RH (NYSE:RH) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on RH, with 10 hold, 7 buy and 3 sell ratings among 20 firms. The average 12-month price target is $171.71, close to the reported share price of $174.61.
• RH’s latest quarterly results beat expectations, reporting adjusted EPS of ($1.97) versus estimates of ($2.12) and revenue of $800.33 million versus $792.55 million expected. However, revenue declined 1.7% year over year, highlighting ongoing growth and margin concerns.
• Insider activity was mixed: a director purchased $1.83 million of shares, while the CEO sold $11.71 million; insiders have sold $21.86 million of stock over the past 90 days. Institutional investors own a substantial 90.17% of RH’s outstanding shares.

Shares of RH (NYSE:RH - Get Free Report) have received an average rating of "Hold" from the twenty research firms that are currently covering the firm, MarketBeat reports. Three equities research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and seven have given a buy recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $171.7143.

RH has been the topic of a number of analyst reports. The Goldman Sachs Group upgraded shares of RH from a "sell" rating to a "neutral" rating and raised their price objective for the company from $86.00 to $155.00 in a report on Wednesday, July 8th. Wells Fargo & Company boosted their target price on shares of RH from $160.00 to $175.00 and gave the stock an "overweight" rating in a research note on Friday, June 12th. Barclays dropped their target price on RH from $283.00 to $202.00 and set an "overweight" rating on the stock in a report on Thursday, April 2nd. UBS Group cut their price target on RH from $160.00 to $155.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 9th. Finally, TD Cowen decreased their price target on RH from $265.00 to $200.00 and set a "buy" rating for the company in a report on Monday, March 30th.

RH Stock Performance

Shares of RH opened at $174.61 on Monday. RH has a 1 year low of $106.30 and a 1 year high of $257.00. The stock has a market capitalization of $3.30 billion, a PE ratio of 33.71, a PEG ratio of 4.01 and a beta of 1.88. The company has a debt-to-equity ratio of 54.96, a quick ratio of 0.32 and a current ratio of 1.13. The stock has a 50-day simple moving average of $156.38 and a 200-day simple moving average of $161.73.

RH (NYSE:RH - Get Free Report) last released its earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share for the quarter, topping analysts' consensus estimates of ($2.12) by $0.15. The firm had revenue of $800.33 million for the quarter, compared to analyst estimates of $792.55 million. RH had a net margin of 3.01% and a return on equity of 423.79%. The business's quarterly revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.13 earnings per share. On average, analysts predict that RH will post 4.27 earnings per share for the current fiscal year.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: William Blair reiterated a Buy rating on RH, citing strengthening fundamentals and a multiyear profit growth outlook, which can help support investor confidence. Robert Half Wins Buy Rating on Strengthening Fundamentals and Multiyear Profit Growth Outlook
• Positive Sentiment: RH announced two leadership moves, including the promotion of Sandy Pilon to Chief Customer Experience & Values Officer and the appointment of Ryan Hassanein as Chief Legal & Compliance Officer, suggesting continued internal investment in operations and governance. RH Announces the Promotion of Sandy Pilon to Chief Customer Experience & Values Officer
• Neutral Sentiment: RH did not release new financial results in the highlighted items, so near-term trading is likely being driven more by analyst commentary and management changes than by a fresh earnings update.
• Negative Sentiment: Investors may still be weighing RH’s recent softer earnings picture, including revenue down 1.7% year over year and EPS of ($1.97), even though both figures beat expectations. This can limit upside if the market focuses on margin pressure and slower growth.

Insider Activity

In other RH news, Director Carlos Alberini bought 11,388 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The stock was purchased at an average price of $160.90 per share, for a total transaction of $1,832,329.20. Following the completion of the purchase, the director directly owned 32,190 shares in the company, valued at $5,179,371. This trade represents a 54.74% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gary G. Friedman sold 69,069 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $169.48, for a total transaction of $11,705,814.12. Following the completion of the transaction, the chief executive officer owned 3,282,268 shares in the company, valued at $556,278,780.64. This represents a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 132,749 shares of company stock worth $21,856,812. 26.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of RH. Durable Capital Partners LP lifted its position in RH by 125.1% in the second 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 during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in shares of RH by 1,797.7% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 246,355 shares of the company's stock worth $44,134,000 after purchasing an additional 233,373 shares during the last quarter. Alliancebernstein L.P. grew its holdings in shares of RH by 66.1% during the third quarter. Alliancebernstein L.P. now owns 573,666 shares of the company's stock worth $116,546,000 after purchasing an additional 228,229 shares during the last quarter. Alyeska Investment Group L.P. increased its position in shares of RH by 200.5% during the third quarter. Alyeska Investment Group L.P. now owns 297,694 shares of the company's stock worth $60,480,000 after purchasing an additional 198,615 shares in the last quarter. Finally, Senvest Management LLC increased its position in shares of RH by 30.1% during the fourth quarter. Senvest Management LLC now owns 842,577 shares of the company's stock worth $150,948,000 after purchasing an additional 194,773 shares in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.