Lazard Asset Management LLC Sells 22,108 Shares of RH $RH

Key Points

• Lazard Asset Management reduced its RH stake by 26.4%, selling 22,108 shares in the first quarter and retaining 61,641 shares valued at approximately $8.6 million. Institutional investors collectively own 90.17% of RH.
• RH’s latest quarterly results modestly beat expectations, with revenue of $800.3 million and adjusted EPS of $(1.97), but revenue declined 1.7% year over year amid tariff, sourcing and backlog concerns.
• Investor sentiment remains cautious as higher mortgage rates and uneven housing activity pressure demand for luxury home furnishings. RH has a consensus “Hold” rating, while recent insider sales—including 69,069 shares sold by CEO Gary Friedman—add to concerns.

Lazard Asset Management LLC decreased its holdings in RH (NYSE:RH - Free Report) by 26.4% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 61,641 shares of the company's stock after selling 22,108 shares during the quarter. Lazard Asset Management LLC owned 0.33% of RH worth $8,619,000 as of its most recent filing with the SEC.

Other large investors also recently modified their holdings of the company. Harvest Fund Management Co. Ltd bought a new stake in RH in the third quarter valued at $30,000. Advisory Services Network LLC acquired a new stake in RH during the 3rd quarter valued at $31,000. Wilmington Savings Fund Society FSB raised its position in RH by 200.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company's stock valued at $31,000 after purchasing an additional 116 shares during the last quarter. Modus Advisors LLC bought a new position in shares of RH in the fourth quarter valued at about $34,000. Finally, Geneos Wealth Management Inc. acquired a new stake in RH in the 1st quarter valued at about $42,000. 90.17% of the stock is currently owned by institutional investors.

Key RH News

Here are the key news stories impacting RH this week:

• Neutral Sentiment: RH’s latest quarter modestly exceeded analyst expectations, with adjusted EPS of $(1.97) versus consensus of $(2.12) and revenue of $800.3 million versus estimates of $792.6 million. However, revenue declined 1.7% year over year, while tariffs, sourcing changes and backlog conversion remain concerns. RH shares slide as rising mortgage rates and housing softness likely pressure sentiment
• Negative Sentiment: The average U.S. 30-year mortgage rate rose to 6.66%, its highest level in roughly a year. Higher borrowing costs can reduce home turnover and discretionary spending on premium furniture, directly pressuring RH’s demand outlook. RH shares slide as rising mortgage rates and housing softness likely pressure sentiment
• Negative Sentiment: June new-home sales of 628,000 on a seasonally adjusted annualized basis reinforced concerns that housing activity remains uneven. That weakens the near-term backdrop for a luxury home-furnishings retailer dependent on housing-related purchases. RH shares slide as rising mortgage rates and housing softness likely pressure sentiment
• Negative Sentiment: Insider selling may have added to investor caution. Chairman and CEO Gary Friedman has reported 11 sales totaling 125,000 shares over the past six months, while insiders overall recorded 28 sales versus three purchases. RH shares slide as rising mortgage rates and housing softness likely pressure sentiment
• Negative Sentiment: Analyst price targets are mixed, but the six-month median target of $160.50 is below the stock’s recent trading level, suggesting limited upside in the near term and reinforcing valuation concerns.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Citigroup boosted their target price on RH from $150.00 to $166.00 and gave the stock a "neutral" rating in a research report on Monday, June 15th. Wall Street Zen cut RH from a "hold" rating to a "sell" rating in a research note on Saturday, April 4th. Robert W. Baird upped their target price on shares of RH from $125.00 to $150.00 and gave the company a "neutral" rating in a research note on Friday, June 12th. Guggenheim reissued a "buy" rating and set a $200.00 price target on shares of RH in a research report on Friday, June 12th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $240.00 price objective on shares of RH in a report on Monday, May 11th. Seven research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $171.71.

Insider Buying and Selling at RH

In other news, CEO Gary G. Friedman sold 69,069 shares of the stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $169.48, for a total value of $11,705,814.12. Following the transaction, the chief executive officer directly owned 3,282,268 shares of the company's stock, valued at $556,278,780.64. This represents a 2.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Mark S. Demilio sold 3,102 shares of the 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 completion of the transaction, the director directly owned 25,830 shares in the company, valued at approximately $3,719,520. This represents a 10.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 132,749 shares of company stock worth $21,856,812 over the last ninety days. Insiders own 26.90% of the company's stock.

RH Stock Performance

Shares of RH stock opened at $166.24 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 company has a fifty day moving average price of $160.09 and a two-hundred day moving average price of $160.68. The stock has a market cap of $3.14 billion, a P/E ratio of 32.09, a P/E/G ratio of 4.04 and a beta of 1.88. RH has a one year low of $106.30 and a one year high of $257.00.

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

RH Company 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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