Penn Capital Management Company LLC Boosts Stock Position in The RealReal, Inc. $REAL

Key Points

• Penn Capital Management increased its stake in The RealReal by 13% in the fourth quarter, buying 153,806 more shares and bringing its total to 1,336,674 shares worth about $21.1 million.
• The RealReal reported Q1 revenue growth of 18.5% to $189.7 million and matched analysts’ EPS expectations at -$0.01, while analysts currently see a consensus target price of $17.25.
• Despite the strong revenue update, insiders have been selling shares recently, and the stock is trading below its 50-day and 200-day moving averages at $9.50 versus a 52-week high of $17.39.

Penn Capital Management Company LLC lifted its position in shares of The RealReal, Inc. (NASDAQ:REAL - Free Report) by 13.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,336,674 shares of the company's stock after buying an additional 153,806 shares during the quarter. RealReal makes up 1.7% of Penn Capital Management Company LLC's holdings, making the stock its 6th largest holding. Penn Capital Management Company LLC owned about 1.15% of RealReal worth $21,112,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Evoke Wealth LLC grew its position in shares of RealReal by 2.9% during the 4th quarter. Evoke Wealth LLC now owns 43,853 shares of the company's stock worth $692,000 after buying an additional 1,240 shares in the last quarter. Mach 1 Financial Group LLC bought a new position in shares of RealReal during the 4th quarter worth $178,000. Fortis Group Advisors LLC bought a new position in shares of RealReal during the 4th quarter worth $801,000. Larson Financial Group LLC boosted its position in RealReal by 40.7% during the fourth quarter. Larson Financial Group LLC now owns 4,099 shares of the company's stock valued at $65,000 after purchasing an additional 1,185 shares in the last quarter. Finally, ProShare Advisors LLC boosted its position in RealReal by 13.0% during the fourth quarter. ProShare Advisors LLC now owns 18,405 shares of the company's stock valued at $290,000 after purchasing an additional 2,112 shares in the last quarter. Institutional investors own 64.73% of the company's stock.

RealReal Stock Performance

RealReal stock opened at $9.50 on Wednesday. The stock has a 50-day moving average of $10.16 and a two-hundred day moving average of $12.60. The RealReal, Inc. has a one year low of $4.70 and a one year high of $17.39. The stock has a market cap of $1.14 billion, a PE ratio of -9.31 and a beta of 2.84.

RealReal (NASDAQ:REAL - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.01) EPS for the quarter, meeting analysts' consensus estimates of ($0.01). The business had revenue of $189.72 million during the quarter, compared to analysts' expectations of $187.82 million. During the same quarter last year, the business posted ($0.08) earnings per share. The company's quarterly revenue was up 18.5% compared to the same quarter last year. As a group, sell-side analysts predict that The RealReal, Inc. will post -0.19 EPS for the current fiscal year.

Insider Buying and Selling

In other RealReal news, insider Todd A. Suko sold 17,353 shares of the stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $9.25, for a total value of $160,515.25. Following the completion of the sale, the insider directly owned 605,394 shares in the company, valued at approximately $5,599,894.50. This trade represents a 2.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Luke Thomas Friang sold 21,183 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $9.25, for a total value of $195,942.75. Following the completion of the sale, the insider owned 530,676 shares of the company's stock, valued at approximately $4,908,753. This trade represents a 3.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 218,415 shares of company stock valued at $2,022,402 in the last 90 days. 9.00% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on REAL shares. Wall Street Zen downgraded RealReal from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Roth Mkm set a $17.00 price objective on RealReal in a research report on Friday, May 8th. UBS Group dropped their price objective on RealReal from $16.00 to $14.00 and set a "neutral" rating on the stock in a research report on Friday, May 8th. BTIG Research dropped their price objective on RealReal from $18.00 to $17.00 and set a "buy" rating on the stock in a research report on Friday, May 8th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RealReal in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average 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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