RH (NYSE:RH) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts rate RH “Hold” overall: Of 20 analysts, 10 recommend holding, seven recommend buying and three recommend selling. The average 12-month price target is $173.36.
• RH shares opened at $156.77, down 7.8%: JPMorgan cut its price target to $212 while maintaining an overweight rating, and other brokerages generally kept neutral or sector-weight ratings amid concerns about discretionary spending and market volatility.
• Quarterly results modestly exceeded expectations: RH reported an adjusted loss of $1.97 per share versus the $2.12 consensus estimate and revenue of $800.33 million, though sales declined 1.7% year over year. The CEO recently sold about $11.7 million in shares, while a director purchased approximately $1.8 million.

RH (NYSE:RH - Get Free Report) has earned a consensus recommendation of "Hold" from the twenty research firms that are covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have issued a buy rating on the company. The average 12 month price target among analysts that have covered the stock in the last year is $173.3571.

A number of brokerages recently commented on RH. Robert W. Baird lifted their price objective on RH from $125.00 to $150.00 and gave the stock a "neutral" rating in a research report on Friday, June 12th. Citigroup upped their target price on shares of RH from $150.00 to $166.00 and gave the company a "neutral" rating in a research report on Monday, June 15th. JPMorgan Chase & Co. reduced their target price on shares of RH from $225.00 to $212.00 and set an "overweight" rating on the stock in a research note on Monday. The Goldman Sachs Group upgraded shares of RH from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $86.00 to $155.00 in a research report on Wednesday, July 8th. Finally, KeyCorp reissued a "sector weight" rating on shares of RH in a research note on Friday, June 12th.

Key Headlines Impacting RH

Here are the key news stories impacting RH this week:

• Negative Sentiment: JPMorgan issued a pessimistic forecast for RH, adding pressure to the stock and reinforcing concerns about its outlook. The report’s negative stance is particularly relevant given RH’s elevated volatility and valuation. JPMorgan Chase & Co. Issues Pessimistic Forecast for RH Stock Price
• Negative Sentiment: RH was cited among home-related retail stocks under pressure as investors grew more cautious about discretionary spending, higher bond yields and the broader consumer outlook. The move appears largely market- and sector-driven, with no new RH operational announcement identified. Why Wayfair Shares Fell Today

RH Stock Down 7.8%

NYSE:RH opened at $156.77 on Friday. The company has a market cap of $2.96 billion, a price-to-earnings ratio of 30.26, a P/E/G ratio of 3.98 and a beta of 1.87. 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's fifty day moving average price is $169.50 and its two-hundred day moving average price is $156.43. RH has a 52-week low of $106.30 and a 52-week high of $257.00.

RH (NYSE:RH - Get Free Report) last released its earnings results on Thursday, June 11th. The company reported ($1.97) EPS for the quarter, beating the consensus estimate of ($2.12) by $0.15. RH had a return on equity of 423.79% and a net margin of 3.01%.The company had revenue of $800.33 million during the quarter, compared to analysts' expectations of $792.55 million. During the same period last year, the firm earned $0.13 EPS. The business's revenue for the quarter was down 1.7% on a year-over-year basis. On average, analysts anticipate that RH will post 4.27 EPS for the current year.

Insider Buying and Selling at RH

In other RH news, CEO Gary G. Friedman sold 69,069 shares of RH stock in a transaction 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 sale, the chief executive officer owned 3,282,268 shares of the company's stock, valued at approximately $556,278,780.64. The trade was a 2.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Carlos Alberini bought 11,388 shares of the stock in a transaction on Monday, June 29th. The shares were acquired at an average cost of $160.90 per share, with a total value of $1,832,329.20. Following the acquisition, the director directly owned 32,190 shares in the company, valued at approximately $5,179,371. This trade represents a 54.74% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have sold 132,749 shares of company stock valued at $21,856,812. 26.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On RH

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. raised its position in shares of RH by 41.7% in the 2nd quarter. BlackRock Inc. now owns 1,978,271 shares of the company's stock valued at $325,881,000 after acquiring an additional 581,710 shares during the period. Durable Capital Partners LP boosted its stake in RH by 125.1% during the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company's stock worth $122,119,000 after acquiring an additional 359,101 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in RH by 1,797.7% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 246,355 shares of the company's stock valued at $44,134,000 after purchasing an additional 233,373 shares during the period. Alliancebernstein L.P. grew its holdings in RH by 66.1% during the third quarter. Alliancebernstein L.P. now owns 573,666 shares of the company's stock valued at $116,546,000 after purchasing an additional 228,229 shares during the period. Finally, Alyeska Investment Group L.P. increased its stake in RH by 200.5% in the third quarter. Alyeska Investment Group L.P. now owns 297,694 shares of the company's stock valued at $60,480,000 after purchasing an additional 198,615 shares in the last quarter. 90.17% of the stock is owned by institutional investors and hedge funds.

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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