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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Newmark (NMRK) Stock Trades Up, Here Is Why

NMRK Cover Image

What Happened?

Shares of real estate services firm Newmark (NASDAQ: NMRK) jumped 4% in the afternoon session after analysts at Citizens JMP initiated coverage on the stock with a "Market Outperform" rating, calling it their top pick in the real estate services sector. 

The investment firm set a $17.00 price target, citing several factors for its optimistic outlook. Analysts expect Newmark to gain market share on its peers, driven by recent hiring of established producers with long-term contracts. They also noted the positive impact of resolving an ownership overhang and highlighted recent investments in Europe and Asia as potential new revenue streams in underpenetrated markets. Citizens JMP pointed out that Newmark trades at a significant discount to its sector average, suggesting room for growth, especially with an anticipated pickup in transaction-based revenues.

After the initial pop the shares cooled down to $12.73, up 3.3% from previous close.

Is now the time to buy Newmark? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Newmark’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 5 months ago when the stock gained 12.1% on the news that the company reported strong fourth quarter 2024 results that blew past analysts' revenue expectations, driven by its Investment Sales division. In addition, its EPS and EBITDA beat. On the other hand, its full-year EBITDA guidance missed. Still, this quarter had some key positives.

Newmark is up 1.5% since the beginning of the year, but at $12.73 per share, it is still trading 20.3% below its 52-week high of $15.98 from October 2024. Investors who bought $1,000 worth of Newmark’s shares 5 years ago would now be looking at an investment worth $3,166.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

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