RealReal (NASDAQ:REAL) Trading Down 3.9% - Time to Sell?

Key Points

• RealReal shares fell 3.9% to about $11.20 in Friday trading, with volume down 60% from the average daily level.
• Analyst sentiment remains generally positive: six analysts rate the stock a Buy, two Hold, and one Sell, producing a “Moderate Buy” consensus and an average price target of $17.75.
• The company exceeded quarterly expectations, reporting a $0.01-per-share loss versus the estimated $0.02 loss and revenue of $192.57 million, up 16.6% year over year. Institutional investors own approximately 64.7% of the stock.

Shares of The RealReal, Inc. (NASDAQ:REAL - Get Free Report) traded down 3.9% on Friday . The stock traded as low as $11.19 and last traded at $11.20. 1,342,727 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 3,339,432 shares. The stock had previously closed at $11.65.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on REAL. BTIG Research restated a "buy" rating and issued a $17.00 target price on shares of RealReal in a research report on Wednesday, June 3rd. Robert W. Baird set a $13.00 price target on shares of RealReal in a research note on Friday, May 8th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RealReal in a research note on Friday, July 17th. UBS Group raised their price objective on RealReal from $14.00 to $16.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Finally, Roth Capital restated a "buy" rating and set a $19.00 target price on shares of RealReal in a report on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, RealReal currently has an average rating of "Moderate Buy" and an average price target of $17.75.

RealReal Stock Down 7.2%

The company has a market cap of $1.32 billion, a P/E ratio of -9.65 and a beta of 2.69. The company has a fifty day moving average of $11.64 and a 200 day moving average of $10.96.

RealReal (NASDAQ:REAL - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.01. The firm had revenue of $192.57 million during the quarter, compared to the consensus estimate of $188.11 million. The firm's revenue for the quarter was up 16.6% compared to the same quarter last year. As a group, research analysts forecast that The RealReal, Inc. will post -0.13 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new position in RealReal during the 2nd quarter valued at about $134,510,000. Vanguard Group Inc. boosted its stake in shares of RealReal by 6.9% during the fourth quarter. Vanguard Group Inc. now owns 6,336,596 shares of the company's stock valued at $99,991,000 after purchasing an additional 406,789 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of RealReal by 58.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company's stock valued at $36,765,000 after acquiring an additional 1,489,939 shares during the period. State Street Corp grew its stake in RealReal by 4.2% in the fourth quarter. State Street Corp now owns 2,746,238 shares of the company's stock valued at $43,336,000 after purchasing an additional 111,677 shares during the last quarter. Finally, Two Sigma Investments LP raised its stake in shares of RealReal by 6.6% during the 3rd quarter. Two Sigma Investments LP now owns 2,628,770 shares of the company's stock worth $27,944,000 after acquiring an additional 162,804 shares in the last quarter. Institutional investors own 64.73% of the company's stock.

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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