RH (NYSE:RH) Given Average Rating of "Hold" by Brokerages

Key Points

• RH has a consensus analyst rating of "Hold" from 20 covering firms, with five sells, eight holds, and seven buys. The average 12-month price target is about $176.47.
• The company reported weaker-than-expected Q1 results, posting EPS of $1.53 versus estimates of $2.21 and revenue of $842.62 million versus expectations of $873.48 million. Revenue still rose 3.7% year over year, but the earnings miss weighed on sentiment.
• Recent analyst actions have been mixed, though Morgan Stanley reiterated an overweight rating with a $240 target, while others cut ratings or price targets. The stock also saw insider selling and trades around $131.61, well below its 52-week high of $257.00.

Shares of RH (NYSE:RH - Get Free Report) have been given a consensus rating of "Hold" by the twenty ratings firms that are covering the company, MarketBeat Ratings reports. Five research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $176.4667.

Several analysts have recently issued reports on the stock. Zelman & Associates reiterated an "outperform" rating on shares of RH in a research report on Thursday, January 29th. BNP Paribas Exane decreased their price target on shares of RH from $130.00 to $96.00 and set a "strong sell" rating on the stock in a research note on Wednesday, April 1st. Morgan Stanley reiterated an "overweight" rating and issued a $240.00 price objective on shares of RH in a report on Monday. Weiss Ratings lowered RH from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, April 29th. Finally, Zacks Research cut RH from a "hold" rating to a "strong sell" rating in a report on Thursday, April 2nd.

RH Trading Up 1.9%

Shares of RH stock opened at $131.61 on Wednesday. RH has a 1-year low of $106.30 and a 1-year high of $257.00. The company has a market cap of $2.49 billion, a price-to-earnings ratio of 20.86, a PEG ratio of 1.98 and a beta of 1.89. The company has a debt-to-equity ratio of 51.28, a current ratio of 1.19 and a quick ratio of 0.31. The stock has a 50 day simple moving average of $132.95 and a 200-day simple moving average of $166.34.

RH (NYSE:RH - Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The company reported $1.53 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.21 by ($0.68). The company had revenue of $842.62 million during the quarter, compared to analyst estimates of $873.48 million. RH had a net margin of 3.63% and a negative return on equity of 567.82%. RH's revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the business posted $1.58 EPS. On average, equities research analysts expect that RH will post 6.39 EPS for the current fiscal year.

RH News Summary

Here are the key news stories impacting RH this week:

• Positive Sentiment: Morgan Stanley reaffirmed its Buy rating on RH and maintained a $240 price target, signaling confidence that headwinds are easing and the stock could recover if fundamentals improve.
• Neutral Sentiment: RH also drew investor attention after Insider Monkey noted it as one of Larry Robbins’ selected retail names, which may keep the stock in focus but does not change the operating outlook on its own.
• Negative Sentiment: Recent Zacks coverage highlighted that RH shares declined in the latest session, reflecting ongoing investor concern after the company’s prior earnings miss and softer-than-expected revenue.

Insider Activity at RH

In related news, insider Eri Chaya sold 11,000 shares of the business's stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total transaction of $1,517,120.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold 25,000 shares of company stock worth $3,370,440 in the last three months. 26.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RH. Arizona State Retirement System grew its holdings in shares of RH by 1.4% during the third quarter. Arizona State Retirement System now owns 4,434 shares of the company's stock worth $901,000 after buying an additional 62 shares in the last quarter. Davidson Kahn Capital Management LLC lifted its stake in shares of RH by 0.5% in the third quarter. Davidson Kahn Capital Management LLC now owns 12,437 shares of the company's stock worth $2,531,000 after buying an additional 65 shares in the last quarter. Huntington National Bank boosted its position in RH by 87.8% during the third quarter. Huntington National Bank now owns 139 shares of the company's stock worth $28,000 after acquiring an additional 65 shares during the last quarter. Farther Finance Advisors LLC boosted its position in RH by 45.0% during the fourth quarter. Farther Finance Advisors LLC now owns 248 shares of the company's stock worth $44,000 after acquiring an additional 77 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its stake in RH by 1.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 5,122 shares of the company's stock valued at $1,041,000 after acquiring an additional 81 shares in the last quarter. Hedge funds and other institutional investors own 90.17% of the company's stock.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH's product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.

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