RH (NYSE:RH) Stock Price Down 8.8% – Here’s Why

RH (NYSE:RH)’s share price dropped 8.8% during trading on Tuesday . The stock traded as low as $278.54 and last traded at $280.33. Approximately 540,437 shares changed hands 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

A number of analysts have recently weighed in on the stock. BNP Paribas reaffirmed an “underperform” rating and issued a $253.00 price target on shares of RH in a research note on Wednesday, November 13th. Morgan Stanley raised RH from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $435.00 to $530.00 in a report on Monday, January 13th. Wedbush reaffirmed an “outperform” rating and set a $500.00 price target on shares of RH in a research note on Tuesday, February 18th. Loop Capital boosted 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. Finally, Robert W. Baird upped their price objective on RH from $300.00 to $400.00 and gave the company a “neutral” rating in a report on Friday, December 13th. 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’s stock. According to data from MarketBeat, RH presently has an average rating of “Moderate Buy” and a consensus target price of $431.60.

RH Stock Down 5.1 %

The firm’s 50-day moving average price is $398.49 and its two-hundred day moving average price is $354.28. The firm has a market capitalization of $5.43 billion, a PE ratio of 83.81, a P/E/G ratio of 2.65 and a beta of 2.42.

RH (NYSE:RH) last announced its earnings results on Thursday, December 12th. The company reported $2.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.19). The firm had revenue of $811.73 million for 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%. RH’s revenue for the quarter was up 8.1% compared to the same quarter last year. During the same period last year, the firm earned ($0.42) earnings per share. Equities research analysts forecast that RH will post 4.39 EPS for the current year.

Insider Buying and Selling at RH

In related news, insider Eri Chaya sold 25,000 shares of the stock in a transaction on Tuesday, January 21st. The stock was sold at an average price of $450.45, for a total transaction of $11,261,250.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Christina Hargarten sold 5,280 shares of RH 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 sale, the chief accounting officer now directly owns 484 shares of the company’s stock, valued at approximately $216,444.80. The trade was a 91.60 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 66,880 shares of company stock valued at $29,129,879 in the last 90 days. 28.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On RH

A number of hedge funds have recently added to or reduced their stakes in RH. International Assets Investment Management LLC raised its holdings in shares of RH by 979.0% during the 3rd quarter. International Assets Investment Management LLC now owns 669 shares of the company’s stock valued at $224,000 after purchasing an additional 607 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in RH by 13.3% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 944 shares of the company’s stock worth $316,000 after purchasing an additional 111 shares in the last quarter. State of Alaska Department of Revenue increased its position in RH by 3.6% during the third quarter. State of Alaska Department of Revenue now owns 1,733 shares of the company’s stock worth $579,000 after buying an additional 60 shares during the last quarter. Nisa Investment Advisors LLC raised its holdings in RH by 4.9% during the third quarter. Nisa Investment Advisors LLC now owns 747 shares of the company’s stock valued at $250,000 after buying an additional 35 shares in the last quarter. Finally, First Trust Direct Indexing L.P. acquired a new stake in shares of RH in the third quarter worth about $256,000. Institutional investors and hedge funds 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.