RealReal (NASDAQ:REAL) Shares Gap Down – Should You Sell?

The RealReal, Inc. (NASDAQ:REAL) gapped down before the market opened on Monday . The stock had previously closed at $8.37, but opened at $8.20. RealReal shares last traded at $7.97, with a volume of 1,098,085 shares traded.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Northland Securities lifted their price objective on shares of RealReal from $6.50 to $12.50 and gave the stock an “outperform” rating in a research report on Tuesday, December 17th. Wells Fargo & Company upgraded RealReal from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $4.00 to $15.00 in a research note on Monday, December 9th. Finally, UBS Group increased their price objective on RealReal from $3.00 to $3.25 and gave the company a “neutral” rating in a report on Tuesday, November 5th. Two investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $7.38.

RealReal Stock Performance

The stock’s 50 day moving average is $9.07 and its 200 day moving average is $5.32.

Insiders Place Their Bets

In other news, CEO John E. Koryl sold 396,478 shares of the company’s stock in a transaction dated Monday, January 6th. The stock was sold at an average price of $9.61, for a total transaction of $3,810,153.58. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Steve Ming Lo sold 96,666 shares of the firm’s stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $6.10, for a total transaction of $589,662.60. Following the completion of the transaction, the chief accounting officer now owns 391,525 shares of the company’s stock, valued at $2,388,302.50. This trade represents a 19.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 9.78% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. The Manufacturers Life Insurance Company bought a new position in shares of RealReal in the second quarter worth approximately $123,000. Fortis Group Advisors LLC grew its stake in RealReal by 11.0% in the 3rd quarter. Fortis Group Advisors LLC now owns 77,635 shares of the company’s stock worth $244,000 after buying an additional 7,686 shares in the last quarter. Park Edge Advisors LLC bought a new position in shares of RealReal in the 3rd quarter worth $41,000. Chicago Partners Investment Group LLC raised its position in shares of RealReal by 53.0% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 55,464 shares of the company’s stock valued at $163,000 after buying an additional 19,215 shares in the last quarter. Finally, AM Investment Strategies LLC bought a new stake in shares of RealReal during the 3rd quarter worth $167,000. 64.73% of the stock is currently owned by hedge funds and other institutional investors.

About RealReal

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.