RH (NYSE:RH) Stock Gets Price Target Reduction from Citigroup

Key Points

• Citigroup cut its RH price target to $155 from $166 and maintained a neutral rating, implying about 18% upside from the prior close.
• RH shares fell 4.6% to $131.17 on Friday. Across analysts, the stock has a consensus “Hold” rating and an average price target of $163.
• In its latest reported quarter, RH posted earnings of $2.70 per share, above the $0.38 consensus estimate, while revenue rose 2.6% year over year to $922.15 million.

RH (NYSE:RH - Get Free Report) had its target price decreased by analysts at Citigroup from $166.00 to $155.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's target price would indicate a potential upside of 18.17% from the stock's previous close.

Other equities research analysts have also recently issued reports about the company. TD Cowen reaffirmed a "buy" rating on shares of RH in a research note on Tuesday, October 6th. The Goldman Sachs Group decreased their target price on RH from $164.00 to $140.00 and set a "neutral" rating on the stock in a research note on Tuesday, October 20th. Telsey Advisory Group increased their target price on RH from $140.00 to $155.00 and gave the stock a "market perform" rating in a research note on Friday, September 11th. UBS Group set a $190.00 target price on RH in a report on Friday, September 11th. Finally, Stifel Nicolaus dropped their target price on RH from $130.00 to $120.00 and set a "hold" rating for the company in a research report on Monday, September 28th. Seven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $163.00.

RH Trading Down 4.6%

RH stock traded down $6.26 during midday trading on Friday, hitting $131.17. 479,958 shares of the company's stock were exchanged, compared to its average volume of 996,850. The stock has a market capitalization of $2.48 billion, a PE ratio of 23.34, a P/E/G ratio of 2.79 and a beta of 1.92. RH has a 1-year low of $106.30 and a 1-year high of $239.40. The business has a 50-day simple moving average of $130.61 and a two-hundred day simple moving average of $152.51. The company has a current ratio of 1.12, a quick ratio of 0.37 and a debt-to-equity ratio of 26.57.

RH (NYSE:RH - Get Free Report) last posted its earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, beating analysts' consensus estimates of $0.38 by $2.32. RH had a net margin of 3.23% and a return on equity of 132.79%. The company had revenue of $922.15 million for the quarter, compared to analysts' expectations of $915.09 million. During the same quarter in the prior year, the company posted $2.93 earnings per share. RH's revenue for the quarter was up 2.6% compared to the same quarter last year. On average, sell-side analysts predict that RH will post 5.19 EPS for the current fiscal year.

Insider Buying and Selling

In other RH news, Director Mark Demilio sold 1,000 shares of the business's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $132.00, for a total value of $132,000.00. Following the completion of the transaction, the director owned 25,680 shares in the company, valued at $3,389,760. The trade was a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 26.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RH. BlackRock Inc. boosted its holdings in shares of RH by 41.7% in the 2nd quarter. BlackRock Inc. now owns 1,978,271 shares of the company's stock valued at $325,881,000 after buying an additional 581,710 shares in the last quarter. Bank of America Corp DE grew its position in shares of RH by 166.5% in the 1st quarter. Bank of America Corp DE now owns 238,681 shares of the company's stock valued at $33,372,000 after buying an additional 149,127 shares during the last quarter. Renaissance Technologies LLC purchased a new position in shares of RH in the 1st quarter valued at $13,954,000. Lodge Hill Capital LLC acquired a new stake in RH during the 1st quarter worth $13,283,000. Finally, Canada Pension Plan Investment Board acquired a new stake in RH during the 2nd quarter worth $14,442,000. 90.17% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Negative Sentiment: RH’s shares declined more than the market, but the report offered no specific explanation for the move. RH Declines More Than Market: Some Information for Investors

About RH

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality interiors. Its offerings include furniture, lighting, textiles, rugs, bath and plumbing fixtures, outdoor furnishings, décor, and related design products.

The company markets its products through a multichannel platform that includes RH Galleries, smaller design galleries, outlet locations, catalogs, and its digital channels. RH also operates businesses such as Waterworks, which specializes in luxury kitchen and bath products, and provides interior-design services through its design professionals.

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