What Happened?
Shares of real estate franchise company RE/MAX (NYSE: RMAX) jumped 3.3% in the afternoon session after the company announced the largest conversion in its history, significantly expanding its footprint in Canada.
The move brought two major Toronto-area brokerages, formerly operating as Royal LePage Your Community Realty and Royal LePage Connect Realty, into the RE/MAX global network. This single transaction added 17 offices and over 1,200 agents to the company. The converted brokerages represented a combined sales volume of more than $3 billion in the previous year alone. This expansion was seen as a tangible growth catalyst, instantly boosting the company's scale and strengthening its cross-border and luxury market capabilities in the region.
After the initial pop the shares cooled down to $8.17, up 3.9% from previous close.
Is now the time to buy RE/MAX? Access our full analysis report here, it’s free.
What Is The Market Telling Us
RE/MAX’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock dropped 11.9% on the news that the company delivered disappointing fourth-quarter 2024 results: its full-year revenue guidance missed significantly and its EBITDA guidance for next quarter fell short of Wall Street's estimates.
Revenue declined 5.4% year on year as the company saw a 4.8% drop in U.S. and Canadian agent count. On the other hand, RE/MAX beat analysts' EPS expectations this quarter and its EBITDA outperformed Wall Street's estimates. Overall, this quarter could have been better.
RE/MAX is up 10.3% since the beginning of the year, but at $8.17 per share, it is still trading 22% below its 52-week high of $10.47 from February 2025. Investors who bought $1,000 worth of RE/MAX’s shares 5 years ago would now be looking at an investment worth $212.71.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.
