Bank of America Downgrades RH (NYSE:RH) to Underperform

RH (NYSE:RH) was downgraded by equities research analysts at Bank of America from a “buy” rating to an “underperform” rating in a note issued to investors on Thursday, Marketbeat reports. They presently have a $130.00 price target on the stock, down from their previous price target of $410.00. Bank of America‘s target price would indicate a potential downside of 10.57% from the stock’s previous close.

Several other brokerages have also commented on RH. Stifel Nicolaus cut their price target on RH from $500.00 to $450.00 and set a “buy” rating on the stock in a research note on Monday, March 31st. The Goldman Sachs Group upgraded shares of RH from a “sell” rating to a “neutral” rating and boosted their target price for the stock from $261.00 to $374.00 in a report on Thursday, January 30th. UBS Group lowered their price target on shares of RH from $250.00 to $235.00 and set a “neutral” rating on the stock in a report on Thursday. Citigroup reiterated a “neutral” rating and set a $200.00 price objective (down previously from $437.00) on shares of RH in a research note on Thursday. Finally, Wedbush lowered their target price on shares of RH from $500.00 to $350.00 and set an “outperform” rating for the company in a research note on Wednesday, March 26th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $293.81.

RH Trading Down 2.7 %

NYSE:RH opened at $145.37 on Thursday. The company has a market cap of $2.70 billion, a price-to-earnings ratio of 41.77, a price-to-earnings-growth ratio of 2.65 and a beta of 2.44. RH has a twelve month low of $123.03 and a twelve month high of $457.26. The stock has a fifty day simple moving average of $312.06 and a 200-day simple moving average of $348.23.

RH (NYSE:RH) last posted its quarterly earnings results on Wednesday, April 2nd. The company reported $1.58 earnings per share for the quarter, missing the consensus estimate of $1.91 by ($0.33). RH had a net margin of 2.25% and a negative return on equity of 35.72%. The company had revenue of $812.41 million for the quarter, compared to the consensus estimate of $828.21 million. During the same period in the prior year, the firm posted $0.72 EPS. The business’s revenue was up 10.0% on a year-over-year basis. As a group, equities research analysts predict that RH will post 4.39 EPS for the current fiscal year.

Insider Activity at RH

In other RH news, CAO Christina Hargarten sold 5,280 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $447.20, for a total transaction of $2,361,216.00. Following the completion of the transaction, the chief accounting officer now directly owns 484 shares of the company’s stock, valued at approximately $216,444.80. This trade represents a 91.60 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Eri Chaya sold 25,000 shares of the company’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $450.45, for a total transaction of $11,261,250.00. The disclosure for this sale can be found here. Insiders have sold a total of 66,380 shares of company stock valued at $28,922,379 in the last ninety days. Company insiders own 28.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. UMB Bank n.a. grew its position in RH by 125.8% during the 4th quarter. UMB Bank n.a. now owns 70 shares of the company’s stock worth $28,000 after purchasing an additional 39 shares during the period. Versant Capital Management Inc lifted its holdings in shares of RH by 7,000.0% in the 4th quarter. Versant Capital Management Inc now owns 71 shares of the company’s stock valued at $28,000 after buying an additional 70 shares during the period. GAMMA Investing LLC boosted its stake in shares of RH by 533.3% in the fourth quarter. GAMMA Investing LLC now owns 76 shares of the company’s stock worth $30,000 after buying an additional 64 shares during the last quarter. Sunbelt Securities Inc. grew its holdings in RH by 690.0% during the fourth quarter. Sunbelt Securities Inc. now owns 79 shares of the company’s stock worth $31,000 after acquiring an additional 69 shares during the period. Finally, Rakuten Securities Inc. raised its position in RH by 180.0% during the fourth quarter. Rakuten Securities Inc. now owns 112 shares of the company’s stock valued at $44,000 after acquiring an additional 72 shares in the last quarter. 90.17% of the stock is currently owned by institutional investors and hedge funds.

RH Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.