Castleark Management LLC Makes New Investment in The RealReal, Inc. $REAL

Key Points

• Castleark Management initiated a position in The RealReal, buying 156,760 shares worth approximately $1.42 million. Institutional ownership reached 64.73%, with Renaissance Technologies and Arrowstreet Capital also significantly increasing their holdings.
• RealReal reported quarterly revenue of $189.72 million, up 18.5% year over year and ahead of analyst expectations, while EPS of $(0.01) matched consensus estimates.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $17.25, compared with shares trading at $11.66; however, insiders sold 166,830 shares worth roughly $1.54 million during the quarter.

Castleark Management LLC bought a new position in shares of The RealReal, Inc. (NASDAQ:REAL - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 156,760 shares of the company's stock, valued at approximately $1,423,000. Castleark Management LLC owned 0.13% of RealReal at the end of the most recent quarter.

Several other large investors also recently modified their holdings of REAL. Entropy Technologies LP lifted its stake in RealReal by 104.4% in the first quarter. Entropy Technologies LP now owns 79,400 shares of the company's stock worth $721,000 after acquiring an additional 40,559 shares during the period. Renaissance Technologies LLC boosted its holdings in RealReal by 117.9% in the first quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company's stock valued at $14,947,000 after acquiring an additional 890,700 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in RealReal by 58.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company's stock valued at $36,765,000 after purchasing an additional 1,489,939 shares during the period. State of Wyoming increased its position in RealReal by 22.4% during the 1st quarter. State of Wyoming now owns 51,286 shares of the company's stock valued at $466,000 after purchasing an additional 9,376 shares during the period. Finally, Militia Capital Management LLC bought a new position in RealReal in the 1st quarter worth $333,000. 64.73% of the stock is owned by institutional investors.

RealReal Price Performance

Shares of RealReal stock opened at $11.66 on Tuesday. The RealReal, Inc. has a 1 year low of $5.00 and a 1 year high of $17.39. The firm's 50-day moving average is $10.75 and its 200 day moving average is $11.50. The stock has a market cap of $1.40 billion, a price-to-earnings ratio of -11.43 and a beta of 2.66.

RealReal (NASDAQ:REAL - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.01) EPS for the quarter, meeting the consensus estimate of ($0.01). The business had revenue of $189.72 million for the quarter, compared to analysts' expectations of $187.82 million. The business's revenue for the quarter was up 18.5% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.08) earnings per share. On average, equities analysts expect that The RealReal, Inc. will post -0.14 EPS for the current fiscal year.

Insider Buying and Selling at RealReal

In related news, CFO Gopal Ajay Madan sold 35,023 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $323,962.75. Following the completion of the sale, the chief financial officer directly owned 1,145,278 shares in the company, valued at approximately $10,593,821.50. The trade was a 2.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Todd A. Suko sold 17,353 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $160,515.25. Following the sale, the insider directly owned 605,394 shares of the company's stock, valued at approximately $5,599,894.50. The trade was a 2.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 166,830 shares of company stock worth $1,543,178. 2.66% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. BTIG Research reaffirmed a "buy" rating and issued a $17.00 target price on shares of RealReal in a research report on Wednesday, June 3rd. Robert W. Baird set a $13.00 price target on shares of RealReal in a research report on Friday, May 8th. Wall Street Zen downgraded shares of RealReal from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Roth Capital set a $17.00 price objective on shares of RealReal in a report on Friday, May 8th. Finally, UBS Group reaffirmed a "buy" rating on shares of RealReal in a research report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $17.25.

RealReal Profile

The RealReal, Inc NASDAQ: REAL operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal's business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.

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