RealReal (NASDAQ:REAL) Shares Climb 12.9% - What's Next?

Key Points

• RealReal shares surged 12.9% to $14.535, with trading volume 34% above its daily average.
• Analysts maintain a “Moderate Buy” consensus with a $17.50 average price target, though ratings range from Buy to Sell and UBS recently cut its target to $14.
• Latest quarterly results beat estimates: EPS was $0.02 versus consensus expectations of a loss, while revenue of $206.12 million exceeded forecasts and rose 18.7% year over year.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report)'s share price rose 12.9% on Monday. The stock traded as high as $14.27 and last traded at $14.5350. Approximately 4,490,874 shares were traded during trading, an increase of 34% from the average daily volume of 3,354,527 shares. The stock had previously closed at $12.87.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on REAL. Weiss Ratings reiterated a "sell (d-)" rating on shares of RealReal in a report on Thursday, October 15th. Wall Street Zen upgraded RealReal from a "hold" rating to a "buy" rating in a research note on Saturday, October 31st. UBS Group dropped their price target on RealReal from $16.00 to $14.00 and set a "neutral" rating on the stock in a research report on Thursday, October 22nd. Roth Capital reaffirmed a "buy" rating and issued a $19.00 price target on shares of RealReal in a research note on Friday, October 16th. Finally, BTIG Research reiterated a "buy" rating and issued a $17.00 price objective on shares of RealReal in a report on Thursday, September 17th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $17.50.

RealReal Stock Performance

The firm has a 50-day moving average price of $10.20 and a 200-day moving average price of $10.96. The stock has a market cap of $1.82 billion, a PE ratio of -21.74 and a beta of 2.85.

RealReal (NASDAQ:REAL - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $0.02 earnings per share (EPS) for the quarter. The firm had revenue of $206.12 million during the quarter, compared to the consensus estimate of $196.89 million. The business's revenue for the quarter was up 18.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.09) EPS. As a group, sell-side analysts anticipate that The RealReal, Inc. will post -0.10 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Levesque Sahi sold 84,432 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $10.98, for a total value of $927,063.36. Following the transaction, the chief executive officer directly owned 1,496,844 shares of the company's stock, valued at approximately $16,435,347.12. This represents a 5.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Steve Lo sold 12,559 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $10.97, for a total value of $137,772.23. Following the completion of the transaction, the chief accounting officer directly owned 176,910 shares in the company, valued at $1,940,702.70. This trade represents a 6.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 173,004 shares of company stock worth $1,899,283 over the last 90 days. 2.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. KBC Group NV bought a new position in RealReal during the 1st quarter valued at about $26,000. Gables Capital Management Inc. bought a new stake in shares of RealReal in the first quarter worth approximately $35,000. Persistent Asset Partners Ltd purchased a new position in shares of RealReal during the second quarter valued at approximately $46,000. Integrated Wealth Concepts LLC purchased a new position in shares of RealReal during the second quarter valued at approximately $50,000. Finally, Allworth Financial LP purchased a new position in shares of RealReal during the second quarter valued at approximately $53,000. 64.73% of the stock is owned by institutional investors.

RealReal Company Profile

The RealReal, Inc operates an online and physical marketplace for authenticated, pre-owned luxury goods. Through its platform, the company enables individuals and businesses to consign and purchase items across categories such as apparel, handbags, shoes, jewelry, watches, fine art, and home furnishings.

The company combines consignment services with in-house authentication, merchandising, photography, fulfillment, and customer support. Its authentication process is designed to assess the legitimacy and condition of products before they are offered for sale, helping connect sellers with buyers seeking luxury items through the resale market.

Founded in 2011 by Julie Wainwright, The RealReal serves customers primarily in the United States through its website, mobile applications, and retail locations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.