RH (NYSE:RH) Price Target Cut to $165.00 by Analysts at Telsey Advisory Group

Key Points

• Telsey Advisory Group cut its price target on RH from $185 to $165 and kept a "market perform" rating; the brokerage's target implies roughly 27.96% upside while the Street consensus remains a "Hold" with a $223.81 average target (8 Buy / 10 Hold / 3 Sell).
• RH faces heightened volatility risk as short interest jumped to about 35.3% of shares outstanding (up 28.3%), and insiders have sold roughly 12,154 shares worth about $2.05M in the past 90 days.
• The stock is trading near $128.95, well below its 1-year high of $264.58 and the consensus target, while the company shows significant leverage with a debt-to-equity ratio of 944.39.

RH (NYSE:RH - Get Free Report) had its price target decreased by research analysts at Telsey Advisory Group from $185.00 to $165.00 in a research report issued on Wednesday, Marketbeat reports. The brokerage currently has a "market perform" rating on the stock. Telsey Advisory Group's price target indicates a potential upside of 27.96% from the stock's previous close.

A number of other equities research analysts have also weighed in on the stock. Weiss Ratings reissued a "sell (d+)" rating on shares of RH in a report on Monday. Robert W. Baird cut their price target on shares of RH from $235.00 to $180.00 and set a "neutral" rating on the stock in a report on Friday, December 12th. JPMorgan Chase & Co. reduced their price objective on shares of RH from $275.00 to $225.00 and set an "overweight" rating on the stock in a research note on Friday, December 19th. Bank of America decreased their price objective on RH from $200.00 to $170.00 and set an "underperform" rating for the company in a report on Friday, December 12th. Finally, Zacks Research raised RH from a "strong sell" rating to a "hold" rating in a research report on Friday, February 13th. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $223.81.

RH Stock Performance

RH stock opened at $128.95 on Wednesday. The business has a 50 day moving average of $183.90 and a 200-day moving average of $183.79. RH has a 1 year low of $123.03 and a 1 year high of $264.58. The company has a debt-to-equity ratio of 944.39, a current ratio of 1.19 and a quick ratio of 0.26. The company has a market capitalization of $2.42 billion, a P/E ratio of 23.28, a P/E/G ratio of 0.54 and a beta of 2.14.

Insiders Place Their Bets

In related news, insider Eri Chaya sold 7,000 shares of RH stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $135.34, for a total transaction of $947,380.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Mark S. Demilio sold 2,254 shares of the business's stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total transaction of $495,880.00. Following the completion of the transaction, the director owned 19,962 shares in the company, valued at approximately $4,391,640. The trade was a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 12,154 shares of company stock worth $2,047,528. Insiders own 27.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Arizona State Retirement System lifted its stake in shares of RH by 1.4% in the 3rd quarter. Arizona State Retirement System now owns 4,434 shares of the company's stock valued at $901,000 after purchasing an additional 62 shares during the period. Steward Partners Investment Advisory LLC grew its stake in RH by 12.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 605 shares of the company's stock worth $114,000 after purchasing an additional 65 shares during the period. Davidson Kahn Capital Management LLC increased its holdings in 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 purchasing an additional 65 shares in the last quarter. Huntington National Bank increased its holdings in RH by 87.8% in the third quarter. Huntington National Bank now owns 139 shares of the company's stock worth $28,000 after purchasing an additional 65 shares in the last quarter. Finally, Farther Finance Advisors LLC lifted its stake in RH by 45.0% in the fourth quarter. Farther Finance Advisors LLC now owns 248 shares of the company's stock valued at $44,000 after buying an additional 77 shares during the period. 90.17% of the stock is owned by institutional investors.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Recent upside in trading after RH outperformed the broader market in the latest session, suggesting some near-term buying interest. Read More.
• Neutral Sentiment: RH is expected to report quarterly earnings this week, a near-term catalyst that could drive volatility depending on sales, margins and guidance. Traders will focus on same-store sales, margin trends and any commentary on demand. Read More.
• Neutral Sentiment: Brokerage consensus is currently a “Hold,” which keeps analyst-driven buy-side pressure limited until clear upside in results or guidance appears. Read More.
• Negative Sentiment: Short interest jumped sharply in March — 4,843,506 shares short as of March 13, up 28.3% from late February — equal to roughly 35.3% of shares outstanding and a days-to-cover of about 3.9. That elevated short position increases downside pressure and raises the potential for volatile moves around the earnings release (and any company-specific news).

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.