RealReal (NASDAQ:REAL) Stock Price Down 7.7% - What's Next?

Key Points

• Shares fell 7.7% intraday to about $10.44 on Monday, with trading volume of 810,862 shares—roughly 75% below the average session volume.
• Analysts have generally raised price targets and ratings (many boosting targets into the $16–$20 range); the consensus rating is a "Moderate Buy" with an average price target of $18.06.
• Company insiders (including the CEO and CFO) have recently sold stock—235,298 shares worth $2.52M over the last 90 days—while institutional investors hold about 64.7% of the shares.

Shares of The RealReal, Inc. (NASDAQ:REAL - Get Free Report) fell 7.7% during trading on Monday . The company traded as low as $10.27 and last traded at $10.44. 810,862 shares were traded during trading, a decline of 75% from the average session volume of 3,240,808 shares. The stock had previously closed at $11.31.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. UBS Group raised their price objective on RealReal from $14.00 to $16.00 and gave the stock a "neutral" rating in a research note on Thursday, January 8th. KeyCorp boosted their price target on RealReal from $16.00 to $20.00 and gave the stock an "overweight" rating in a research report on Thursday, January 22nd. Wells Fargo & Company upped their price objective on RealReal from $15.00 to $20.00 and gave the stock an "overweight" rating in a research note on Tuesday, December 16th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RealReal in a research report on Thursday, January 22nd. Finally, B. Riley Financial lifted their target price on RealReal from $14.00 to $17.00 and gave the company a "buy" rating in a research note on Friday, December 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $18.06.

RealReal Price Performance

The company's fifty day simple moving average is $14.07 and its 200-day simple moving average is $12.57. The firm has a market capitalization of $1.24 billion, a PE ratio of -9.56 and a beta of 2.68.

Insider Activity at RealReal

In other RealReal news, CFO Gopal Ajay Madan sold 31,381 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $10.72, for a total value of $336,404.32. Following the completion of the sale, the chief financial officer directly owned 1,124,711 shares in the company, valued at approximately $12,056,901.92. This trade represents a 2.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Levesque Rati Sahi sold 121,399 shares of the firm's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $10.72, for a total value of $1,301,397.28. Following the completion of the sale, the chief executive officer directly owned 1,482,779 shares of the company's stock, valued at approximately $15,895,390.88. This represents a 7.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 235,298 shares of company stock worth $2,522,395 over the last ninety days. Corporate insiders own 9.00% of the company's stock.

Institutional Investors Weigh In On RealReal

Several institutional investors and hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its position in shares of RealReal by 589.2% in the 1st quarter. AQR Capital Management LLC now owns 887,997 shares of the company's stock valued at $4,786,000 after acquiring an additional 759,160 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of RealReal by 6.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,437 shares of the company's stock valued at $326,000 after purchasing an additional 3,500 shares during the period. Millennium Management LLC lifted its holdings in shares of RealReal by 1.9% during the first quarter. Millennium Management LLC now owns 883,690 shares of the company's stock worth $4,763,000 after purchasing an additional 16,136 shares during the period. Teacher Retirement System of Texas boosted its position in RealReal by 217.7% in the second quarter. Teacher Retirement System of Texas now owns 35,769 shares of the company's stock valued at $171,000 after buying an additional 24,512 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. increased its holdings in RealReal by 49.8% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,016,843 shares of the company's stock worth $4,871,000 after buying an additional 337,954 shares during the period. 64.73% of the stock is currently owned by institutional investors and hedge funds.

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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