Real estate brokerage La Rosa Holdings soars after stock buyback announced

Shares of La Rosa Holdings, a micro-cap real estate brokerage and services company, jumped more than 25% yesterday, April 24, following the announcement of stock buyback plans. The company described that as a strategic move to boost shareholder value.

Yesterday, La Rosa Holdings jumped more than 25% on the Nasdaq to close at $0.150 per share before giving back 5% in after-hours trading to $0.145 per share.

Earlier in the day yesterday, the company announced plans to repurchase up to $500,000 of outstanding shares. This is a strategic move to increase the share price, which, according to founder and CEO Joseph La Rosa, currently does not reflect the underlying value and momentum of the company.

The stock is down over 80% for the year to date and off more than 90% over the last 12 months. The Nasdaq has already notified La Rosa of noncompliance with its minimum listing requirement of $1 per share. It initially gave the company six months to address the issue before extending that deadline by another six months in April. La Rosa believes the current share price presents a compelling investment opportunity.

La Rosa operates as a real estate brokerage for both residential and commercial properties, offering services such as mortgage and insurance processing as well.

The company says it has been revamping itself in recent months. Last year, it acquired at least 12 real estate brokerage franchisees, in addition to peer Nona Title Agency, which enabled it to offer title insurance services. It also restructured its bond debt. These efforts seem to have paid off, as La Rosa reported a 119% increase in revenue in 2024 to $69.4 million and a 110% jump in gross profit to $6.0 million.

This year, La Rosa has announced the implementation of the AI-powered platform Lofty to boost agent productivity and accelerate business growth, the full redemption and extinguishment of outstanding warrants, and a private placement worth almost $5 million.