RH (NYSE:RH) Stock Crosses Below 200 Day Moving Average - Here's Why

Key Points

• RH shares fell below their 200-day moving average of $146.70, trading as low as $115.66 and last changing hands near $117.47.
• Analysts broadly lowered their price targets, leaving RH with an average “Hold” rating and a consensus target of $164.86; ratings include seven Buys, nine Holds and three Sells.
• Despite beating quarterly earnings estimates with $2.70 in EPS and $922.15 million in revenue, RH reported modest 2.6% year-over-year revenue growth, while insiders sold more than $8.2 million of stock over the past 90 days.

RH (NYSE:RH - Get Free Report) shares passed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $146.70 and traded as low as $115.66. RH shares last traded at $117.4730, with a volume of 860,814 shares.

Analyst Upgrades and Downgrades

RH has been the subject of several analyst reports. Morgan Stanley reduced their price objective 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. Wells Fargo & Company lowered their target price on shares of RH from $225.00 to $175.00 and set an "overweight" rating on the stock in a research report on Friday, September 11th. Bank of America reduced their price target on RH from $156.00 to $114.00 and set an "underperform" rating for the company in a research report on Friday, September 11th. Wall Street Zen upgraded RH from a "sell" rating to a "hold" rating in a research note on Saturday, September 12th. Finally, TD Cowen decreased their price target on RH from $220.00 to $190.00 and set a "buy" rating for the company in a research note on Friday, September 11th. Seven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, RH currently has an average rating of "Hold" and an average target price of $164.86.

RH Stock Performance

The company has a debt-to-equity ratio of 26.57, a quick ratio of 0.37 and a current ratio of 1.12. The stock's 50-day simple moving average is $150.31 and its two-hundred day simple moving average is $146.70. The stock has a market cap of $2.22 billion, a price-to-earnings ratio of 20.90, a price-to-earnings-growth ratio of 2.27 and a beta of 1.91.

RH (NYSE:RH - Get Free Report) last issued its quarterly earnings results on Thursday, September 10th. The company reported $2.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $2.32. RH had a return on equity of 132.79% and a net margin of 3.23%.The company had revenue of $922.15 million for the quarter, compared to the consensus estimate of $915.09 million. During the same period last year, the business posted $2.93 earnings per share. The firm's revenue was up 2.6% compared to the same quarter last year. Analysts forecast that RH will post 5.3 earnings per share for the current year.

Insider Activity at RH

In other news, CEO Gary G. Friedman sold 48,238 shares of the firm's stock in a transaction on 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 sale, the chief executive officer owned 3,226,337 shares in the company, valued at approximately $511,890,628.42. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Mark S. Demilio sold 2,445 shares of the business's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $168.44, for a total transaction of $411,835.80. Following the transaction, the director directly owned 25,680 shares in the company, valued at $4,325,539.20. This trade represents a 8.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 51,683 shares of company stock worth $8,197,277. Company insiders own 26.90% of the company's stock.

Institutional Trading of RH

A number of hedge funds have recently bought and sold shares of the stock. BlackRock Inc. raised 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. Kettle Hill Capital Management LLC acquired a new position in shares of RH in the 4th quarter valued at $28,865,000. Norges Bank acquired a new position in RH in the fourth quarter valued at about $28,092,000. Bank of America Corp DE grew its position in shares of RH by 166.5% during the 1st quarter. Bank of America Corp DE now owns 238,681 shares of the company's stock worth $33,372,000 after buying an additional 149,127 shares during the period. Finally, Renaissance Technologies LLC acquired a new position in shares of RH during the 1st quarter worth about $13,954,000. 90.17% of the stock is owned by institutional investors.

About RH

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality environments. Its offerings include furniture, lighting, textiles, rugs, bath and kitchen fixtures, outdoor furnishings, décor and related design products.

The company markets its products through a multichannel platform that includes large-format RH Galleries, outlet locations, source books, websites and trade services for professional designers.

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.