Investors Buy High Volume of Call Options on RealReal (NASDAQ:REAL)

The RealReal, Inc. (NASDAQ:REAL) was the recipient of some unusual options trading activity on Thursday. Investors acquired 8,840 call options on the stock. This is an increase of approximately 282% compared to the typical volume of 2,316 call options.

RealReal Trading Down 7.7 %

NASDAQ:REAL traded down $0.44 during midday trading on Thursday, hitting $5.29. 1,750,892 shares of the stock were exchanged, compared to its average volume of 3,411,705. The business has a 50-day moving average price of $8.63 and a two-hundred day moving average price of $5.80. RealReal has a one year low of $2.24 and a one year high of $11.38. The company has a market capitalization of $588.16 million, a price-to-earnings ratio of -4.10 and a beta of 3.00.

RealReal (NASDAQ:REAL) last issued its quarterly earnings results on Thursday, February 20th. 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 during the quarter, compared to analysts’ expectations of $162.69 million. Sell-side analysts forecast that RealReal will post -0.4 EPS for the current fiscal year.

Insider Activity at RealReal

In other news, CAO Steve Ming Lo sold 23,477 shares of the firm’s stock in a transaction dated Thursday, February 20th. The stock was sold at an average price of $6.90, for a total value of $161,991.30. Following the transaction, the chief accounting officer now directly owns 330,117 shares in the company, valued at $2,277,807.30. This trade represents a 6.64 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Gopal Ajay Madan sold 102,386 shares of the stock in a transaction on Thursday, February 20th. The shares were sold at an average price of $6.90, for a total value of $706,463.40. Following the completion of the sale, the chief financial officer now owns 1,327,198 shares of the company’s stock, valued at approximately $9,157,666.20. This represents a 7.16 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 654,761 shares of company stock valued at $5,592,306. 9.78% of the stock is owned by insiders.

Institutional Trading of RealReal

Hedge funds have recently modified their holdings of the business. Anchorage Capital Advisors L.P. acquired a new position in RealReal during the third quarter valued at $10,675,000. Woodson Capital Management LP grew its stake in RealReal by 2.9% during the 3rd 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 in the last quarter. Vanguard Group Inc. increased its holdings in shares of RealReal by 2.5% in the 4th quarter. Vanguard Group Inc. now owns 4,905,132 shares of the company’s stock valued at $53,613,000 after purchasing an additional 121,626 shares during the period. Geode Capital Management LLC increased its holdings in shares of RealReal by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 2,327,782 shares of the company’s stock valued at $25,447,000 after purchasing an additional 33,927 shares during the period. Finally, Two Sigma Advisers LP lifted its position in shares of 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 purchasing an additional 181,300 shares in the last quarter. Hedge funds and other institutional investors own 64.73% of the company’s stock.

Analysts Set New Price Targets

REAL has been the subject of a number of recent analyst reports. UBS Group lowered their price target on shares of RealReal from $10.00 to $9.00 and set a “neutral” rating for the company in a report on Wednesday, February 26th. Northland Securities boosted their target price on shares of RealReal from $6.50 to $12.50 and gave the company an “outperform” rating in a research note on Tuesday, December 17th. Finally, Wells Fargo & Company upgraded RealReal from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $4.00 to $15.00 in a research report on Monday, December 9th. Two research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $8.33.

RealReal Company Profile

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.