RH Sees Unusually High Options Volume (NYSE:RH)

RH (NYSE:RH) was the target of some unusual options trading activity on Monday. Stock investors purchased 13,091 call options on the company. This represents an increase of approximately 69% compared to the average volume of 7,733 call options.

RH Price Performance

RH stock opened at $163.99 on Tuesday. RH has a fifty-two week low of $123.03 and a fifty-two week high of $457.26. The firm’s 50 day simple moving average is $307.12 and its 200-day simple moving average is $347.14. The company has a market cap of $3.05 billion, a P/E ratio of 47.12, a price-to-earnings-growth ratio of 2.65 and a beta of 2.44.

RH (NYSE:RH) last announced its earnings results on Wednesday, April 2nd. The company reported $1.58 earnings per share (EPS) 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 firm had revenue of $812.41 million for the quarter, compared to analyst estimates of $828.21 million. During the same period last year, the firm earned $0.72 earnings per share. RH’s revenue for the quarter was up 10.0% compared to the same quarter last year. On average, analysts expect that RH will post 4.39 EPS for the current fiscal year.

Analyst Ratings Changes

A number of brokerages recently issued reports on RH. Wells Fargo & Company decreased their price objective on RH from $375.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, April 3rd. Guggenheim cut their price objective on shares of RH from $500.00 to $300.00 and set a “buy” rating on the stock in a research note on Thursday, April 3rd. Telsey Advisory Group decreased their target price on shares of RH from $420.00 to $280.00 and set an “outperform” rating for the company in a research report on Thursday, April 3rd. UBS Group dropped their price target on shares of RH from $250.00 to $235.00 and set a “neutral” rating on the stock in a research report on Thursday, April 3rd. Finally, Citigroup reissued a “neutral” rating and set a $200.00 target price (down previously from $437.00) on shares of RH in a report on Thursday, April 3rd. Three research 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. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $283.94.

Insider Activity

In related news, insider Eri Chaya sold 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 14th. The stock was sold at an average price of $426.41, for a total transaction of $10,660,250.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Edward T. Lee sold 600 shares of the stock in a transaction on Friday, January 17th. The stock was sold at an average price of $446.73, for a total value of $268,038.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 55,880 shares of company stock worth $24,550,754. 28.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On RH

A number of large investors have recently made changes to their positions in RH. GAMMA Investing LLC grew its position in RH by 57,577.6% during the first quarter. GAMMA Investing LLC now owns 43,835 shares of the company’s stock valued at $10,275,000 after purchasing an additional 43,759 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of RH by 14.0% during the fourth quarter. Wellington Management Group LLP now owns 44,880 shares of the company’s stock worth $17,664,000 after acquiring an additional 5,506 shares in the last quarter. 111 Capital acquired a new stake in RH during the fourth quarter valued at $211,000. PKO Investment Management Joint Stock Co purchased a new position in RH in the fourth quarter valued at about $590,000. Finally, Copia Wealth Management purchased a new position in RH in the fourth quarter valued at about $106,000. Institutional investors and hedge funds own 90.17% of the company’s stock.

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.