Investors Purchase High Volume of Call Options on RealReal (NASDAQ:REAL)

Key Points

• Unusual options activity: Investors purchased 5,038 call options on RealReal, 122% above the average daily volume of 2,274 contracts.
• Analyst sentiment remains moderately positive: Six analysts rate the stock a Buy, two rate it Hold and one rates it Sell, producing a consensus “Moderate Buy” rating and a $17.75 target price.
• Shares and insider activity: RealReal shares fell 1.5% to $11.62, while insiders sold 166,830 shares worth about $1.54 million over the past 90 days. The company’s latest quarterly results exceeded estimates, with revenue rising 16.6% year over year to $192.57 million.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report) saw some unusual options trading on Wednesday. Stock traders purchased 5,038 call options on the company. This is an increase of 122% compared to the average daily volume of 2,274 call options.

Wall Street Analyst Weigh In

Several analysts recently commented on REAL shares. BTIG Research reaffirmed a "buy" rating and set a $17.00 target price on shares of RealReal in a report on Wednesday, June 3rd. Weiss Ratings reissued a "sell (d-)" rating on shares of RealReal in a report on Friday, July 17th. Wall Street Zen downgraded shares of RealReal from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Roth Capital restated a "buy" rating and set a $19.00 price objective on shares of RealReal in a report on Friday. Finally, UBS Group upped their target price on RealReal from $14.00 to $16.00 and gave the company a "neutral" rating in a research report on Friday. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $17.75.

Insider Buying and Selling

In other RealReal news, CEO Levesque Rati Sahi sold 81,194 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total transaction of $751,044.50. Following the completion of the sale, the chief executive officer owned 1,581,276 shares of the company's stock, valued at $14,626,803. This trade represents a 4.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Steve Ming Lo sold 12,077 shares of the company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $111,712.25. Following the completion of the transaction, the chief accounting officer owned 189,469 shares in the company, valued at approximately $1,752,588.25. This represents a 5.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 166,830 shares of company stock valued at $1,543,178. Insiders own 2.66% of the company's stock.

Institutional Investors Weigh In On RealReal

Several institutional investors and hedge funds have recently bought and sold shares of REAL. KBC Group NV acquired a new position in shares of RealReal in the 1st quarter valued at approximately $26,000. Quarry LP acquired a new stake in shares of RealReal during the 3rd quarter worth approximately $28,000. Larson Financial Group LLC bought a new position in RealReal in the third quarter valued at approximately $31,000. Gables Capital Management Inc. bought a new position in RealReal in the first quarter valued at approximately $35,000. Finally, Persistent Asset Partners Ltd acquired a new position in RealReal during the second quarter valued at approximately $46,000. Institutional investors own 64.73% of the company's stock.

RealReal Trading Down 1.5%

Shares of NASDAQ:REAL traded down $0.18 on Wednesday, reaching $11.62. 655,287 shares of the company's stock were exchanged, compared to its average volume of 3,361,048. RealReal has a twelve month low of $7.21 and a twelve month high of $17.39. The company has a fifty day moving average of $11.36 and a 200-day moving average of $11.17. The company has a market capitalization of $1.41 billion, a price-to-earnings ratio of -10.37 and a beta of 2.69.

RealReal (NASDAQ:REAL - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.01. The company had revenue of $192.57 million during the quarter, compared to the consensus estimate of $188.11 million. The company's quarterly revenue was up 16.6% compared to the same quarter last year. As a group, equities research analysts forecast that RealReal will post -0.14 EPS for the current fiscal year.

RealReal Company 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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