RealReal Sees Unusually High Options Volume (NASDAQ:REAL)

Key Points

• Traders bought an unusually large number of call options on RealReal on Monday — 18,193 calls, a 437% jump from the typical daily volume of 3,386 calls.
• Wall Street sentiment is cautiously positive: RealReal trades at about $12.11 while analysts have a consensus rating of “Moderate Buy” with an average target of $18.06 and several firms raising targets to the $16–$20 range.
• Company insiders have been selling recently: the CFO and CEO sold large blocks (51,585 and 121,399 shares, respectively), with insiders offloading 286,883 shares (~$3.0M) last quarter while still owning about 9% of the stock.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report) was the target of unusually large options trading activity on Monday. Stock traders purchased 18,193 call options on the stock. This is an increase of 437% compared to the typical daily volume of 3,386 call options.

RealReal Price Performance

REAL traded up $0.34 on Monday, reaching $12.11. The company's stock had a trading volume of 2,989,939 shares, compared to its average volume of 3,164,759. The stock has a market cap of $1.46 billion, a price-to-earnings ratio of -11.33 and a beta of 2.84. RealReal has a 1 year low of $4.70 and a 1 year high of $17.39. The business's 50 day moving average is $10.54 and its 200 day moving average is $12.79.

Wall Street Analyst Weigh In

REAL has been the topic of a number of research analyst reports. UBS Group lifted their target price on RealReal from $14.00 to $16.00 and gave the company a "neutral" rating in a report on Thursday, January 8th. Northland Securities set a $20.00 price target on RealReal in a research report on Wednesday, January 14th. KeyCorp boosted their price target on RealReal from $16.00 to $20.00 and gave the company an "overweight" rating in a research report on Thursday, January 22nd. BTIG Research reissued a "buy" rating and set a $18.00 price target on shares of RealReal in a research report on Friday, February 27th. Finally, Robert W. Baird boosted their price target on RealReal from $15.00 to $16.00 and gave the company a "neutral" rating in a research report on Friday, February 27th. One 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 issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $18.06.

Insider Transactions at RealReal

In related news, CFO Gopal Ajay Madan sold 51,585 shares of the company's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $9.29, for a total transaction of $479,224.65. Following the completion of the transaction, the chief financial officer owned 1,179,307 shares of the company's stock, valued at approximately $10,955,762.03. This represents a 4.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Levesque Rati Sahi sold 121,399 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $10.72, for a total transaction of $1,301,397.28. Following the transaction, the chief executive officer directly owned 1,482,779 shares in the company, valued at approximately $15,895,390.88. This represents a 7.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 286,883 shares of company stock valued at $3,001,619 in the last quarter. Insiders own 9.00% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Federated Hermes Inc. bought a new position in RealReal during the 3rd quarter worth approximately $2,177,000. Penn Capital Management Company LLC bought a new position in RealReal during the 3rd quarter worth approximately $12,585,000. BIT Capital GmbH bought a new position in RealReal during the 3rd quarter worth approximately $10,912,000. Tudor Investment Corp ET AL lifted its holdings in RealReal by 25.8% during the 3rd quarter. Tudor Investment Corp ET AL now owns 689,998 shares of the company's stock worth $7,335,000 after buying an additional 141,699 shares during the last quarter. Finally, American Century Companies Inc. lifted its holdings 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. Institutional investors 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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