RH (NYSE:RH) Shares Gap Up on Earnings Beat

RH (NYSE:RH - Get Free Report)'s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $176.87, but opened at $211.00. RH shares last traded at $198.77, with a volume of 2,607,583 shares traded.

The company reported $0.13 EPS for the quarter, beating analysts' consensus estimates of ($0.07) by $0.20. RH had a negative return on equity of 35.72% and a net margin of 2.25%. The firm had revenue of $813.95 million for the quarter, compared to analyst estimates of $817.66 million. During the same period in the prior year, the firm posted ($0.40) EPS. The company's revenue for the quarter was up 12.0% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on RH shares. Barclays decreased their price objective on RH from $515.00 to $436.00 and set an "overweight" rating on the stock in a report on Thursday, April 3rd. Bank of America upped their price objective on RH from $144.00 to $172.00 and gave the company an "underperform" rating in a report on Wednesday, May 14th. Guggenheim decreased their price objective on RH from $500.00 to $300.00 and set a "buy" rating on the stock in a report on Thursday, April 3rd. Robert W. Baird decreased their price objective on RH from $400.00 to $215.00 and set a "neutral" rating on the stock in a report on Thursday, April 3rd. Finally, Stifel Nicolaus reduced their target price on RH from $450.00 to $390.00 and set a "buy" rating on the stock in a report on Monday, April 7th. Two analysts have rated the stock with a sell rating, six have issued a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, RH currently has an average rating of "Hold" and a consensus target price of $270.00.

Institutional Trading of RH

Large investors have recently bought and sold shares of the business. Sunbelt Securities Inc. boosted its stake in RH by 690.0% in the fourth quarter. Sunbelt Securities Inc. now owns 79 shares of the company's stock valued at $31,000 after buying an additional 69 shares in the last quarter. Rakuten Securities Inc. boosted its stake in RH by 180.0% in the fourth quarter. Rakuten Securities Inc. now owns 112 shares of the company's stock valued at $44,000 after buying an additional 72 shares in the last quarter. AlphaQuest LLC acquired a new stake in RH in the first quarter valued at about $29,000. GAMMA Investing LLC boosted its stake in RH by 146.1% in the first quarter. GAMMA Investing LLC now owns 187 shares of the company's stock valued at $44,000 after buying an additional 111 shares in the last quarter. Finally, NBC Securities Inc. acquired a new stake in RH in the first quarter valued at about $45,000. 90.17% of the stock is owned by institutional investors and hedge funds.

RH Stock Up 7.1%

The firm has a 50 day moving average of $183.54 and a two-hundred day moving average of $295.15. The firm has a market capitalization of $3.55 billion, a price-to-earnings ratio of 54.44, a price-to-earnings-growth ratio of 2.65 and a beta of 2.19.

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.