Newmark Group, Inc. has announced the repurchase of approximately 11 million shares of its Class A common stock from Howard W. Lutnick, the United States Secretary of Commerce and former executive chairman of the company. The aggregate purchase price for the shares is $127,027,077, based on the closing price of $11.58 per share on May 16, 2025. Following this transaction, Newmark will have $244.9 million remaining under its existing stock repurchase authorization.
Mr. Lutnick has also agreed to transfer his ownership in Cantor Fitzgerald to trusts for the benefit of his adult children, with Brandon G. Lutnick, the CEO of Cantor Fitzgerald, serving as the controlling trustee of such trusts. The sale of 10,839,674 shares closed on the announcement date, and the sale of 129,849 shares held in retirement accounts will close immediately after the Cantor Fitzgerald transactions.
As a result of these transactions, Mr. Lutnick has divested his ownership, voting, and economic interests in Newmark, in compliance with his U.S. government ethics agreement. It's worth noting that Cantor Fitzgerald will continue to be Newmark's largest and controlling shareholder.
Newmark's Chief Financial Officer, Michael Rispoli, highlighted that the repurchase presented a unique opportunity to efficiently acquire a substantial number of shares at a favorable price. The company expects to continue investing in its growth and returning capital to shareholders through repurchases over time, given its anticipated strong cash generation.
For the twelve months ending March 31, 2025, Newmark generated revenues of over $2.8 billion and operated from 165 offices with approximately 8,100 professionals across four continents. The company's comprehensive suite of services and products is tailored to clients across the industry spectrum, from owners to occupiers, investors to founders, and startups to blue-chip companies. As a result of these announcements, the company's shares have moved 0.34% on the market, and are now trading at a price of $11.62. For the full picture, make sure to review NEWMARK GROUP, INC.'s 8-K report.
