RH (NYSE:RH) Cut to Strong Sell at Zacks Research

Key Points

• Equities research analysts at Zacks Research have downgraded RH from a "hold" rating to a "strong sell" rating.
• Other firms, such as UBS Group and Stifel Nicolaus, have also adjusted their price targets and ratings for RH, with UBS reducing its target from $235 to $215.
• RH's recent earnings report showed a miss on EPS expectations and revenue, citing a need for improvement despite a year-over-year revenue increase of 8.4%.

RH (NYSE:RH - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other analysts have also issued research reports about the company. The Goldman Sachs Group lowered RH from a "neutral" rating to a "sell" rating and cut their price objective for the stock from $199.00 to $179.00 in a research report on Tuesday, June 24th. Telsey Advisory Group lowered RH from an "outperform" rating to a "hold" rating and set a $220.00 target price on the stock. in a report on Friday, September 12th. Wells Fargo & Company increased their target price on RH from $275.00 to $295.00 and gave the company an "overweight" rating in a report on Monday, September 8th. Wall Street Zen raised RH from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Finally, Stifel Nicolaus dropped their target price on RH from $390.00 to $320.00 and set a "buy" rating on the stock in a report on Friday, September 12th. Ten equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $259.29.

RH Stock Performance

Shares of RH stock traded down $6.84 during trading hours on Tuesday, reaching $217.86. 1,020,906 shares of the company were exchanged, compared to its average volume of 1,258,705. RH has a 1 year low of $123.03 and a 1 year high of $457.26. The stock's fifty day moving average is $221.01 and its 200 day moving average is $204.56. The firm has a market cap of $4.08 billion, a PE ratio of 40.57, a PEG ratio of 1.07 and a beta of 2.15.

RH (NYSE:RH - Get Free Report) last posted its quarterly earnings data on Thursday, September 11th. The company reported $2.93 earnings per share 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 analysts' expectations of $906.58 million. During the same period in the prior year, the company posted $1.69 EPS. The firm's revenue was up 8.4% compared to the same quarter last year. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts expect that RH will post 4.39 earnings per share for the current year.

Hedge Funds Weigh In On RH

Several hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of 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 purchasing an additional 7,952 shares during the last quarter. Senvest Management LLC grew its holdings in shares of RH by 54.6% during the second quarter. Senvest Management LLC now owns 733,894 shares of the company's stock worth $138,713,000 after purchasing an additional 259,200 shares during the last quarter. Durable Capital Partners LP grew its holdings in shares of RH by 125.1% during the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company's stock worth $122,119,000 after purchasing an additional 359,101 shares during the last quarter. Atreides Management LP grew its holdings in shares of RH by 69.1% during the first quarter. Atreides Management LP now owns 473,321 shares of the company's stock worth $110,951,000 after purchasing an additional 193,404 shares during the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of RH by 0.7% during the second 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. Hedge funds and other institutional investors own 90.17% of the company's stock.

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.