RH (NYSE:RH) Shares Down 8.8% – Should You Sell?

RH (NYSE:RH)’s share price dropped 8.8% during mid-day trading on Tuesday . The company traded as low as $278.54 and last traded at $280.33. Approximately 540,437 shares were traded during trading, a decline of 6% from the average daily volume of 576,118 shares. The stock had previously closed at $307.23.

Wall Street Analysts Forecast Growth

RH has been the topic of several analyst reports. The Goldman Sachs Group upgraded RH from a “sell” rating to a “neutral” rating and increased their price target for the company from $261.00 to $374.00 in a report on Thursday, January 30th. Stifel Nicolaus raised their target price on shares of RH from $420.00 to $500.00 and gave the company a “buy” rating in a research note on Monday, December 16th. Wells Fargo & Company boosted their target price on shares of RH from $425.00 to $500.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Robert W. Baird raised their price target on RH from $300.00 to $400.00 and gave the company a “neutral” rating in a research report on Friday, December 13th. Finally, Loop Capital lifted their price objective on RH from $320.00 to $450.00 and gave the stock a “hold” rating in a research note on Monday, December 16th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, RH currently has a consensus rating of “Moderate Buy” and an average price target of $431.60.

RH Price Performance

The firm has a market capitalization of $5.43 billion, a price-to-earnings ratio of 83.81, a price-to-earnings-growth ratio of 2.65 and a beta of 2.42. The business has a 50 day moving average of $398.49 and a 200 day moving average of $354.28.

RH (NYSE:RH) last announced its quarterly earnings data on Thursday, December 12th. The company reported $2.48 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.19). The business had revenue of $811.73 million during the quarter, compared to analyst estimates of $812.19 million. RH had a net margin of 2.25% and a negative return on equity of 35.72%. The company’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.42) EPS. On average, sell-side analysts forecast that RH will post 4.39 EPS for the current fiscal year.

Insiders Place Their Bets

In other RH news, Director Keith Belling sold 500 shares of the stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $415.00, for a total transaction of $207,500.00. Following the completion of the transaction, the director now directly owns 5,470 shares in the company, valued at $2,270,050. This represents a 8.38 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Eri Chaya sold 25,000 shares of the business’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $450.45, for a total transaction of $11,261,250.00. The disclosure for this sale can be found here. Insiders sold a total of 66,880 shares of company stock worth $29,129,879 over the last quarter. Company insiders own 28.10% of the company’s stock.

Institutional Trading of RH

Several large investors have recently added to or reduced their stakes in RH. FMR LLC boosted its holdings in shares of RH by 0.7% in the 4th quarter. FMR LLC now owns 2,790,314 shares of the company’s stock worth $1,098,240,000 after acquiring an additional 18,040 shares in the last quarter. Vanguard Group Inc. raised its position in RH by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 1,402,010 shares of the company’s stock valued at $551,817,000 after purchasing an additional 18,389 shares during the last quarter. Anomaly Capital Management LP boosted its stake in RH by 9.6% in the fourth quarter. Anomaly Capital Management LP now owns 481,111 shares of the company’s stock worth $189,360,000 after purchasing an additional 41,986 shares in the last quarter. Alliancebernstein L.P. grew its holdings in shares of RH by 1,960.8% during the fourth quarter. Alliancebernstein L.P. now owns 363,698 shares of the company’s stock worth $143,148,000 after purchasing an additional 346,050 shares during the last quarter. Finally, Senvest Management LLC increased its stake in shares of RH by 35.6% in the fourth quarter. Senvest Management LLC now owns 315,368 shares of the company’s stock valued at $124,126,000 after buying an additional 82,742 shares in the last quarter. 90.17% of the stock is owned by institutional investors.

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.