RealReal (NASDAQ:REAL) Stock Price Down 13.2% After Earnings Miss

Shares of The RealReal, Inc. (NASDAQ:REAL) traded down 13.2% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $6.99 and last traded at $6.91. 1,440,690 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 3,137,537 shares. The stock had previously closed at $7.96.

The company reported ($0.62) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.52). The company had revenue of $164.00 million for the quarter, compared to analyst estimates of $162.69 million.

Analyst Upgrades and Downgrades

REAL has been the subject of a number of recent analyst reports. Wells Fargo & Company upgraded shares of RealReal from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $4.00 to $15.00 in a research report on Monday, December 9th. UBS Group boosted their price target on shares of RealReal from $3.00 to $3.25 and gave the company a “neutral” rating in a research report on Tuesday, November 5th. Finally, Northland Securities boosted their price target on shares of RealReal from $6.50 to $12.50 and gave the company an “outperform” rating in a research report on Tuesday, December 17th. Two equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, RealReal has a consensus rating of “Moderate Buy” and an average price target of $7.38.

Insider Buying and Selling

In related news, CAO Steve Ming Lo sold 96,666 shares of the company’s stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $6.10, for a total value of $589,662.60. Following the completion of the transaction, the chief accounting officer now directly owns 391,525 shares in the company, valued at approximately $2,388,302.50. The trade was a 19.80 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO John E. Koryl sold 396,478 shares of the company’s stock in a transaction dated Monday, January 6th. The shares were sold at an average price of $9.61, for a total transaction of $3,810,153.58. The disclosure for this sale can be found here. 9.78% of the stock is owned by company insiders.

Hedge Funds Weigh In On RealReal

Several hedge funds and other institutional investors have recently modified their holdings of the company. Anchorage Capital Advisors L.P. bought a new position in shares of RealReal during the third quarter valued at about $10,675,000. Woodson Capital Management LP raised its stake in shares of RealReal by 2.9% during the third quarter. Woodson Capital Management LP now owns 5,400,000 shares of the company’s stock valued at $16,956,000 after acquiring an additional 150,000 shares during the last quarter. Vanguard Group Inc. raised its stake in RealReal by 2.5% in the fourth quarter. Vanguard Group Inc. now owns 4,905,132 shares of the company’s stock worth $53,613,000 after buying an additional 121,626 shares in the last quarter. Geode Capital Management LLC raised its stake in RealReal by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 2,327,782 shares of the company’s stock worth $25,447,000 after buying an additional 33,927 shares in the last quarter. Finally, Two Sigma Advisers LP raised its stake in RealReal by 8.7% in the fourth quarter. Two Sigma Advisers LP now owns 2,275,100 shares of the company’s stock worth $24,867,000 after buying an additional 181,300 shares in the last quarter. 64.73% of the stock is owned by institutional investors.

RealReal Price Performance

The company has a market capitalization of $708.60 million, a P/E ratio of -7.34 and a beta of 2.83. The stock’s 50 day moving average is $9.07 and its 200-day moving average is $5.56.

About RealReal

The RealReal, Inc operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.