RealReal (NASDAQ:REAL) Trading Up 7.8% - Time to Buy?

Key Points

• Up 7.8% — REAL jumped to $11.32 mid-day (high $11.29) with roughly 892,580 shares traded, about 72% below its average daily volume, indicating the move occurred on light trading.
• Analysts skew positive: MarketBeat shows a consensus Moderate Buy with a $18.06 target after multiple upgrades and raised price targets (KeyCorp to $20, BTIG $18).
• Insider selling has been significant recently — the CEO sold 121,399 shares on Feb. 23 and insiders disposed of 286,883 shares (~$3.0M) in the last quarter, though insiders still own about 9% of the stock.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report) was up 7.8% during mid-day trading on Thursday . The stock traded as high as $11.29 and last traded at $11.32. Approximately 892,580 shares were traded during mid-day trading, a decline of 72% from the average daily volume of 3,190,037 shares. The stock had previously closed at $10.50.

Analysts Set New Price Targets

Several research analysts have issued reports on REAL shares. KeyCorp upped their price target on RealReal from $16.00 to $20.00 and gave the company an "overweight" rating in a report on Thursday, January 22nd. Wall Street Zen raised RealReal from a "hold" rating to a "buy" rating in a report on Saturday, February 28th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RealReal in a report on Thursday, January 22nd. BTIG Research reissued a "buy" rating and set a $18.00 target price on shares of RealReal in a research note on Friday, February 27th. Finally, UBS Group upped their price target on shares of RealReal from $14.00 to $16.00 and gave the stock a "neutral" rating in a research note on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, RealReal has a consensus rating of "Moderate Buy" and a consensus target price of $18.06.

RealReal Stock Up 7.9%

The company has a market cap of $1.35 billion, a price-to-earnings ratio of -10.40 and a beta of 2.81. The company's fifty day moving average price is $10.52 and its two-hundred day moving average price is $12.66.

Insider Activity at RealReal

In other news, CEO Levesque Rati Sahi sold 121,399 shares of the firm'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 transaction of $1,301,397.28. Following the completion of the sale, the chief executive officer owned 1,482,779 shares of the company's stock, valued at approximately $15,895,390.88. This trade represents a 7.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Todd A. Suko sold 45,947 shares of the firm'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 transaction of $492,551.84. Following the completion of the sale, the insider directly owned 560,563 shares of the company's stock, valued at approximately $6,009,235.36. This represents a 7.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 286,883 shares of company stock valued at $3,001,619. Insiders own 9.00% of the company's stock.

Institutional Trading of RealReal

Hedge funds and other institutional investors have recently modified their holdings of the stock. Quarry LP acquired a new stake in shares of RealReal in the third quarter valued at approximately $28,000. Larson Financial Group LLC bought a new position in RealReal in the third quarter valued at approximately $31,000. Flagship Harbor Advisors LLC bought a new position in RealReal in the fourth quarter valued at approximately $71,000. State of Alaska Department of Revenue bought a new position in RealReal in the third quarter valued at approximately $59,000. Finally, Kemnay Advisory Services Inc. bought a new position in RealReal in the fourth quarter valued at approximately $104,000. Institutional investors and hedge funds own 64.73% of the company's stock.

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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