RH (NYSE:RH) Cut to "Hold" at Telsey Advisory Group

Key Points

• Telsey Advisory Group downgraded RH from an "outperform" rating to a "market perform" rating, with a price target of $220.00, indicating a potential downside of 3.48% from the current price.
• RH's recent earnings report showed a missed consensus estimate, with earnings per share of $2.93, below the expected $3.22, and revenue of $899.15 million, less than the $906.58 million forecasted.
• Institutional investors hold 90.17% of RH's stock, with notable movements including Thrivent Financial increasing its stake by 84.6% during the second quarter.

RH (NYSE:RH - Get Free Report) was downgraded by Telsey Advisory Group from an "outperform" rating to a "hold" rating in a research note issued on Friday, Marketbeat Ratings reports. They currently have a $220.00 target price on the stock. Telsey Advisory Group's price target suggests a potential downside of 1.38% from the company's previous close. Telsey Advisory Group also issued estimates for RH's Q2 2026 earnings at $3.20 EPS, Q3 2026 earnings at $4.11 EPS, Q4 2026 earnings at $3.02 EPS and FY2026 earnings at $10.03 EPS.

Several other brokerages also recently commented on RH. Wells Fargo & Company upped their price target on shares of RH from $275.00 to $295.00 and gave the company an "overweight" rating in a research report on Monday, September 8th. Citigroup raised their target price on RH from $200.00 to $233.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 3rd. Wall Street Zen raised RH from a "sell" rating to a "hold" rating in a research report on Thursday, May 22nd. Guggenheim restated a "buy" rating and set a $300.00 price objective on shares of RH in a research report on Wednesday, July 2nd. Finally, UBS Group dropped their target price on RH from $235.00 to $215.00 and set a "neutral" rating on the stock in a report on Thursday, June 5th. Ten analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $259.29.

RH Price Performance

Shares of NYSE:RH traded up $5.47 on Friday, reaching $223.09. 986,804 shares of the company traded hands, compared to its average volume of 1,262,546. The stock has a market capitalization of $4.18 billion, a PE ratio of 41.54, a P/E/G ratio of 2.09 and a beta of 2.15. The company's 50 day moving average is $218.86 and its 200-day moving average is $206.62. RH has a fifty-two week low of $123.03 and a fifty-two week high of $457.26.

RH (NYSE:RH - Get Free Report) last announced its earnings results on Thursday, September 11th. The company reported $2.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.22 by ($0.29). RH had a negative return on equity of 113.58% and a net margin of 3.20%.The company had revenue of $899.15 million for the quarter, compared to analyst estimates of $906.58 million. During the same period last year, the firm earned $1.69 earnings per share. The firm's revenue for the quarter was up 8.4% on a year-over-year basis. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, analysts expect that RH will post 4.39 EPS for the current year.

Institutional Investors Weigh In On RH

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in RH by 0.6% during the first quarter. Vanguard Group Inc. now owns 1,409,962 shares of the company's stock worth $330,509,000 after buying an additional 7,952 shares during the last quarter. Senvest Management LLC increased its holdings in shares of RH by 54.6% during the 2nd quarter. Senvest Management LLC now owns 733,894 shares of the company's stock valued at $138,713,000 after acquiring an additional 259,200 shares during the last quarter. Durable Capital Partners LP raised its stake in shares of RH by 125.1% in the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company's stock valued at $122,119,000 after acquiring an additional 359,101 shares in the last quarter. Atreides Management LP raised its stake in shares of RH by 69.1% in the 1st quarter. Atreides Management LP now owns 473,321 shares of the company's stock valued at $110,951,000 after acquiring an additional 193,404 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in RH by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 265,762 shares of the company's stock worth $50,240,000 after purchasing an additional 1,829 shares during the last quarter. 90.17% of the stock is currently owned by institutional investors.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.