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NEW YORK - Newmark Group, Inc. (NASDAQ:NMRK), a prominent commercial real estate advisory firm, has repurchased a significant portion of its shares from Howard W. Lutnick, the current United States Secretary of Commerce and the company’s former Executive Chairman. The transaction involves the buyback of 10,969,523 Class A common shares at a total cost of approximately $127 million, priced at $11.58 per share, based on the closing price as of Monday, May 16, 2025.
This repurchase is part of Newmark’s existing stock buyback program, which will retain about $244.9 million for future transactions post-purchase. InvestingPro data shows that management has been consistently aggressive with share buybacks, while the company maintains strong revenue growth of 14.48% over the last twelve months. The move aligns with Mr. Lutnick’s obligations under a U.S. government ethics agreement following his appointment as Secretary of Commerce. The bulk of the shares, amounting to 10,839,674, will transfer ownership today, with the remaining 129,849 shares, currently held in retirement accounts, to follow after regulatory approvals are secured for separate transactions involving Cantor Fitzgerald.
In a related development, Lutnick has arranged for the transfer of his ownership interests in Cantor Fitzgerald into trusts for the benefit of his adult children, including Kyle S. Lutnick and Brandon G. Lutnick, who hold executive positions within the firm. These transactions will effectively divest Lutnick of his economic benefits in Newmark from May 16, 2025, onward, in compliance with his ethics agreement.
Michael Rispoli, Newmark’s Chief Financial Officer, commented on the share repurchase, highlighting the opportunity to acquire shares at a favorable price and the company’s intention to continue investing in its growth while returning capital to shareholders over time.
Despite the divestiture, Cantor Fitzgerald is set to remain the largest and controlling shareholder of Newmark. Further details on the divestiture transactions will be available in the Forms 8-K and 13D to be filed with the SEC.
This announcement is based on a press release statement from Newmark Group, Inc.
In other recent news, Newmark Group reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an adjusted earnings per share of $0.21, compared to the forecasted $0.19. The company’s revenue reached $665.5 million, exceeding the anticipated $613.2 million, marking a 21.8% year-over-year increase. Despite these strong financial results, the company noted macroeconomic uncertainties and a slowing CMBS market impacting investor sentiment. Meanwhile, Zscaler has secured a significant 301,163-square-foot sublease in Santa Clara, California, for its new global headquarters, marking the largest new office lease in Silicon Valley since 2023. The new headquarters are expected to open in the summer of 2026, supporting Zscaler’s continued expansion and innovation. Newmark facilitated this lease, emphasizing the strategic importance of the location for Zscaler’s growth. These developments highlight ongoing strategic moves and financial performance within the companies.
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