Hodges Capital Management Inc. Sells 60,606 Shares of RH $RH

Key Points

• Hodges Capital Management cut its RH stake by 91.2% in the second quarter, selling 60,606 shares and retaining 5,834 shares valued at approximately $961,000. Institutional investors collectively own 90.17% of RH.
• Analysts maintain a consensus “Hold” rating with an average price target of $174.29; Wells Fargo raised its target to $225, while Bank of America initiated coverage with an “Underperform” rating and a $156 target.
• RH shares opened at $181.40, near recent moving-average levels. The company’s latest quarterly results beat estimates on both earnings and revenue, although revenue declined 1.7% year over year.

Hodges Capital Management Inc. reduced its stake in shares of RH (NYSE:RH - Free Report) by 91.2% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,834 shares of the company's stock after selling 60,606 shares during the quarter. Hodges Capital Management Inc.'s holdings in RH were worth $961,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in RH. Belpointe Asset Management LLC grew its stake in RH by 3.5% in the second quarter. Belpointe Asset Management LLC now owns 2,217 shares of the company's stock valued at $365,000 after purchasing an additional 75 shares during the last quarter. Primoris Wealth Advisors LLC purchased a new stake in shares of RH during the second quarter valued at about $1,730,000. Cambridge Investment Research Advisors Inc. lifted its position in shares of RH by 51.0% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 3,617 shares of the company's stock valued at $596,000 after buying an additional 1,222 shares during the last quarter. TD Waterhouse Canada Inc. boosted its holdings in shares of RH by 33.3% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 536 shares of the company's stock valued at $88,000 after buying an additional 134 shares in the last quarter. Finally, Udine Wealth Management Inc. boosted its holdings in shares of RH by 25.7% in the 2nd quarter. Udine Wealth Management Inc. now owns 17,974 shares of the company's stock valued at $2,961,000 after buying an additional 3,674 shares in the last quarter. Institutional investors own 90.17% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently commented on RH shares. Wells Fargo & Company boosted their price objective on shares of RH from $175.00 to $225.00 and gave the stock an "overweight" rating in a research note on Tuesday. Guggenheim restated a "buy" rating and issued a $200.00 target price on shares of RH in a research note on Friday, June 12th. Zacks Research raised shares of RH from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 16th. Robert W. Baird upped their price target on RH from $125.00 to $150.00 and gave the stock a "neutral" rating in a research report on Friday, June 12th. Finally, Bank of America initiated coverage on RH in a report on Monday, August 3rd. They set an "underperform" rating and a $156.00 price objective for the company. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $174.29.

Insider Activity at RH

In other news, Director Carlos Alberini bought 11,388 shares of RH stock in a transaction that occurred on Monday, June 29th. The stock was bought at an average price of $160.90 per share, for a total transaction of $1,832,329.20. Following the purchase, the director directly owned 32,190 shares of the company's stock, valued at approximately $5,179,371. The trade was a 54.74% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Mark S. Demilio sold 3,102 shares of RH stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $144.00, for a total value of $446,688.00. Following the sale, the director directly owned 25,830 shares of the company's stock, valued at approximately $3,719,520. This represents a 10.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 132,749 shares of company stock valued at $21,856,812 in the last ninety days. Company insiders own 26.90% of the company's stock.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Wells Fargo forecast strong price appreciation for RH, providing a potentially supportive analyst signal and helping reinforce the recovery from the stock’s 52-week low. Wells Fargo forecasts strong price appreciation for RH
• Neutral Sentiment: RH was recently identified among the market’s most-shorted stocks. High short interest can reflect bearish investor expectations, but it also creates the possibility of short-covering and sharper upward moves if sentiment improves. Short sellers attack RH
• Negative Sentiment: A recent market update said RH fell while the broader market advanced, indicating near-term relative weakness and continued sensitivity to investor concerns about the luxury-home-furnishings retailer. RH stock slides as market rises

RH Stock Up 1.0%

RH stock opened at $181.40 on Friday. The firm has a 50 day moving average of $168.18 and a 200 day moving average of $157.87. The stock has a market capitalization of $3.43 billion, a PE ratio of 35.02, a price-to-earnings-growth ratio of 4.20 and a beta of 1.87. The company has a quick ratio of 0.32, a current ratio of 1.13 and a debt-to-equity ratio of 54.96. RH has a 52 week low of $106.30 and a 52 week high of $257.00.

RH (NYSE:RH - Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($2.12) by $0.15. The business had revenue of $800.33 million for the quarter, compared to analyst estimates of $792.55 million. RH had a net margin of 3.01% and a return on equity of 423.79%. RH's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.13 EPS. Sell-side analysts forecast that RH will post 4.27 earnings per share for the current year.

RH Profile

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH's product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.

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