RH (NYSE:RH) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded RH from a "hold" to a "sell," amid a wave of analyst target cuts; MarketBeat shows a consensus rating of "Hold" with a $180.20 target (7 Buy / 9 Hold / 4 Sell).
• RH missed Q4 estimates — adjusted EPS $1.53 vs. $2.21 expected and revenue $842.6M vs. $873.5M — and management flagged near‑term margin pressure as it invests in global expansion, triggering analyst downgrades and selling pressure.
• Insider selling has accelerated (29,254 shares sold, ~$4.3M in the last 90 days, including 11,000 shares by Eri Chaya) while the stock trades around $113.49 (52‑week high $257), adding to investor concern despite ~90% institutional ownership.

RH (NYSE:RH - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Other equities research analysts have also issued research reports about the company. Jefferies Financial Group reaffirmed a "hold" rating on shares of RH in a research report on Tuesday, January 27th. Bank of America cut their target price on shares of RH from $200.00 to $170.00 and set an "underperform" rating on the stock in a research note on Friday, December 12th. Guggenheim reduced their target price on shares of RH from $275.00 to $200.00 and set a "buy" rating on the stock in a report on Wednesday. JPMorgan Chase & Co. decreased their price target on shares of RH from $275.00 to $225.00 and set an "overweight" rating for the company in a research note on Friday, December 19th. Finally, Zelman & Associates reiterated an "outperform" rating on shares of RH in a report on Thursday, January 29th. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $180.20.

RH Stock Performance

NYSE:RH opened at $113.49 on Friday. RH has a 52 week low of $106.30 and a 52 week high of $257.00. The company has a fifty day simple moving average of $167.84 and a two-hundred day simple moving average of $178.73. The company has a quick ratio of 0.26, a current ratio of 1.19 and a debt-to-equity ratio of 51.28. The company has a market cap of $2.14 billion, a price-to-earnings ratio of 17.99, a price-to-earnings-growth ratio of 1.22 and a beta of 2.10.

RH (NYSE:RH - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The company reported $1.53 earnings per share (EPS) for the quarter, missing the consensus estimate 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%. The firm's revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.58 earnings per share. As a group, equities analysts anticipate that RH will post 4.39 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Eri Chaya sold 11,000 shares of the stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total value of $1,517,120.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Mark S. Demilio sold 2,254 shares of the firm's stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total value of $495,880.00. Following the sale, the director directly owned 19,962 shares in the company, valued at $4,391,640. This trade represents a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 29,254 shares of company stock valued at $4,306,520. Insiders own 27.00% of the company's stock.

Institutional Trading of RH

Institutional investors have recently modified their holdings of the stock. Hsbc Holdings PLC grew its position in shares of RH by 41.5% in the 4th quarter. Hsbc Holdings PLC now owns 5,649 shares of the company's stock valued at $1,015,000 after buying an additional 1,656 shares during the last quarter. Rockefeller Capital Management L.P. lifted its position in RH by 37.8% in the fourth quarter. Rockefeller Capital Management L.P. now owns 133,676 shares of the company's stock valued at $23,948,000 after acquiring an additional 36,691 shares during the last quarter. Corient Private Wealth LLC purchased a new stake in RH in the fourth quarter valued at $287,000. Invesco Ltd. boosted its stake in RH by 29.3% in the fourth quarter. Invesco Ltd. now owns 37,409 shares of the company's stock valued at $6,702,000 after acquiring an additional 8,468 shares in the last quarter. Finally, Alberta Investment Management Corp acquired a new position in RH in the fourth quarter valued at $1,397,000. Hedge funds and other institutional investors own 90.17% of the company's stock.

More RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some large brokers remain constructive or keep overweight/buy ratings despite lower targets, which supports short‑term buying interest and stabilizes the stock. Read More.
• Positive Sentiment: Value/“buy‑the‑dip” commentary argues the pullback may present a long‑term entry given RH’s brand and growth plan, attracting opportunistic investors. Read More.
• Neutral Sentiment: Citigroup cut its price target from $183 to $150 and set a neutral rating — reduces upside expectations but is not a sell call, which can temper further liquidation. Read More.
• Neutral Sentiment: RH reiterated its long‑term expansion strategy (global gallery openings, higher pre‑opening costs). Management frames near‑term margin pressure as deliberate investment for growth — explains elevated spending but increases execution risk. Read More.
• Negative Sentiment: Q4 miss drove the sell‑off: adjusted EPS $1.53 vs. ~$2.21 consensus and revenue $842.6M vs. ~$873.5M; management cited tariff/resourcing and weather headwinds. That earnings miss triggered analyst cuts and selling pressure. Read More.
• Negative Sentiment: Cautious FY2026 outlook: management guided modest revenue growth and lower adjusted EBITDA margins as it ramps global expansion and funds pre‑openings — implies near‑term margin compression and slower cash generation. Read More.
• Negative Sentiment: Analyst downgrades and lower targets from multiple houses (BNP Paribas Exane, Wells Fargo and others) amplify downside pressure and reduce conviction among institutional holders. Read More.
• Negative Sentiment: Insider selling: director/insider Eri Chaya sold multiple blocks (11,000 shares on Mar 31 plus earlier sales), which investors often view as a negative signal; a shareholder law firm has also announced an investigation that can add short‑term uncertainty. Read More. Read More.
• Negative Sentiment: Macro/industry headwinds: RH’s CEO warned of a worsening housing market and declining mortgage applications, which could weigh on demand for high‑end home furnishings. Read More.

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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