Compass CEO Robert Reffkin is continuing to cash in his chips.
The brokerage’s founder notified the Securities and Exchange Commission on Monday of his plan to sell 2 million shares for an estimated market value of $12.8 million, according to a filing with the agency.
The planned sale comes on the heels of another successful earnings report for Compass. In the third quarter, the company posted a net loss of $1.7 million — a $37.7 million bump from last year — and generated $32.8 million in free cash flow for its third straight cash-positive quarter.
The brokerage’s stock closed 14 percent higher, at $6.35, the day following its earnings announcement.
Last quarter, Reffkin sold 3 million shares under his name and another 500,000 under a trust in his name for over $17 million, according to the filing. That sell-off came after Compass reported a net income of $20.7 million for its first profitable quarter in the company’s history.
Both sales have come as part of a 10b51 stock sale plan, which allows company insiders to plan trades at predetermined prices and times to avoid accusations of insider trading.
Reffkin currently owns almost 25 million shares in company stock making him its fifth-largest shareholder, according to Simply Wall St. SoftBank, the Vanguard Group, Fidelity Investments and Blackrock make up the four largest shareholders, accounting for almost 39 percent of the company’s ownership.
Reffkin’s plan was enacted on May 10, when Compass’ stock closed at $3.90. At the time of publication, its stock was trading at $6.66.
A spokesperson for Compass called the sale a “routine step.”
In an internal email announcing his summer stock sale, Reffkin told employees that his “dedication to Compass hasn’t wavered.”
“I will still be Compass’ largest individual shareholder and very much believe in the future upside of the value of Compass stock,” he wrote.
Compass has reported some of its best financial results as a company this year since going public in 2021, despite another down year for the residential real estate industry.
In the third quarter, the brokerage grew revenue by almost 12 percent to $1.5 billion and transactions by over 16 percent year-over-year, while transactions across the market declined by 1.9 percent.
The company expects to be cash flow positive for the year and to hit a full-year adjusted EBITDA of over $100 million.
“This is a remarkable achievement, especially given the challenging market backdrop with existing home sales at three-decade lows,” Reffkin said on the company’s earnings call.
Read more
Residential
National
Robert Reffkin is selling 3M shares of Compass stock
Residential
National
Can Compass keep the wins coming?