StockNews.com Downgrades RH (NYSE:RH) to Sell

StockNews.com lowered shares of RH (NYSE:RH) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Several other analysts have also recently commented on RH. Robert W. Baird lifted their price objective on shares of RH from $300.00 to $400.00 and gave the company a “neutral” rating in a research note on Friday, December 13th. Barclays lowered their price target on shares of RH from $340.00 to $320.00 and set an “equal weight” rating on the stock in a report on Monday, September 16th. Telsey Advisory Group upgraded RH from a “market perform” rating to an “outperform” rating and lifted their price objective for the company from $485.00 to $500.00 in a research note on Thursday, December 19th. TD Cowen upped their target price on RH from $325.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Finally, Loop Capital lifted their price target on RH from $320.00 to $450.00 and gave the company a “hold” rating in a research report on Monday, December 16th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $402.40.

RH Trading Up 2.5 %

NYSE RH opened at $408.23 on Friday. The stock has a market cap of $7.59 billion, a P/E ratio of 117.31, a P/E/G ratio of 2.73 and a beta of 2.44. RH has a 12-month low of $212.43 and a 12-month high of $457.26. The company has a fifty day simple moving average of $357.27 and a two-hundred day simple moving average of $303.66.

RH (NYSE:RH) last posted its quarterly earnings results on Thursday, December 12th. The company reported $2.48 earnings per share for the quarter, missing the consensus estimate of $2.67 by ($0.19). RH had a net margin of 2.25% and a negative return on equity of 32.76%. The firm had revenue of $811.73 million for the quarter, compared to analysts’ expectations of $812.19 million. During the same quarter in the previous year, the firm posted ($0.42) EPS. The firm’s revenue for the quarter was up 8.1% compared to the same quarter last year. As a group, sell-side analysts forecast that RH will post 5.63 earnings per share for the current year.

Insider Activity at RH

In other RH news, insider Edward T. Lee sold 2,000 shares of the stock in a transaction dated Friday, October 18th. The shares were sold at an average price of $353.57, for a total value of $707,140.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Keith Belling sold 500 shares of the business’s stock in a transaction that occurred on Tuesday, December 17th. The stock was sold at an average price of $415.00, for a total value of $207,500.00. Following the transaction, the director now owns 5,470 shares in the company, valued at approximately $2,270,050. This represents a 8.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 28.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Anomaly Capital Management LP increased its stake in RH by 503.6% during the second quarter. Anomaly Capital Management LP now owns 349,227 shares of the company’s stock worth $85,365,000 after acquiring an additional 291,368 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of RH by 18.0% during the 2nd quarter. Dimensional Fund Advisors LP now owns 270,993 shares of the company’s stock worth $66,239,000 after purchasing an additional 41,242 shares during the last quarter. Allspring Global Investments Holdings LLC raised its holdings in RH by 8.2% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 245,810 shares of the company’s stock valued at $82,206,000 after buying an additional 18,563 shares during the period. Charles Schwab Investment Management Inc. lifted its position in RH by 26.4% in the third quarter. Charles Schwab Investment Management Inc. now owns 184,834 shares of the company’s stock valued at $61,814,000 after buying an additional 38,572 shares during the last quarter. Finally, Marshall Wace LLP boosted its stake in RH by 58.6% during the second quarter. Marshall Wace LLP now owns 174,324 shares of the company’s stock worth $42,612,000 after buying an additional 64,423 shares during the period. Hedge funds and other institutional investors own 90.17% of the company’s stock.

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.