RH (NYSE:RH) Upgraded by Wall Street Zen to Hold Rating

Key Points

• Wall Street Zen upgraded RH from “sell” to “hold,” while broader analyst sentiment remains “Hold,” with seven Buy, ten Hold and three Sell ratings and a consensus price target of $165.57.
• RH reported quarterly EPS of $2.70 versus roughly $0.38 expected, while revenue rose 2.6% year over year to $922.15 million, broadly in line with estimates.
• RH shares opened at $133.91, well below their 50-day moving average of $166.32; insiders sold 132,749 shares worth approximately $21.9 million over the past 90 days.

RH (NYSE:RH - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also issued reports on RH. Morgan Stanley lowered their target price on shares of RH from $240.00 to $210.00 and set an "overweight" rating for the company in a report on Friday. Telsey Advisory Group upped their price target on RH from $140.00 to $155.00 and gave the stock a "market perform" rating in a research note on Friday. BNP Paribas Exane reiterated an "underperform" rating and set a $81.00 price objective (down from $90.00) on shares of RH in a research note on Friday. KeyCorp reiterated a "sector weight" rating on shares of RH in a research note on Friday, June 12th. Finally, Guggenheim reissued a "buy" rating and issued a $200.00 target price on shares of RH in a report on Friday. Seven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $165.57.

RH Stock Down 0.1%

NYSE:RH opened at $133.91 on Friday. The company has a debt-to-equity ratio of 54.96, a current ratio of 1.13 and a quick ratio of 0.32. The firm's 50-day moving average price is $166.32 and its 200-day moving average price is $150.09. The company has a market capitalization of $2.53 billion, a PE ratio of 23.83, a P/E/G ratio of 3.19 and a beta of 1.85. RH has a 1-year low of $106.30 and a 1-year high of $248.44.

RH (NYSE:RH - Get Free Report) last issued its quarterly earnings results on Thursday, September 10th. The company reported $2.70 earnings per share (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 198.76%. The company had revenue of $922.15 million during the quarter, compared to analysts' expectations of $915.09 million. During the same period last year, the company posted $2.93 EPS. RH's revenue was up 2.6% on a year-over-year basis. On average, equities analysts predict that RH will post 4.2 EPS for the current fiscal year.

Insiders Place Their Bets

In other RH news, CEO Gary Friedman sold 69,069 shares of the company's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $169.48, for a total transaction of $11,705,814.12. Following the transaction, the chief executive officer owned 3,282,268 shares in the company, valued at approximately $556,278,780.64. This represents a 2.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Mark Demilio sold 3,102 shares of the firm's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $144.00, for a total transaction of $446,688.00. Following the sale, the director directly owned 25,830 shares in the company, valued at approximately $3,719,520. The trade was a 10.72% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 132,749 shares of company stock valued at $21,856,812. 26.90% of the stock is owned by insiders.

Institutional Investors Weigh In On RH

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Belpointe Asset Management LLC raised its stake in RH by 3.5% during the 2nd quarter. Belpointe Asset Management LLC now owns 2,217 shares of the company's stock valued at $365,000 after buying an additional 75 shares during the last quarter. D.B. Root & Company LLC boosted its stake in shares of RH by 0.9% in the 2nd quarter. D.B. Root & Company LLC now owns 8,413 shares of the company's stock worth $1,386,000 after buying an additional 78 shares during the last quarter. Public Employees Retirement System of Ohio boosted its stake in shares of RH by 1.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 5,122 shares of the company's stock worth $1,041,000 after buying an additional 81 shares during the last quarter. US Bancorp DE grew its holdings in shares of RH by 30.8% in the third quarter. US Bancorp DE now owns 416 shares of the company's stock worth $85,000 after acquiring an additional 98 shares during the period. Finally, Oregon Public Employees Retirement Fund grew its holdings in shares of RH by 3.3% in the first quarter. Oregon Public Employees Retirement Fund now owns 3,170 shares of the company's stock worth $443,000 after acquiring an additional 100 shares during the period. Hedge funds and other institutional investors own 90.17% of the company's stock.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH reported quarterly EPS of $2.70, well above the roughly $0.38–$0.42 analyst consensus. Revenue rose 2.6% year over year to approximately $922.2 million, broadly near estimates. A tariff refund helped lift profitability, while gross profit increased 8.7% to $444.9 million. RH Stock Rallies After Mixed Q2 Print
• Positive Sentiment: Management is positioning the new RH Estates collection and gallery format as a major long-term growth opportunity, saying it could potentially double the company’s addressable market. RH aims for Estates to represent half of its offering within five years. RH Estates: The Strategy Behind the Vision
• Positive Sentiment: Some analysts remain constructive: JPMorgan maintained an overweight rating with a $190 target, TD Cowen kept a buy rating at $190, and Guggenheim reaffirmed its buy rating with a $200 target. Analyst Forecast Revisions

RH Company Profile

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that offers products for residential and hospitality interiors. Its collections include furniture, lighting, textiles, rugs, bath and hardware, outdoor furnishings, and decorative accessories across a range of design categories.

The company sells through a network of RH Galleries, outlet locations, source books and its digital platforms. Its galleries are designed as immersive retail spaces that showcase coordinated room settings and related collections.

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