RH (NYSE:RH) Trading Down 5.3% on Analyst Downgrade

RH (NYSE:RH) shares were down 5.3% during mid-day trading on Tuesday after Stifel Nicolaus lowered their price target on the stock from $450.00 to $390.00. Stifel Nicolaus currently has a buy rating on the stock. RH traded as low as $155.28 and last traded at $155.72. Approximately 1,518,314 shares were traded during trading, an increase of 77% from the average daily volume of 859,033 shares. The stock had previously closed at $164.48.

Other equities analysts have also issued research reports about the company. The Goldman Sachs Group set a $276.00 target price on RH in a research note on Thursday, April 3rd. Citigroup restated a “neutral” rating and issued a $200.00 price objective (down from $437.00) on shares of RH in a research note on Thursday, April 3rd. Telsey Advisory Group decreased their target price on RH from $420.00 to $280.00 and set an “outperform” rating for the company in a report on Thursday, April 3rd. Loop Capital cut their price target on shares of RH from $450.00 to $190.00 and set a “hold” rating on the stock in a report on Friday, April 4th. Finally, UBS Group decreased their price objective on shares of RH from $250.00 to $235.00 and set a “neutral” rating for the company in a research note on Thursday, April 3rd. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $283.94.

Insider Activity

In other news, insider Edward T. Lee sold 600 shares of the stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $446.73, for a total transaction of $268,038.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Christina Hargarten sold 5,280 shares of RH stock in a transaction 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 sale, the chief accounting officer now directly owns 484 shares in the company, valued at $216,444.80. This represents a 91.60 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 55,880 shares of company stock worth $24,550,754 in the last ninety days. Company insiders own 28.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. NBC Securities Inc. purchased a new stake in RH during the 1st quarter worth approximately $45,000. Rhumbline Advisers boosted its stake in shares of RH by 1.2% in the first quarter. Rhumbline Advisers now owns 40,787 shares of the company’s stock worth $9,561,000 after acquiring an additional 489 shares during the last quarter. GAMMA Investing LLC increased its position in shares of RH by 57,577.6% during the first quarter. GAMMA Investing LLC now owns 43,835 shares of the company’s stock worth $10,275,000 after purchasing an additional 43,759 shares in the last quarter. Wellington Management Group LLP raised its stake in RH by 14.0% in the 4th quarter. Wellington Management Group LLP now owns 44,880 shares of the company’s stock valued at $17,664,000 after purchasing an additional 5,506 shares during the last quarter. Finally, 111 Capital purchased a new position in RH in the 4th quarter valued at $211,000. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Stock Performance

The company has a market cap of $3.56 billion, a price-to-earnings ratio of 54.67, a PEG ratio of 2.65 and a beta of 2.44. The firm’s 50 day simple moving average is $286.67 and its 200-day simple moving average is $342.22.

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). The business had revenue of $812.41 million during the quarter, compared to analysts’ expectations of $828.21 million. RH had a negative return on equity of 35.72% and a net margin of 2.25%. The business’s quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.72 earnings per share. As a group, sell-side analysts expect that RH will post 4.39 EPS for the current fiscal year.

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.