OMAHA—Magnolia Capital Fund, LP, a significant shareholder in RE/MAX Holdings, Inc. (NYSE:RMAX), has reported the purchase of additional shares according to a recent SEC filing. The fund acquired 11,798 shares of RE/MAX common stock on January 10, with a total transaction value of approximately $113,732. The shares were purchased at a weighted average price of $9.64 per share, with individual transaction prices ranging from $9.60 to $9.65. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with multiple indicators showing attractive valuation multiples.
Following this transaction, Magnolia Capital Fund, LP, directly owns 3,247,929 shares of RE/MAX. The filing also notes that The Magnolia Group, LLC, as the general partner and investment manager of the fund, along with Adam K. Peterson, its managing member, could be deemed to share indirect beneficial ownership of the shares. However, both parties disclaim beneficial ownership except to the extent of their pecuniary interests. The company currently maintains strong liquidity with a current ratio of 1.37, while trading at notably low EBIT and EBITDA multiples. For comprehensive analysis of RE/MAX and 1,400+ other stocks, investors can access detailed Pro Research Reports through InvestingPro.
"In other recent news, RE/MAX Holdings has maintained its financial guidance for the fourth quarter and full year of 2024, despite a change in leadership and a decrease in U.S. agent count. The company's President, Amy Lessinger, is stepping down, and a search for her successor is underway. For the fourth quarter, RE/MAX Holdings expects revenue between $71.0 million to $76.0 million and Adjusted EBITDA between $20.5 million and $23.5 million. The full-year revenue is projected to be between $306.0 million and $311.0 million, with Adjusted EBITDA estimated at $95.0 million to $98.0 million. These recent developments come after a mixed Q3 2024 performance, with an increase in Adjusted EBITDA to $27.3 million, despite a decline in revenue due to a decrease in U.S. agent count. Despite these challenges, the company reported growth in international and Canadian agent counts. RE/MAX plans to provide financial relief to affiliates affected by recent hurricanes, impacting Q4 performance."
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