RealReal (NASDAQ:REAL) Stock Price Up 7.3% - Time to Buy?

Key Points

• REAL jumped 7.3% on Monday to about $12.63 on light volume (≈492,905 shares traded vs. a 3.14M average, an 84% decline), after closing at $11.77 the prior session.
• Analyst sentiment is mixed but leaning positive with a consensus rating of “Moderate Buy” and a consensus target price of $18.06 (range of recent targets includes $16 and $20; ratings: 1 Strong Buy, 5 Buy, 2 Hold, 1 Sell).
• Company insiders have been net sellers—286,883 shares (~$3.0M) sold in the last 90 days (insiders own 9% of shares)—while institutional ownership is high at 64.73%, with several funds materially increasing positions.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report) shares rose 7.3% during trading on Monday . The stock traded as high as $12.38 and last traded at $12.6320. Approximately 492,905 shares were traded during mid-day trading, a decline of 84% from the average daily volume of 3,137,015 shares. The stock had previously closed at $11.77.

Analysts Set New Price Targets

REAL has been the subject of several recent analyst reports. Robert W. Baird lifted their price target on RealReal from $15.00 to $16.00 and gave the company a "neutral" rating in a report on Friday, February 27th. Weiss Ratings restated a "sell (d-)" rating on shares of RealReal in a report on Tuesday, April 21st. Northland Securities set a $20.00 price target on RealReal in a report on Wednesday, January 14th. UBS Group lifted their price target on RealReal from $14.00 to $16.00 and gave the company a "neutral" rating in a report on Thursday, January 8th. Finally, Wall Street Zen cut RealReal from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $18.06.

RealReal Trading Up 8.9%

The firm has a market capitalization of $1.54 billion, a price-to-earnings ratio of -11.76 and a beta of 2.84. The firm has a 50 day moving average price of $10.54 and a two-hundred day moving average price of $12.79.

Insider Activity

In other RealReal news, CAO Steve Ming Lo sold 16,962 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $10.72, for a total value of $181,832.64. Following the transaction, the chief accounting officer directly owned 170,236 shares of the company's stock, valued at $1,824,929.92. This represents a 9.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Todd A. Suko sold 45,947 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $10.72, for a total value of $492,551.84. Following the completion of the transaction, the insider directly owned 560,563 shares in the company, valued at approximately $6,009,235.36. The trade was a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 286,883 shares of company stock worth $3,001,619 in the last ninety days. 9.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On RealReal

Institutional investors and hedge funds have recently made changes to their positions in the company. Divisadero Street Capital Management LP grew its stake in RealReal by 652.5% during the 3rd quarter. Divisadero Street Capital Management LP now owns 2,599,801 shares of the company's stock worth $27,636,000 after buying an additional 2,254,300 shares during the last quarter. American Century Companies Inc. grew its stake in RealReal by 3,474.7% during the 3rd quarter. American Century Companies Inc. now owns 1,837,907 shares of the company's stock worth $19,537,000 after buying an additional 1,786,493 shares during the last quarter. Jupiter Asset Management Ltd. grew its stake in RealReal by 501.0% during the 3rd quarter. Jupiter Asset Management Ltd. now owns 1,961,057 shares of the company's stock worth $20,846,000 after buying an additional 1,634,782 shares during the last quarter. Penn Capital Management Company LLC bought a new position in RealReal during the 3rd quarter worth $12,585,000. Finally, BIT Capital GmbH bought a new position in RealReal during the 3rd quarter worth $10,912,000. 64.73% of the stock is owned by institutional investors and hedge funds.

About RealReal

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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