OMAHA—Magnolia Capital Fund, LP, a significant shareholder in RE/MAX Holdings, Inc. (NYSE:RMAX), recently increased its stake in the real estate company. According to a filing with the Securities and Exchange Commission, the fund acquired 29,455 shares of RE/MAX common stock on December 18, 2024. The timing is notable as InvestingPro data shows RE/MAX trading at attractive valuation multiples, despite the stock's recent 12% decline over the past week. The shares were purchased at an average price of $10.82, totaling approximately $318,703.
The transaction was executed in multiple trades with prices ranging from $10.80 to $10.84. Following this acquisition, Magnolia Capital Fund now holds a total of 3,207,495 shares of RE/MAX. The purchase was part of a strategic decision by Magnolia Capital Fund, with Adam K. Peterson, managing member of The Magnolia Group, LLC, overseeing the transaction.
In other recent news, RE/MAX Holdings, Inc. reported mixed third-quarter financial results for 2024. The company registered a slight increase in adjusted EBITDA to $27.3 million, despite a decline in revenue excluding marketing funds due to a decrease in U.S. agent count. However, the company reported growth in international and Canadian agent counts. RE/MAX also adjusted its Q4 revenue guidance down by $1 to $1.5 million due to hurricane impacts, with projected Q4 revenue between $71 million and $76 million.
The full-year 2024 revenue is estimated to be between $306 million and $311 million. Despite setbacks, RE/MAX remains optimistic about its growth initiatives and technology enhancement efforts. These developments highlight the company's resilience amid market challenges. However, the impacts of recent hurricanes and a decrease in U.S. agent count have necessitated adjustments in the company's revenue projections.
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