RH $RH Shares Sold by Bank of America Corp DE

Key Points

• Bank of America cut its RH stake by 72.3% in the second quarter, selling 172,534 shares and retaining 66,147 shares worth approximately $10.9 million. Institutional investors still own about 90.2% of RH.
• RH reported quarterly earnings of $2.70 per share, significantly above the $0.38 consensus estimate, while revenue of $922.2 million modestly exceeded forecasts and rose 2.6% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $165.57. RH shares remain well below their 52-week high and key moving averages, while the company also faces high leverage and a low quick ratio.

Bank of America Corp DE lessened its holdings in shares of RH (NYSE:RH - Free Report) by 72.3% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 66,147 shares of the company's stock after selling 172,534 shares during the quarter. Bank of America Corp DE owned approximately 0.35% of RH worth $10,896,000 at the end of the most recent quarter.

A number of other large investors also recently made changes to their positions in the business. BlackRock Inc. increased its stake in shares of RH by 41.7% in the second quarter. BlackRock Inc. now owns 1,978,271 shares of the company's stock worth $325,881,000 after acquiring an additional 581,710 shares during the last quarter. Dimensional Fund Advisors LP increased its position in RH by 33.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 316,111 shares of the company's stock worth $44,193,000 after purchasing an additional 78,782 shares during the last quarter. Bank of New York Mellon Corp raised its stake in shares of RH by 23.5% during the 1st quarter. Bank of New York Mellon Corp now owns 259,969 shares of the company's stock worth $36,349,000 after purchasing an additional 49,384 shares in the last quarter. Kettle Hill Capital Management LLC purchased a new stake in shares of RH during the 4th quarter worth about $28,865,000. Finally, Norges Bank acquired a new stake in shares of RH during the 4th quarter valued at about $28,092,000. Institutional investors and hedge funds own 90.17% of the company's stock.

RH Stock Up 2.6%

Shares of RH stock opened at $124.32 on Friday. The stock has a market capitalization of $2.35 billion, a P/E ratio of 22.12, a PEG ratio of 2.28 and a beta of 1.85. The company has a quick ratio of 0.37, a current ratio of 1.12 and a debt-to-equity ratio of 26.57. The stock has a 50 day moving average price of $157.03 and a two-hundred day moving average price of $147.26. RH has a 12-month low of $106.30 and a 12-month high of $239.40.

RH (NYSE:RH - Get Free Report) last announced its quarterly earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, beating the consensus estimate of $0.38 by $2.32. The company had revenue of $922.15 million for the quarter, compared to the consensus estimate of $915.09 million. RH had a return on equity of 132.79% and a net margin of 3.23%.The company's revenue for the quarter was up 2.6% compared to the same quarter last year. During the same quarter last year, the company posted $2.93 earnings per share. Equities analysts expect that RH will post 5.45 earnings per share for the current year.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Neutral Sentiment: Director Mark Demilio sold 1,000 RH shares at an average price of $132, worth approximately $132,000. The transaction reduced his position by 3.75%, but he still owns 25,680 shares, so the sale may have limited signaling value. RH Director Share Sale
• Positive Sentiment: RH’s latest reported quarterly results exceeded expectations: earnings were $2.70 per share versus the $0.38 consensus estimate, while revenue of $922.2 million modestly topped forecasts. The earnings beat provides fundamental support for the stock despite the limited 2.6% year-over-year revenue increase.
• Negative Sentiment: Analysts have recently cut RH price targets following the earnings report. The consensus rating remains “Hold,” with an average target of $165.57, while individual targets range from $114 to $190. This reflects uncertainty about the company’s growth outlook and valuation.
• Negative Sentiment: RH remains below its 50-day and 200-day moving averages and substantially below its 52-week high, indicating ongoing technical weakness. A 3.23% net margin, high debt-to-equity ratio and low quick ratio may also keep investors cautious.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Wells Fargo & Company dropped their price objective on RH from $225.00 to $175.00 and set an "overweight" rating on the stock in a report on Friday, September 11th. Morgan Stanley reduced their target price on shares of RH from $240.00 to $210.00 and set an "overweight" rating for the company in a research note on Friday, September 11th. Stifel Nicolaus boosted their target price on shares of RH from $110.00 to $130.00 and gave the stock a "hold" rating in a research report on Friday, June 12th. Guggenheim reissued a "buy" rating and issued a $200.00 target price on shares of RH in a research report on Friday, September 11th. Finally, UBS Group set a $190.00 price target on shares of RH in a research note on Friday, September 11th. Seven research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $165.57.

Insider Buying and Selling at RH

In other news, Director Mark S. Demilio sold 1,000 shares of RH stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $132.00, for a total value of $132,000.00. Following the transaction, the director directly owned 25,680 shares in the company, valued at approximately $3,389,760. The trade was a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Gary G. Friedman sold 48,238 shares of the business's stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $158.66, for a total value of $7,653,441.08. Following the transaction, the chief executive officer directly owned 3,226,337 shares of the company's stock, valued at $511,890,628.42. This represents a 1.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 128,445 shares of company stock worth $21,211,824 over the last ninety days. Company insiders own 26.90% of the company's stock.

RH 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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