuation multiples, with the company’s market capitalization currently standing at $325 million.
The purchases were executed in two tranches. On December 30, 2024, 13,636 shares were bought at a weighted-average price of $10.45 per share. This was followed by a purchase of 15,000 shares on January 2, 2025, at $10.30 per share. The total value of these acquisitions amounts to approximately $296,996. While the stock has seen a significant 27% surge over the past six months, InvestingPro analysis indicates the stock remains undervalued relative to its Fair Value.
Following these transactions, Magnolia Capital Fund, LP, directly owns 3,236,131 shares of RE/MAX. Both The Magnolia Group, LLC, and Adam K. Peterson, who serves as the managing member, may be deemed to share indirect beneficial ownership of these shares, although they disclaim such ownership beyond their respective pecuniary interests.
These transactions underscore continued interest and investment in RE/MAX Holdings by its insiders, reflecting their ongoing commitment to the company’s prospects.
In other recent news, RE/MAX Holdings reported its third-quarter financial results for 2024, presenting a mixed picture amid a challenging real estate market. The company reported a slight increase in adjusted EBITDA to $27.3 million, but a decline in revenue excluding marketing funds due to a decrease in U.S. agent count. On the bright side, RE/MAX reported growth in international and Canadian agent counts.
In response to recent hurricanes, the company plans to provide financial relief to its affiliates, which will impact Q4 performance. RE/MAX adjusted its Q4 revenue guidance down by $1 to $1.5 million due to these hurricane impacts. Despite these challenges, the company remains optimistic for 2025, focusing on operational efficiency and technology enhancements.
Erik Carlson discussed the “wait-and-see” market and the focus on improving agent productivity during the Q&A session. Amy Lessinger highlighted the opportunity for RE/MAX to support struggling independent brokers. These are among the recent developments for RE/MAX as it navigates a complex real estate landscape.
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