Insider Selling: RH (NYSE:RH) CEO Sells 48,238 Shares of Stock

Key Points

• RH CEO Gary Friedman sold 48,238 shares on July 8 at an average price of $158.66, for proceeds of about $7.65 million. After the sale, he still held 3.23 million shares, and the transaction reduced his stake by 1.47%.
• RH shares slipped slightly in trading, ending at $162.64, while the stock remains volatile with a 52-week range of $106.30 to $257.00. The company also carries notable leverage, with a debt-to-equity ratio of 54.96.
• Analyst sentiment is mixed but improving, with the consensus rating at “Hold” and an average price target of $177.00. Recent developments include price-target increases and a global design collaboration with Mercedes-AMG PETRONAS Formula One, though recent revenue still fell 1.7% year over year.

RH (NYSE:RH - Get Free Report) CEO Gary Friedman sold 48,238 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $158.66, for a total value of $7,653,441.08. Following the completion of the transaction, the chief executive officer owned 3,226,337 shares in the company, valued at $511,890,628.42. This trade represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

RH Stock Performance

Shares of RH stock traded down $1.06 during trading hours on Wednesday, hitting $162.64. 1,036,636 shares of the company were exchanged, compared to its average volume of 1,138,447. The company has a current ratio of 1.13, a quick ratio of 0.32 and a debt-to-equity ratio of 54.96. The business has a 50-day moving average of $144.68 and a 200-day moving average of $162.36. RH has a 1 year low of $106.30 and a 1 year high of $257.00. The stock has a market capitalization of $3.07 billion, a price-to-earnings ratio of 31.40, a P/E/G ratio of 3.88 and a beta of 1.88.

RH (NYSE:RH - Get Free Report) last posted its quarterly earnings data on Thursday, June 11th. The company reported ($1.97) earnings per share for the quarter, beating analysts' consensus estimates of ($2.12) by $0.15. The firm 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 quarterly revenue was down 1.7% on a year-over-year basis. During the same period last year, the firm posted $0.13 EPS. As a group, analysts expect that RH will post 4.27 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on RH shares. Citigroup boosted their price target on shares of RH from $150.00 to $166.00 and gave the stock a "neutral" rating in a research note on Monday, June 15th. The Goldman Sachs Group upgraded shares of RH from a "sell" rating to a "neutral" rating and raised their price objective for the company from $86.00 to $155.00 in a research report on Wednesday. Stifel Nicolaus lifted their price objective on RH from $110.00 to $130.00 and gave the company a "hold" rating in a report on Friday, June 12th. Barclays dropped their target price on RH from $283.00 to $202.00 and set an "overweight" rating on the stock in a research report on Thursday, April 2nd. Finally, Morgan Stanley reissued an "overweight" rating and set a $240.00 target price on shares of RH in a research note on Monday, May 11th. Seven analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, RH has an average rating of "Hold" and a consensus price target of $177.00.

Key Headlines Impacting RH

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.

Institutional Trading of RH

Several hedge funds and other institutional investors have recently made changes to their positions in RH. Farther Finance Advisors LLC boosted its holdings in RH by 45.0% during the fourth quarter. Farther Finance Advisors LLC now owns 248 shares of the company's stock worth $44,000 after buying an additional 77 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in RH by 1.6% in the third quarter. Public Employees Retirement System of Ohio now owns 5,122 shares of the company's stock valued at $1,041,000 after buying an additional 81 shares in the last quarter. CWM LLC increased its holdings in RH by 22.7% in the fourth quarter. CWM LLC now owns 492 shares of the company's stock valued at $88,000 after buying an additional 91 shares in the last quarter. US Bancorp DE lifted its position in shares of RH by 30.8% during the 3rd quarter. US Bancorp DE now owns 416 shares of the company's stock valued at $85,000 after acquiring an additional 98 shares during the period. Finally, Oregon Public Employees Retirement Fund lifted its position in shares of RH by 3.3% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 3,170 shares of the company's stock valued at $443,000 after acquiring an additional 100 shares during the period. Institutional investors and hedge funds own 90.17% of the company's stock.

About RH

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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