The REA Group Ltd (ASX: REA) share price fell 3.6% to an intraday low of $159.77 on Tuesday.
There was no price-sensitive news pertaining to this ASX 200 communications share today.
So, why the tumble from yesterday's closing value of $165.80 apiece?
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REA share price declines amid red day for market
The S&P/ASX 200 Index (ASX: XJO) took a breather on Tuesday as investors considered how the war in Iran might play out.
The ASX 200 fell 1.34%, and 149 stocks also finished in the red. That included REA shares at $161.58 apiece, down 2.55%.
But there was another factor at play — it's also ex-dividend day for REA shares.
It's typical for a company's share price to fall on ex-dividend day because the stock is no longer trading with the next payment attached.
That means it's inherently less valuable.
Earnings season came to a close on Friday, and REA is among 35 stocks going ex-dividend this week.
REA shares will pay an interim dividend of $1.24 per share, fully franked, for the 1H FY26 period.
That's 13% higher than last year's interim dividend.
Re-cap on 1H FY26 results
The owner of realestate.com.au reported core operations revenue of $916 million for the half, up 5% year over year (yoy).
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) (excluding associates) came in at $569 million, up 6% yoy.
The net profit after tax (NPAT) from core operations was $341 million, up 9%.
REA also announced an on-market share buyback of up to $200 million worth of shares, which is now underway.
REA Group CEO Cameron McIntyre said:
REA Group's first half performance was underpinned by strong double-digit yield growth in our core residential business. Our focus on richer, more immersive consumer experiences supported record audience and strong engagement.
Investors were displeased with the earnings report, and the REA share price fell heavily on the day of the news.
Are REA shares a buy?
The REA share price has fallen 34% over the past 12 months.
After reviewing REA's 1H FY26 report, UBS reiterated its buy rating with a 12-month share price target of $218.90.
Bell Potter retained a buy rating with a target of $211.
JP Morgan kept its buy rating as well, but reduced its price target from $225 to $215.
Morgans upgraded its rating to buy and shaved its price target down from $236 to $230.
Jeffries also upgraded REA to buy with a share price target of $203.
Ord Minnett maintained a hold rating on REA with a share price target of $215.
Macquarie also has a hold rating on REA shares. The broker lowered its price target from $210 to $200 after the 1H FY26 report.
Jarden reiterated its hold rating and slashed its target from $196 to $177.
