Gary Friedman Sells 7,693 Shares of RH (NYSE:RH) Stock

Key Points

• CEO Gary Friedman sold 7,693 RH shares at an average price of $170.12, generating about $1.31 million in proceeds and trimming his holdings by 0.23%.
• RH reported mixed quarterly results, with EPS of -$1.97 beating estimates and revenue of $800.33 million also topping expectations, though sales still fell 1.7% year over year.
• Sentiment on RH remains cautious but improving: analysts now largely rate the stock “Hold” with a consensus target of $177, while recent coverage included an upgrade from Goldman Sachs and a new design collaboration with Mercedes-AMG PETRONAS Formula One.

RH (NYSE:RH - Get Free Report) CEO Gary Friedman sold 7,693 shares of the company's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $170.12, for a total transaction of $1,308,733.16. Following the completion of the transaction, the chief executive officer directly owned 3,274,575 shares of the company's stock, valued at $557,070,699. This represents a 0.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link.

RH Price Performance

NYSE:RH traded down $1.06 on Wednesday, reaching $162.64. 1,036,636 shares of the company's stock traded hands, compared to its average volume of 1,138,447. The company has a quick ratio of 0.32, a current ratio of 1.13 and a debt-to-equity ratio of 54.96. The stock has a 50-day simple moving average of $144.68 and a 200-day simple moving average of $162.36. The firm has a market cap of $3.07 billion, a PE ratio of 31.40, a P/E/G ratio of 3.88 and a beta of 1.88. RH has a 12 month low of $106.30 and a 12 month high of $257.00.

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

Analyst Ratings Changes

Several research analysts have weighed in on the company. The Goldman Sachs Group upgraded RH from a "sell" rating to a "neutral" rating and upped their price target for the stock from $86.00 to $155.00 in a research note on Wednesday. Morgan Stanley reissued an "overweight" rating and issued a $240.00 target price on shares of RH in a report on Monday, May 11th. Wall Street Zen downgraded RH from a "hold" rating to a "sell" rating in a research report on Saturday, April 4th. Wells Fargo & Company increased their price target on RH from $160.00 to $175.00 and gave the company an "overweight" rating in a research note on Friday, June 12th. Finally, TD Cowen cut their price target on RH from $265.00 to $200.00 and set a "buy" rating for the company in a report on Monday, March 30th. Seven investment 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $177.00.

Hedge Funds Weigh In On RH

Several hedge funds have recently added to or reduced their stakes in the company. 180 Wealth Advisors LLC purchased a new position in RH in the 2nd quarter worth about $273,000. Bank of America Corp DE boosted its position in RH by 166.5% in the 1st quarter. Bank of America Corp DE now owns 238,681 shares of the company's stock valued at $33,372,000 after buying an additional 149,127 shares during the period. RBF Capital LLC purchased a new stake in RH in the 1st quarter valued at about $1,735,000. Lodge Hill Capital LLC bought a new position in RH in the 1st quarter worth about $13,283,000. Finally, California State Teachers Retirement System grew its stake in RH by 23.0% in the 1st quarter. California State Teachers Retirement System now owns 17,460 shares of the company's stock worth $2,441,000 after acquiring an additional 3,262 shares in the last quarter. 90.17% of the stock is currently owned by institutional investors.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH announced a high-profile global design collaboration with Mercedes-AMG PETRONAS Formula One, which could help strengthen brand visibility and support the company’s luxury positioning. Article: RH Chairman & CEO Gary Friedman Reports the Sale of a Small Portion of His RH Common Stock Ownership Position
• Positive Sentiment: A Wall Street analyst reportedly moved away from a bearish stance on RH, adding to the recent upgrade momentum and suggesting some improving sentiment on the stock. Article: This RH Analyst Is No Longer Bearish; Here Are Top 5 Upgrades For Wednesday
• Neutral Sentiment: RH’s latest reported quarterly revenue was $800.3 million, down 1.7% year over year, which shows the business is still facing some top-line pressure even after a recent earnings beat.
• Neutral Sentiment: Some institutional investors have been buying RH while others have reduced exposure, so hedge-fund positioning is mixed rather than clearly bullish or bearish.
• Negative Sentiment: CEO share sales can weigh on investor sentiment, and RH insiders have been net sellers over the past six months, which may reinforce caution around the stock.

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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