RH (NYSE:RH) Shares Gap Up - Still a Buy?

Key Points

• RH shares opened at $204.05 after a previous close of $197.84, with current trading at $200.37 on a volume of 205,751 shares.
• Analysts are mixed on RH, with Barclays maintaining an "overweight" rating but lowering their price target from $436.00 to $385.00, while Goldman Sachs downgraded from "neutral" to "sell" with a price target cut to $179.00.
• The company's latest earnings report showed a miss on EPS estimates, reporting $2.93 compared to the consensus of $3.22, signaling potential concerns about future growth.

Shares of RH (NYSE:RH - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $197.84, but opened at $204.05. RH shares last traded at $200.37, with a volume of 205,751 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Barclays decreased their price target on RH from $436.00 to $385.00 and set an "overweight" rating on the stock in a research note on Friday, September 12th. The Goldman Sachs Group lowered RH from a "neutral" rating to a "sell" rating and decreased their price target for the company from $199.00 to $179.00 in a research note on Tuesday, June 24th. Cowen reaffirmed a "buy" rating on shares of RH in a research note on Friday, September 12th. UBS Group decreased their price target on RH from $235.00 to $215.00 and set a "neutral" rating on the stock in a research note on Thursday, June 5th. Finally, Zelman & Associates reduced their price objective on RH from $305.00 to $251.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 9th. Ten research analysts have rated the stock with a Buy rating, five have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $259.29.

RH Stock Up 1.0%

The company has a market cap of $3.75 billion, a P/E ratio of 37.10, a P/E/G ratio of 0.96 and a beta of 2.15. The business has a 50-day moving average price of $222.59 and a two-hundred day moving average price of $203.83.

RH (NYSE:RH - Get Free Report) last released its earnings results on Thursday, September 11th. The company reported $2.93 earnings per share for the quarter, missing analysts' consensus estimates of $3.22 by ($0.29). The firm had revenue of $899.15 million for the quarter, compared to the consensus estimate of $906.58 million. RH had a negative return on equity of 113.58% and a net margin of 3.20%.The company's revenue was up 8.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.69 EPS. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts expect that RH will post 4.39 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Mark S. Demilio sold 2,000 shares of the company's stock in a transaction dated Friday, September 19th. The stock was sold at an average price of $236.13, for a total value of $472,260.00. Following the completion of the sale, the director owned 24,616 shares in the company, valued at approximately $5,812,576.08. This represents a 7.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Corporate insiders own 27.00% of the company's stock.

Institutional Investors Weigh In On RH

Large investors have recently modified their holdings of the business. Cambridge Investment Research Advisors Inc. increased its holdings in shares of RH by 146.8% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 3,986 shares of the company's stock worth $934,000 after acquiring an additional 2,371 shares in the last quarter. Intech Investment Management LLC boosted its position in shares of RH by 29.0% during the first quarter. Intech Investment Management LLC now owns 9,790 shares of the company's stock worth $2,295,000 after buying an additional 2,198 shares during the period. Wellington Management Group LLP boosted its position in shares of RH by 14.0% during the fourth quarter. Wellington Management Group LLP now owns 44,880 shares of the company's stock worth $17,664,000 after buying an additional 5,506 shares during the period. Trexquant Investment LP acquired a new position in shares of RH during the first quarter worth about $9,575,000. Finally, Nixon Capital LLC boosted its position in shares of RH by 7.8% during the first quarter. Nixon Capital LLC now owns 27,529 shares of the company's stock worth $6,453,000 after buying an additional 1,999 shares during the period. 90.17% of the stock is currently owned by institutional investors.

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.

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