Insider Trading Report: RE/MAX Holdings (RMAX)

Magnolia Capital Fund, LP, a major owner of RE/MAX Holdings (RMAX), recently added to their stake with a 33,102 share buy. The purchase increased their stake by about 1.7 percent, and came to a total cost just over $811,000.

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  • This is the fund’s second buy in the past month, following a 40,239 share buy for just under $883,000 earlier in June. These are the sole insider buys in the past three years. Company insiders have been modest sellers otherwise over the past three years.

    Overall, company insiders own about 13.8 percent of shares.

    The real estate services company has seen shares drop about 29 percent over the past year. Earnings and revenue are up about 25 percent over the past year, thanks to a strong housing market with rising prices and record sales. Currently, the market is pricing in a slowdown for housing right now.

    Action to take: Shares are a bit off their 52-week low near $21, but could likely retest that in the coming weeks and months. Investors might want to wait until they can grab a dividend yield of at least 4 percent, just over the current yield of 3.8 percent, when starting a position in shares here.

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  • For traders, the December $20 calls, last going for about $5.50, are already about $4.50 in-the-money. They can offer mid double-digit gains on a rally in shares before the end of the year. Traders may want to hold off until shares have another down day before buying.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.