Realogy Shares Are A Golden Opportunity During The Market Correction
Alpha Gen Capital
Alpha Gen Capital
Free Cash Flow And Deleveraging Is The Word At Realogy Holdings
Mike Arnold • 10 Comments
Mike Arnold • 10 Comments
Fri, May 13, 10:05 AM
- The roughed-up stock of Realogy (RLGY +2.5%) finds a sell-side friend in Compass Point's Fred Small. who upgrades to Buy from Neutral. The shares are trading at their lowest valuation since the 2013 IPO, but Small sees deleveraging and earnings growth in the future.
- His $40 price target is up from $35, and compares to the current $32.25.
Wed, May 11, 12:19 PM
- There's chatter of Marcato Capital Management having taken a stake in Realogy (RLGY +1.4%), while lightening up on positions in LPL Financial (LPLA +1.4%) and Avis Budget (CAR +1.4%) to help fund the new holding.
- Previously: Activist investor Marcato Capital discloses 6.3% stake in LPL Financial (Sept. 23, 2015)
- Previously: Avis Budget on the move after Marcato Capital boosts stake (Aug. 17, 2015)
Thu, May 5, 12:12 PM
- Q1 adjusted net loss of $17M improves by 29% from a year ago. Adjusted net loss per share of $0.12 improves 25%. Adjusted EBITDA up 10% to $77M.
- 1M shares bought back during quarter at average price of $33.45 each.
- Company is on track to reach $40M in annual savings, of which $25M should be realized this year.
- Q1 homesale transaction volume (transaction sides x ASP) up 6% Y/Y, with sides up 3% and ASP up 2%.
- For Q2, Realogy (RLGY -5.2%) expects homesale transaction volume gains of 3-7% Y/Y. Transaction sides are expected to be 3-5% higher, with ASP flat to up 2%.
- Previously: Realogy Holdings beats by $0.01, revenue in-line (May 5)
Thu, May 5, 7:26 AM
Wed, May 4, 5:30 PM
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Wed, Feb. 24, 8:23 AM
- 2015 adjusted net income of $219M up 27% Y/Y from 2014. Adjusted EPS of $1.49 up 26%. Free cash flow of $437M up 19%.
- Buyback program of up to $275M announced, good for about 6% of the float at today's price.
- Q1 guidance for homesale transaction volume gains of 6-9%. Homesale transaction sides up 3-5%, with average homesale prices up 3-4%. Cost savings of $25M this year, and a $40M run-rate beginning in 2017.
- Earnings call at 8:30 ET
- Previously: Realogy Holdings misses on revenue (Feb. 24)
- RLGY flat premarket
Wed, Feb. 24, 7:40 AM
Tue, Feb. 23, 5:30 PM
Wed, Jan. 6, 9:59 AM
- A 28% decline in the stock has balanced out the risk/reward on Realogy (RLGY -0.1%), says analyst Michael Dahl, upgrading to Neutral from Underperform, with price target of $36 (current price is $34.52).
- While Dahl continues to have concerns about demand trends, downside risk from sluggish growth and expense pressures have largely played out.
Dec. 22, 2015, 11:59 AM
- The NAR cited new regulations as leading to longer closing times and thus November's big miss in existing home sales.
- Piper Jaffray's Jason Deleeuw says while open purchase title orders at First American Financial (FAF +0.4%) were up 5% Y/Y, closings are about 10% below the normal level. He maintains his Street-low Q4 EPS estimates for both FAF and Fidelity National Financial (FNF +1.2%), noting the delays occurring while both carry more staff than normal.
- As for Realogy (RLGY -0.5%), Deleeuw sees a $10M-$15M risk to the Q4 earnings estimate of $178M, but the company should recapture what's lost in Q1.
- CoreLogic (CLGX -1.5%) generates its mortgage-related revenue from mortgage openings, and is thus at less risk from closing delays.
- Previously: New regulations may be to blame for sharp drop in home sales (Dec. 22)
Nov. 24, 2015, 9:18 AM
- Current estimates for existing home sales assume only limited impact from increases in interest rates, says Compass Point's Fred Small, reiterating his Neutral rating on Realogy (NYSE:RLGY), but cutting the price target to $38 from $44 (last night's close was $41.70).
- Investors will get a better entry point into the stock as home sales expectations come down, he says.
- There's also the regulatory environment, and it's turned against brokers and title services in the last six months, says Small.
- His cuts his FY16 EPS estimate to $1.78 from $1.82 and FY17 to $2.10 from $2.14.
Nov. 5, 2015, 7:48 AM
- Realogy Holdings (NYSE:RLGY): Q3 EPS of $0.75 in-line.
- Revenue of $1.67B (+9.2% Y/Y) beats by $20M.
Nov. 4, 2015, 5:30 PM
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Oct. 27, 2015, 4:05 PM
- The company's new $1.25B in senior secured credit facilities includes an expanded revolver (to $815M from $475M), and a new $435M Term Loan A facility.
- RLGY will be paying off a lot of higher cost debt and expects its 2016 corporate cash interest expense to be about $40M lower to $170M.
Oct. 13, 2015, 1:41 PM
- Screening its U.S. coverage universe to find companies where its analysts views diverge widely from that of the consensus, and then narrowing further to those names with high conviction, Credit Suisse puts out a list of eight buys and 6 sells.
- The full report with thesis on each name is here.
- The buy list: Box (NYSE:BOX), Boyd Gaming (NYSE:BYD), CF Industries (NYSE:CF), Ingredion (NYSE:INGR), L-3 Communications (NYSE:LLL), LaSalle Hotel Properties (NYSE:LHO), Nationstar Mortgage (NYSE:NSM), SeaWorld Entertainment (NYSE:SEAS), Sysco (NYSE:SYY), Wal-Mart (NYSE:WMT), Weatherford (NYSE:WFT), and WisdomTree (NASDAQ:WETF).
- The sells: Aon (NYSE:AON), Dollar Tree (NASDAQ:DLTR), Hyatt Hotels (NYSE:H), Macerich (NYSE:MAC), Pulte (NYSE:PHM), Realogy (NYSE:RLGY).
Oct. 6, 2015, 9:10 AM
- The company hopes to raise $1.15B of senior secured credit facilities - amending an increasing its $750M revolver and a new $400M term loan - with proceeds to combine with cash on hand to pay off about $789M of its highest-cost debt by year-end.
- Realogy (NYSE:RLGY) expects to have the financing completed by the end of the month.
Realogy Holdings Corp. is a preeminent and integrated provider of residential real estate services in the U.S. The company operates through four segments: Real Estate Franchise Services, Company Owned Real Estate Brokerage Services, Relocation Services, and Title & Settlement Services. The Real... More
Industry: Property Management
Country: United States
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