Rightmove (LON:RMV) Announces Earnings Results

Rightmove (LON:RMV) issued its earnings results on Friday. The company reported GBX 15.60 EPS for the quarter, Digital Look Earnings reports. Rightmove had a return on equity of 264.68% and a net margin of 51.06%.

Here are the key takeaways from Rightmove’s conference call:

• H1 revenue rose 7% and underlying EPS increased 6%, supported by ARPA growth, agency membership gains, and contributions from strategic growth areas.
• The core estate agency business delivered 9% revenue growth, record retention in more than a decade, and continued uptake of premium packages and products such as Online Agent Valuation.
• New homes market activity weakened materially, with development membership down 121 in H1 and management expecting development numbers to fall 6%-10% for the full year; group revenue guidance was reduced to 6%-8%.
• Strategic growth areas remain on track for 20%-30% revenue growth in 2026, led by rental services revenue growth of 67% and commercial property growth of 13% in H1.
• Rightmove announced plans to return more than £400 million to shareholders over the next 12 months, including over £330 million of anticipated buybacks, while continuing significant investment in its AI-enabled platform and products.

Rightmove Stock Performance

Shares of LON RMV traded up GBX 7.80 during mid-day trading on Friday, hitting GBX 464.60. The company had a trading volume of 5,267,535 shares, compared to its average volume of 34,621,227. Rightmove has a 12 month low of GBX 391.40 and a 12 month high of GBX 827. The stock has a market cap of £3.46 billion, a price-to-earnings ratio of 16.59, a PEG ratio of 2.58 and a beta of 0.90. The company has a debt-to-equity ratio of 8.73, a current ratio of 1.89 and a quick ratio of 2.55. The firm’s 50 day simple moving average is GBX 439.33 and its two-hundred day simple moving average is GBX 444.12.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on RMV. JPMorgan Chase & Co. dropped their price target on Rightmove from GBX 489 to GBX 404 and set an “underweight” rating on the stock in a research report on Tuesday, June 16th. Jefferies Financial Group reissued an “underperform” rating and set a GBX 465 target price on shares of Rightmove in a report on Friday. UBS Group restated a “neutral” rating and issued a GBX 481 price target on shares of Rightmove in a research report on Tuesday, May 5th. Finally, Citigroup lowered their price objective on shares of Rightmove from GBX 520 to GBX 455 and set a “neutral” rating for the company in a research report on Thursday, April 9th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Rightmove presently has an average rating of “Hold” and a consensus price target of GBX 607.14.

Insiders Place Their Bets

In related news, insider Lorna Tilbian bought 3,600 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were purchased at an average cost of GBX 403 per share, with a total value of £14,508. Also, insider Amanda James bought 6,016 shares of the company’s stock in a transaction on Thursday, May 21st. The stock was bought at an average cost of GBX 413 per share, for a total transaction of £24,846.08. 0.37% of the stock is owned by corporate insiders.

About Rightmove

Rightmove plc, together with its subsidiaries, operates online digital property advertising and information portals in the United Kingdom and internationally. The company operates through Agency, New Homes, and Other segments. The Agency segment provides property resale and letting advertising services on its platforms. The segment also offers tenant references and rent guarantee insurance services to landlords. The New Homes segment provides property advertising services to new home developers and housing associations on its platforms.