RealReal (NASDAQ:REAL) Shares Gap Up on Strong Earnings

Key Points

• RealReal, Inc. shares surged from $5.51 to open at $7.05 following a better-than-expected earnings report that included an EPS of ($0.13), beating estimates of ($0.15).
• Revenue for the quarter was reported at $165.19 million, exceeding analyst expectations of $159.17 million.
• Multiple analysts have raised their price targets for RealReal, with a consensus rating of "Buy" and an average target price of $10.88.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report)'s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $5.51, but opened at $7.05. RealReal shares last traded at $6.48, with a volume of 5,769,955 shares traded.

The company reported ($0.13) earnings per share for the quarter, beating analysts' consensus estimates of ($0.15) by $0.02. The company had revenue of $165.19 million during the quarter, compared to the consensus estimate of $159.17 million.

Analyst Upgrades and Downgrades

REAL has been the topic of a number of recent research reports. B. Riley raised their target price on RealReal from $8.00 to $9.00 and gave the company a "buy" rating in a report on Friday. UBS Group lifted their price target on RealReal from $7.00 to $8.00 and gave the stock a "neutral" rating in a report on Friday. One research analyst has rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $11.13.

Institutional Trading of RealReal

Hedge funds have recently bought and sold shares of the business. Kestra Private Wealth Services LLC increased its position in RealReal by 86.1% in the first quarter. Kestra Private Wealth Services LLC now owns 35,353 shares of the company's stock worth $191,000 after buying an additional 16,353 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in RealReal in the first quarter worth $127,000. G2 Investment Partners Management LLC purchased a new stake in RealReal in the fourth quarter worth $2,709,000. O Shaughnessy Asset Management LLC purchased a new stake in RealReal in the fourth quarter worth $156,000. Finally, XTX Topco Ltd increased its position in RealReal by 133.6% in the first quarter. XTX Topco Ltd now owns 155,988 shares of the company's stock worth $841,000 after buying an additional 89,219 shares during the last quarter. 64.73% of the stock is currently owned by institutional investors.

RealReal Stock Up 16.2%

The stock has a 50-day simple moving average of $5.43 and a 200-day simple moving average of $6.05. The firm has a market capitalization of $723.78 million, a PE ratio of -6.04 and a beta of 2.48.

About RealReal

The RealReal, Inc operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.