RH (NYSE:RH) Shares Down 6.6% - Time to Sell?

Key Points

• RH shares fell by 6.6% during trading, closing at $186.20 after a significant drop from a previous close of $199.26.
• Research analysts remain divided on RH, with 10 Buy ratings, 7 Hold ratings, and 4 Sell ratings, while the average target price stands at $259.29.
• The company reported a net loss this quarter with earnings per share of $2.93, missing estimates and showing a substantial decline compared to last year's earnings.

RH (NYSE:RH - Get Free Report) shares were down 6.6% during trading on Thursday . The company traded as low as $184.84 and last traded at $186.20. Approximately 1,073,718 shares traded hands during trading, a decline of 16% from the average daily volume of 1,284,482 shares. The stock had previously closed at $199.26.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on RH shares. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of RH in a research report on Wednesday. Zelman & Associates cut their price objective on shares of RH from $305.00 to $251.00 and set an "outperform" rating for the company in a research report on Wednesday, July 9th. Guggenheim reaffirmed a "buy" rating and set a $300.00 price objective on shares of RH in a research report on Friday, September 12th. William Blair lowered shares of RH from an "outperform" rating to a "market perform" rating in a research report on Thursday, October 2nd. Finally, TD Cowen upped their price objective on shares of RH from $235.00 to $265.00 and gave the company a "buy" rating in a research report on Friday, September 12th. Ten equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $259.29.

RH Price Performance

The company's 50-day moving average price is $220.45 and its 200-day moving average price is $202.29. The company has a market cap of $3.48 billion, a P/E ratio of 34.55, a P/E/G ratio of 0.95 and a beta of 2.23.

RH (NYSE:RH - Get Free Report) last issued its quarterly earnings data on Thursday, September 11th. The company reported $2.93 earnings per share (EPS) for the quarter, missing the consensus estimate 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 the consensus estimate of $906.58 million. During the same period in the prior year, the company earned $1.69 EPS. The firm's revenue was up 8.4% on a year-over-year basis. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, equities research analysts predict that RH will post 4.39 EPS for the current year.

Insider Transactions at RH

In other RH news, Director Mark S. Demilio sold 2,000 shares of RH stock in a transaction on Friday, September 19th. The shares were sold at an average price of $236.13, for a total value of $472,260.00. Following the sale, the director directly owned 24,616 shares in the company, valued at approximately $5,812,576.08. The trade was a 7.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 27.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its position in shares of RH by 0.6% in the 1st quarter. Vanguard Group Inc. now owns 1,409,962 shares of the company's stock valued at $330,509,000 after acquiring an additional 7,952 shares during the period. Senvest Management LLC grew its position in shares of RH by 54.6% in the 2nd quarter. Senvest Management LLC now owns 733,894 shares of the company's stock valued at $138,713,000 after acquiring an additional 259,200 shares during the period. Durable Capital Partners LP grew its position in shares of RH by 125.1% in the 2nd 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 period. Atreides Management LP grew its position in shares of RH by 69.1% in the 1st quarter. Atreides Management LP now owns 473,321 shares of the company's stock valued at $110,951,000 after acquiring an additional 193,404 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of RH by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 265,762 shares of the company's stock valued at $50,240,000 after acquiring an additional 1,829 shares during the period. Institutional investors own 90.17% of the company's stock.

RH Company Profile

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.

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