Newmark Group, Inc. (NMRK): Clues to Figure Out Next Bull Run

Analysts at Sandler O’Neill upped their rating on shares of Newmark Group, Inc. (NASDAQ:NMRK) from Hold to Buy in their opinion released on October 12. Sandler O’Neill analysts have downgraded their rating of NMRK stock from Buy to Hold in a separate flash note to investors on May 04.

Bears have made their way to Newmark Group, Inc. (NASDAQ:NMRK) as short interest on NMRK stock has climbed by 53,156 shares during the most recent reporting period. The most recent short interest data has been released for the November 15th settlement date, which shows a increase in total short interest for NMRK, to 522,687, a surge of 11.32% since October 31st. Average daily volume for Newmark Group, Inc. at the November 15th settlement plunged to 161,096, as compared to 257,583 at the October 31st report. That brought days to cover to 3.244568, a 78% increase from the 1.822834 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Newmark Group, Inc. (NASDAQ:NMRK)’s prospects.

Newmark Group, Inc. (NMRK) is expected to jump by 91.86 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $20-month high price target. This represents a whopping 132.56 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17, which represents a return potential of 97.67 percent when compared to the closing price of the stock of $8.6 on Thursday, December 06. The lowest price target for the stock is $12 — slightly more than 39.53 percent from NMRK’s current share price.

The shares are currently floating around the first support level of $8.32. Below this, the next support is placed in the zone of $8.04. Till the time, the NMRK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 39.32 on daily chart, which may remain a cause for comfort. If the price breaks below $8.04 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.77 mark may result into a pull-back move towards $8.95 level.

NMRK shares accumulated 0.17 points or 2.02 percent on Thursday to $8.6 with a light trade volume of 17.05 million shares. After opening the session at $8.29, the shares went as high as $8.665 and as low as $8.21, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.37 billion and now has 159.39 million shares outstanding. Newmark Group, Inc. (NMRK) stock has lost -10.7 percent of market value in 21 trading days.

NMRK stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.57 a share in the trailing twelve months. The stock’s value has fallen -45.91 percent year to date (YTD) against a decline of 0 percent in 12 month’s time. The company’s shares still trade -49.35 percent away from its 1-year high of $16.98 and 7.37 percent up from 52-week low of $8.01. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Newmark Group, Inc. (NMRK) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry NMRK operates in has an average P/E of 19.74. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.73 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.3. 98.6 percent is the gross profit margin for Newmark Group, Inc. and operating margin sits at 8.2 percent. Along with this, the net profit margin is 2.3 percent.

NMRK will be showing off its Q4 earnings on February 08. Analysts are forecasting revenue to climb 26.5 percent to $583M in the next fiscal quarter, while earnings are seen soaring by nearly 40 percent to $0.42 per share. History has shown that shares in Newmark Group, Inc. have gone down on 3 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.59 per share, worse than the $0.6, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $519M, better than the $509M analysts expected. Earnings are estimated to increase by 26.5 percent this year, 8.75 percent next year and continue to increase by 10 percent annually for the next 5 years.