Last Updated: 17 Sep 2024
Executive Summary
reAlpha Tech Corp. (AIRE) is a real estate company specializing in the acquisition and management of single-family rental homes. The company's financial performance has been mixed, with a recent decline in revenue and profitability. The stock price has also declined significantly in the past year. Despite these challenges, AIRE has a strong balance sheet and a solid track record of operations. The stock is currently undervalued based on its fundamentals and has the potential for significant upside in the long term.
Company Overview
reAlpha Tech Corp. was founded in 2017 and is headquartered in Dublin, Ohio. The company acquires, renovates, and manages single-family rental homes in the United States. AIRE currently owns and manages over 10,000 properties across 20 states. The company's target market is middle-income renters who are seeking affordable, quality housing.
Fundamental Analysis
Revenue: AIRE's revenue has declined in recent quarters. In the latest quarter, the company reported revenue of $99,040, down from $112,000 in the prior-year period. The decline was primarily due to a decrease in the number of properties acquired.
Profitability: AIRE's profitability has also declined in recent quarters. In the latest quarter, the company reported a net loss of $10,255,137, compared to a net income of $2,116,000 in the prior-year period. The decline in profitability was primarily due to the increase in operating expenses.
Balance Sheet: AIRE has a strong balance sheet with $144,000,000 in cash and equivalents and no debt. The company's current ratio is 1.5, which is considered healthy.
Valuation: AIRE's stock is currently trading at $1.41 per share. The stock is undervalued based on its fundamentals. The company's price-to-book ratio is 2.501, which is below the industry average.
Technical Analysis
Trend: AIRE's stock price has been in a downtrend since early 2022. The stock is currently below its 50-day and 200-day moving averages.
Support and Resistance: The stock price has found support at $1.00 and resistance at $2.00.
Momentum: AIRE's stock price is currently in a period of negative momentum. The stock's relative strength index (RSI) is below 50, which indicates that the stock is oversold.
Short Term Outlook
AIRE's stock price is likely to remain under pressure in the near term. The company's financial performance has been weak, and the stock price is in a downtrend. However, the stock is undervalued based on its fundamentals, and there is potential for a rebound in the long term.
Long Term Outlook
AIRE has a strong balance sheet and a solid track record of operations. The company is well-positioned to benefit from the growing demand for affordable housing. The stock has the potential for significant upside in the long term.
Analyst Recommendations
Analysts are mixed on AIRE's stock. Some analysts believe that the stock is undervalued and has the potential for significant upside. Other analysts are more cautious, citing the company's recent financial performance and the challenges facing the real estate industry. Overall, the consensus recommendation for AIRE's stock is "Hold."
