Traders Buy High Volume of Call Options on RH (NYSE:RH)

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

Insider Activity at RH

In other RH news, CAO Christina Hargarten sold 5,280 shares of the business’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $447.20, for a total value of $2,361,216.00. Following the completion of the transaction, the chief accounting officer now owns 484 shares in the company, valued at $216,444.80. The trade was a 91.60 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Eri Chaya sold 25,000 shares of the stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $450.45, for a total value of $11,261,250.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,880 shares of company stock worth $24,550,754. Corporate insiders own 28.10% of the company’s stock.

Hedge Funds Weigh In On RH

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. UMB Bank n.a. raised its holdings in shares of RH by 125.8% during the 4th quarter. UMB Bank n.a. now owns 70 shares of the company’s stock valued at $28,000 after purchasing an additional 39 shares in the last quarter. Versant Capital Management Inc grew its holdings in shares of RH by 7,000.0% during the 4th quarter. Versant Capital Management Inc now owns 71 shares of the company’s stock worth $28,000 after purchasing an additional 70 shares in the last quarter. GAMMA Investing LLC lifted its stake in RH by 533.3% during the fourth quarter. GAMMA Investing LLC now owns 76 shares of the company’s stock worth $30,000 after purchasing an additional 64 shares during the period. Sunbelt Securities Inc. grew its position in RH by 690.0% in the fourth quarter. Sunbelt Securities Inc. now owns 79 shares of the company’s stock valued at $31,000 after acquiring an additional 69 shares during the period. Finally, Rakuten Securities Inc. boosted its position in RH by 180.0% in the fourth quarter. Rakuten Securities Inc. now owns 112 shares of the company’s stock valued at $44,000 after buying an additional 72 shares in the last quarter. 90.17% of the stock is currently owned by hedge funds and other institutional investors.

RH Trading Up 14.3 %

RH traded up $20.83 during trading hours on Monday, hitting $166.49. The company’s stock had a trading volume of 3,916,672 shares, compared to its average volume of 846,049. RH has a fifty-two week low of $123.03 and a fifty-two week high of $457.26. The firm has a market capitalization of $3.10 billion, a PE ratio of 47.76, a PEG ratio of 2.65 and a beta of 2.44. The company has a 50-day simple moving average of $312.06 and a 200 day simple moving average of $348.44.

RH (NYSE:RH) last posted its quarterly 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). The company had revenue of $812.41 million during the quarter, compared to the consensus estimate of $828.21 million. RH had a net margin of 2.25% and a negative return on equity of 35.72%. RH’s quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.72 EPS. Research analysts expect that RH will post 4.39 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on RH shares. Morgan Stanley lowered their price target on RH from $530.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday. StockNews.com downgraded shares of RH from a “hold” rating to a “sell” rating in a research report on Wednesday, March 19th. Citigroup restated a “neutral” rating and set a $200.00 target price (down previously from $437.00) on shares of RH in a research report on Thursday. Bank of America lowered RH from a “buy” rating to an “underperform” rating and decreased their price target for the stock from $410.00 to $130.00 in a research note on Thursday. Finally, Barclays dropped their price target on RH from $515.00 to $436.00 and set an “overweight” rating for the company in a research note on Thursday. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, RH has an average rating of “Hold” and an average target price of $287.69.

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.