Why Realogy Holdings Corp. [RLGY] is a Good Choice for Investors After New Price Target of $21.00

By Caleb Clifford

June 1, 2021

Realogy Holdings Corp. [NYSE: RLGY] traded at a high on 05/28/21, posting a 1.26 gain after which it closed the day’ session at $17.71. The company report on May 28, 2021 that Realogy Leads NAHREP Top 250 Latino Agents Report With More Affiliated Agents Than Any Other Company.

Residential real estate leader Realogy Holdings Corp. (NYSE: RLGY) affiliated agents once again represent a large portion of the annual National Association of Hispanic Real Estate Professionals (NAHREP®) Top 250 Latino Agents Report for 2021. Honoring the top Latino real estate agents and teams from around the country, the Top 250 ranking features 65 independent sales agents affiliated with Realogy’s brands. All six of Realogy’s leading residential brands, including Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Corcoran®, ERA®, and Sotheby’s International Realty®, are represented across the report’s various rankings.

According to NAHREP’s 2020 State of Hispanic Homeownership Report, the Latino homeownership rate increased in 2021 for the sixth consecutive year despite the health and economic challenges of the COVID-19 pandemic. The report also notes that housing inventory remains the main barrier to increasing Hispanic homeownership, and Latinos will ultimately lead the national homeownership rate for decades to come.

The results of the trading session contributed to over 5342357 shares changing hands. Over the past one week, the price volatility of Realogy Holdings Corp. stands at 4.51% while the volatility over the past one month is 4.16%.

The market cap for RLGY stock reached $2.04 billion, with 115.90 million shares outstanding and 114.17 million shares in the current float. Compared to the average trading volume of 1.42M shares, RLGY reached a trading volume of 5342357 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Realogy Holdings Corp. [RLGY]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RLGY shares is $21.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RLGY stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Barclays have made an estimate for Realogy Holdings Corp. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on January 29, 2021. The new note on the price target was released on December 21, 2020, representing the official price target for Realogy Holdings Corp. stock. Previously, the target price had yet another raise to $13, while Evercore ISI analysts kept a Outperform rating on RLGY stock.

The Average True Range (ATR) for Realogy Holdings Corp. is set at 0.85, with the Price to Sales ratio for RLGY stock in the period of the last 12 months amounting to 0.31. The Price to Book ratio for the last quarter was 1.14, with the Price to Cash per share for the same quarter was set at 3.51. Price to Free Cash Flow for RLGY in the course of the last twelve months was 2.91 with Quick ratio for the last quarter at 1.00.

How has RLGY stock performed recently?

Realogy Holdings Corp. [RLGY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.12. With this latest performance, RLGY shares gained by 5.23% in over the last four-week period, additionally plugging by 43.40% over the last 6 months – not to mention a rise of 192.24% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RLGY stock in for the last two-week period is set at 51.24, with the RSI for the last a single of trading hit 47.33, and the three-weeks RSI is set at 52.99 for Realogy Holdings Corp. [RLGY]. The present Moving Average for the last 50 days of trading for this stock 16.45, while it was recorded at 18.39 for the last single week of trading, and 13.91 for the last 200 days.

Realogy Holdings Corp. [RLGY]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Realogy Holdings Corp. [RLGY] shares currently have an operating margin of +5.74 and a Gross Margin at +16.64. Realogy Holdings Corp.’s Net Margin is presently recorded at -5.79.

Return on Total Capital for RLGY is now 6.03, given the latest momentum, and Return on Invested Capital for the company is -6.46. Return on Equity for this stock declined to -18.68, with Return on Assets sitting at -4.69. When it comes to the capital structure of this company, Realogy Holdings Corp. [RLGY] has a Total Debt to Total Equity ratio set at 221.44. Additionally, RLGY Total Debt to Total Capital is recorded at 68.89, with Total Debt to Total Assets ending up at 53.10. Long-Term Debt to Equity for the company is recorded at 203.86, with the Long-Term Debt to Total Capital now at 63.42.

Reflecting on the efficiency of the workforce at the company, Realogy Holdings Corp. [RLGY] managed to generate an average of -$38,156 per employee. Receivables Turnover for the company is 35.96 with a Total Asset Turnover recorded at a value of 0.81.Realogy Holdings Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.

Earnings analysis for Realogy Holdings Corp. [RLGY]

With the latest financial reports released by the company, Realogy Holdings Corp. posted 0.46/share EPS, while the average EPS was predicted by analysts to be reported at 0.1/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 360.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RLGY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Realogy Holdings Corp. go to 27.70%.

Insider trade positions for Realogy Holdings Corp. [RLGY]

There are presently around $2,185 million, in the hands of institutional investors. The top three institutional holders of RLGY stocks are: BLACKROCK INC. with ownership of 21,291,628, which is approximately 11.264% of the company’s market cap and around 1.90% of the total institutional ownership; VANGUARD GROUP INC, holding 18,309,245 shares of the stock with an approximate value of $324.26 million in RLGY stocks shares; and FMR LLC, currently with $192.79 million in RLGY stock with ownership of nearly 317.39% of the company’s market capitalization.

Positions in Realogy Holdings Corp. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 102 institutional holders increased their position in Realogy Holdings Corp. [NYSE:RLGY] by around 17,478,354 shares. Additionally, 126 investors decreased positions by around 19,576,823 shares, while 30 investors held positions by with 86,326,483 shares. The mentioned changes placed institutional holdings at 123,381,660 shares, according to the latest SEC report filing. RLGY stock had 26 new institutional investments in for a total of 1,215,159 shares, while 40 institutional investors sold positions of 5,533,587 shares during the same period.

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