RH (NYSE:RH) Stock Price Down 5% - Should You Sell?

Key Points

• RH's stock price fell by 5% during trading on Tuesday, with shares trading as low as $230.57.
• Analysts' ratings on RH vary widely, with upgrades and downgrades resulting in a consensus "Hold" rating and a target price of $273.47.
• The company's last earnings report showed a 12% increase in revenue year-over-year, but it also reported a negative return on equity of 67.71%.

Shares of RH (NYSE:RH - Get Free Report) traded down 5% during trading on Tuesday . The company traded as low as $230.57 and last traded at $228.88. 178,157 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 1,286,645 shares. The stock had previously closed at $240.99.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on RH shares. Wall Street Zen upgraded shares of RH from a "sell" rating to a "hold" rating in a research report on Thursday, May 22nd. Robert W. Baird upped their target price on RH from $215.00 to $230.00 and gave the stock a "neutral" rating in a research note on Monday, June 16th. Guggenheim reaffirmed a "buy" rating and issued a $300.00 price target on shares of RH in a research note on Wednesday, July 2nd. The Goldman Sachs Group lowered RH from a "neutral" rating to a "sell" rating and lowered their price objective for the company from $199.00 to $179.00 in a research report on Tuesday, June 24th. Finally, UBS Group dropped their target price on RH from $235.00 to $215.00 and set a "neutral" rating on the stock in a report on Thursday, June 5th. Ten equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, RH presently has an average rating of "Hold" and a consensus target price of $273.47.

RH Price Performance

The stock has a market capitalization of $4.29 billion, a P/E ratio of 54.59, a PEG ratio of 0.73 and a beta of 2.15. The company's 50 day simple moving average is $216.55 and its two-hundred day simple moving average is $210.58.

RH (NYSE:RH - Get Free Report) last announced its earnings results on Thursday, June 12th. The company reported $0.13 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.20. The business had revenue of $813.95 million during the quarter, compared to the consensus estimate of $817.66 million. RH had a net margin of 2.57% and a negative return on equity of 67.71%. RH's revenue was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.40) EPS. RH has set its Q2 2025 guidance at EPS. FY 2025 guidance at EPS. On average, research analysts anticipate that RH will post 4.39 earnings per share for the current fiscal year.

Hedge Funds Weigh In On RH

A number of large investors have recently modified their holdings of RH. Cetera Investment Advisers boosted its position in shares of RH by 81.7% in the fourth quarter. Cetera Investment Advisers now owns 3,856 shares of the company's stock valued at $1,518,000 after acquiring an additional 1,734 shares during the period. Deutsche Bank AG raised its stake in shares of RH by 607.9% during the fourth quarter. Deutsche Bank AG now owns 9,464 shares of the company's stock worth $3,725,000 after acquiring an additional 8,127 shares in the last quarter. Gotham Asset Management LLC purchased a new position in shares of RH in the fourth quarter worth $205,000. J. Goldman & Co LP bought a new stake in RH in the fourth quarter valued at $785,000. Finally, Interval Partners LP bought a new stake in shares of RH during the 4th quarter valued at $5,904,000. 90.17% of the stock is currently owned by institutional investors.

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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