RealReal's (REAL) Buy Rating Reaffirmed at Roth Capital

Key Points

• Roth Capital reaffirmed its Buy rating on RealReal and set a $19 price target, implying 81.68% upside from the stock’s prior close. The broader analyst consensus is Moderate Buy with an average target of $17.75.
• RealReal shares fell 0.8% to $10.46, while the company’s latest quarter exceeded expectations with adjusted earnings of a $0.01 loss per share versus a $0.02 expected loss and revenue of $192.57 million, up 16.6% year over year.
• Insiders have been selling shares: company insiders sold 173,004 shares worth approximately $1.9 million over the past 90 days, while institutional investors own 64.73% of the stock.

RealReal (NASDAQ:REAL - Get Free Report)'s stock had its "buy" rating reissued by Roth Capital in a report released on Friday, Benzinga reports. They currently have a $19.00 target price on the stock. Roth Capital's price objective suggests a potential upside of 81.68% from the stock's previous close.

Several other research firms also recently issued reports on REAL. UBS Group lifted their price target on shares of RealReal from $14.00 to $16.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of RealReal in a report on Thursday. Finally, BTIG Research reiterated a "buy" rating and set a $17.00 price objective on shares of RealReal in a report on Thursday, September 17th. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, RealReal presently has a consensus rating of "Moderate Buy" and a consensus target price of $17.75.

RealReal Stock Down 0.8%

Shares of RealReal stock traded down $0.08 on Friday, hitting $10.46. The stock had a trading volume of 2,869,945 shares, compared to its average volume of 3,232,673. The business's 50 day moving average is $10.10 and its two-hundred day moving average is $10.57. RealReal has a twelve month low of $8.05 and a twelve month high of $17.39. The stock has a market cap of $1.27 billion, a price-to-earnings ratio of -9.32 and a beta of 2.81.

RealReal (NASDAQ:REAL - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.01. The business had revenue of $192.57 million during the quarter, compared to analyst estimates of $188.11 million. The company's revenue for the quarter was up 16.6% on a year-over-year basis. As a group, equities analysts predict that RealReal will post -0.12 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Todd A. Suko sold 17,567 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $10.97, for a total transaction of $192,709.99. Following the transaction, the insider owned 587,897 shares of the company's stock, valued at approximately $6,449,230.09. This trade represents a 2.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Luke Friang sold 22,028 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $10.98, for a total value of $241,867.44. Following the transaction, the insider owned 508,648 shares in the company, valued at approximately $5,584,955.04. The trade was a 4.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 173,004 shares of company stock valued at $1,899,283 in the last ninety days. 2.66% of the stock is owned by insiders.

Institutional Investors Weigh In On RealReal

Several institutional investors and hedge funds have recently bought and sold shares of REAL. EverSource Wealth Advisors LLC grew its stake in RealReal by 25.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 6,253 shares of the company's stock worth $57,000 after buying an additional 1,253 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of RealReal by 0.7% in the 1st quarter. Bank of New York Mellon Corp now owns 341,277 shares of the company's stock valued at $3,099,000 after purchasing an additional 2,295 shares during the period. KBC Group NV acquired a new position in RealReal in the 1st quarter worth approximately $26,000. Allworth Financial LP increased its stake in RealReal by 211.3% in the 2nd quarter. Allworth Financial LP now owns 4,504 shares of the company's stock valued at $53,000 after buying an additional 3,057 shares during the period. Finally, Arizona State Retirement System raised its holdings in shares of RealReal by 12.9% during the second quarter. Arizona State Retirement System now owns 30,369 shares of the company's stock worth $358,000 after acquiring an additional 3,464 shares in the last quarter. Hedge funds and other institutional investors own 64.73% of the company's stock.

More RealReal News

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Debt refinancing reduces financial pressure: The RealReal secured a new $150 million senior secured term loan and a $25 million revolving credit facility. Proceeds will be used to redeem its 2029 notes, extending secured debt maturity to 2033 and lowering interest expense by approximately $4 million annually. The company also outlined a medium-term leverage target. The RealReal refinancing announcement
• Positive Sentiment: Free-cash-flow outlook is improving: Coverage highlighted that the luxury resale marketplace is entering its third consecutive year of positive free cash flow, with the possibility of roughly doubling free cash flow next year. That could support deleveraging and strengthen the investment case. Why The RealReal stock popped
• Positive Sentiment: Analysts remain bullish: Roth Capital reaffirmed its “Buy” rating and set a $19 price target. Separately, nine analysts reportedly have an average target of $17.75, indicating substantial expected upside based on current trading levels. Analyst targets for The RealReal
• Neutral Sentiment: Next major catalyst is earnings: The RealReal is scheduled to report third-quarter 2026 results after the market closes on October 29, followed by a conference call. Investors will look for evidence that growth and cash-flow improvements are continuing. The RealReal third-quarter earnings date
• Negative Sentiment: Estimate revisions pose a near-term risk: Zacks noted that the latest trend in earnings-estimate revisions may not support continued upward momentum, despite the stock’s recent high-volume advance. Zacks analysis of The RealReal

RealReal Company Profile

The RealReal, Inc operates an online and physical marketplace for authenticated, pre-owned luxury goods. The company enables individuals to consign and purchase luxury apparel, handbags, shoes, jewelry, watches, fine art and home décor from leading luxury brands.

The RealReal provides sellers with services that include item evaluation, authentication, pricing, merchandising, photography, listing, shipping and customer support. Buyers can shop through the company's website, mobile application and select retail locations, with products authenticated before being offered for sale.

Founded in 2011 by Julie Wainwright, The RealReal primarily serves customers in the United States.