RH (NYSE:RH) Stock Price Down 10.2% – What’s Next?

RH (NYSE:RH)’s stock price dropped 10.2% during mid-day trading on Monday . The company traded as low as $236.91 and last traded at $235.57. Approximately 328,811 shares traded hands during trading, a decline of 47% from the average daily volume of 617,832 shares. The stock had previously closed at $262.43.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on RH shares. Guggenheim lifted their price target on shares of RH from $425.00 to $550.00 and gave the company a “buy” rating in a research report on Friday, December 13th. Barclays upgraded RH from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $383.00 to $515.00 in a research report on Wednesday, January 8th. Telsey Advisory Group upgraded RH from a “market perform” rating to an “outperform” rating and boosted their price objective for the company from $485.00 to $500.00 in a report on Thursday, December 19th. The Goldman Sachs Group upgraded RH from a “sell” rating to a “neutral” rating and raised their target price for the company from $261.00 to $374.00 in a report on Thursday, January 30th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $500.00 target price on shares of RH in a research report on Tuesday, February 18th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat, RH currently has a consensus rating of “Moderate Buy” and a consensus price target of $431.60.

RH Trading Down 11.1 %

The firm’s fifty day simple moving average is $388.33 and its 200 day simple moving average is $354.64. The company has a market cap of $4.34 billion, a price-to-earnings ratio of 67.07, a PEG ratio of 2.65 and a beta of 2.50.

RH (NYSE:RH) last issued its earnings results on Thursday, December 12th. The company reported $2.48 EPS for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.19). RH had a negative return on equity of 35.72% and a net margin of 2.25%. The firm had revenue of $811.73 million for the quarter, compared to analyst estimates of $812.19 million. During the same quarter in the previous year, the firm posted ($0.42) EPS. The business’s revenue for the quarter was up 8.1% on a year-over-year basis. As a group, sell-side analysts expect that RH will post 4.39 EPS for the current year.

Insider Activity

In related news, insider Edward T. Lee sold 600 shares of the business’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $446.73, for a total value of $268,038.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Eri Chaya sold 10,000 shares of the firm’s stock in a transaction dated Monday, January 6th. The stock was sold at an average price of $416.27, for a total value of $4,162,700.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 66,880 shares of company stock worth $29,129,879. 28.10% of the stock is currently owned by insiders.

Institutional Trading of RH

Several institutional investors and hedge funds have recently made changes to their positions in the company. Virtu Financial LLC acquired a new position in RH during the third quarter worth approximately $4,268,000. Lisanti Capital Growth LLC purchased a new position in shares of RH during the third quarter worth approximately $3,251,000. Invst LLC acquired a new position in shares of RH in the 3rd quarter valued at $752,000. Cerity Partners LLC raised its position in RH by 139.7% in the 3rd quarter. Cerity Partners LLC now owns 2,584 shares of the company’s stock valued at $864,000 after purchasing an additional 1,506 shares during the last quarter. Finally, L.M. Kohn & Company acquired a new stake in RH during the 4th quarter worth $289,000. 90.17% of the stock is owned by hedge funds and other institutional investors.

About RH

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.