RH (NYSE:RH) Shares Gap Down - Here's What Happened

Key Points

• RH's stock price opened significantly lower at $225.54 on Monday, following a previous close of $243.71, with shares last trading at $228.54.
• Analysts have mixed ratings on RH, with a consensus price target of $270.35, and the stock regarded as a "Hold" by analysts overall.
• RH reported a profit of $0.13 EPS for the last quarter, surpassing expectations, while revenue was $813.95 million, slightly below forecasts.

RH (NYSE:RH - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $243.71, but opened at $225.54. RH shares last traded at $228.54, with a volume of 772,796 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on RH shares. Robert W. Baird lifted their price objective on RH from $215.00 to $230.00 and gave the company a "neutral" rating in a research note on Monday, June 16th. Zelman & Associates dropped their price objective on RH from $305.00 to $251.00 and set an "outperform" rating for the company in a research note on Wednesday, July 9th. Wall Street Zen raised RH from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. Telsey Advisory Group dropped their price objective on RH from $280.00 to $255.00 and set an "outperform" rating for the company in a research note on Monday, June 9th. Finally, Bank of America lifted their price objective on RH from $144.00 to $172.00 and gave the company an "underperform" rating in a research note on Wednesday, May 14th. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $270.35.

RH Stock Down 5.2%

The stock has a 50-day simple moving average of $207.38 and a two-hundred day simple moving average of $222.11. The firm has a market cap of $4.33 billion, a PE ratio of 55.04, a P/E/G ratio of 0.71 and a beta of 2.16.

RH (NYSE:RH - Get Free Report) last released its quarterly earnings data on Thursday, June 12th. The company reported $0.13 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.20. The firm had revenue of $813.95 million for the quarter, compared to the consensus estimate of $817.66 million. RH had a negative return on equity of 67.71% and a net margin of 2.57%.The company's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.40) earnings per share. RH has set its Q2 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.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Newbridge Financial Services Group Inc. purchased a new position in shares of RH in the second quarter worth about $397,000. Marex Group plc purchased a new position in shares of RH in the second quarter worth about $231,000. Hollencrest Capital Management increased its holdings in shares of RH by 18.2% in the second quarter. Hollencrest Capital Management now owns 650 shares of the company's stock worth $123,000 after buying an additional 100 shares during the period. FORA Capital LLC purchased a new position in shares of RH in the second quarter worth about $2,568,000. Finally, Evergreen Capital Management LLC increased its holdings in shares of RH by 3.7% in the second quarter. Evergreen Capital Management LLC now owns 17,243 shares of the company's stock worth $3,259,000 after buying an additional 609 shares during the period. Hedge funds and other 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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