RH (NYSE:RH) Stock Price Down 5.7% - Here's Why

Key Points

• RH's stock price fell by 5.7% on Thursday, trading between $229.17 and $231.69, with a trading volume decrease of 72% from its average session.
• The Goldman Sachs Group downgraded RH from a "neutral" to a "sell" rating, lowering the target price from $199.00 to $179.00, while Wells Fargo set a target price of $275.00.
• RH reported a $0.13 EPS for the last quarter, beating expectations, but had a negative return on equity of 67.71% despite a revenue increase of 12% year-over-year.

RH (NYSE:RH - Get Free Report)'s share price traded down 5.7% on Thursday . The stock traded as low as $229.17 and last traded at $231.69. 366,976 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 1,314,132 shares. The stock had previously closed at $245.68.

Analyst Ratings Changes

Several research firms have commented on RH. The Goldman Sachs Group downgraded shares of RH from a "neutral" rating to a "sell" rating and decreased their target price for the stock from $199.00 to $179.00 in a research report on Tuesday, June 24th. Guggenheim reissued a "buy" rating and issued a $300.00 target price on shares of RH in a research report on Wednesday, July 2nd. Wells Fargo & Company set a $275.00 target price on shares of RH in a research report on Friday, June 13th. Wall Street Zen raised shares of RH from a "sell" rating to a "hold" rating in a research report on Thursday, May 22nd. Finally, Telsey Advisory Group decreased their target price on shares of RH from $280.00 to $255.00 and set an "outperform" rating for the company in a research report on Monday, June 9th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat.com, RH has an average rating of "Hold" and a consensus target price of $270.35.

RH Stock Performance

The firm has a 50 day simple moving average of $200.76 and a two-hundred day simple moving average of $233.75. The firm has a market capitalization of $4.30 billion, a P/E ratio of 54.75, a PEG ratio of 0.69 and a beta of 2.16.

RH (NYSE:RH - Get Free Report) last issued 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 negative return on equity of 67.71% and a net margin of 2.57%. The firm's revenue was up 12.0% compared to the same quarter last year. During the same quarter last year, the company earned ($0.40) EPS. Sell-side analysts anticipate that RH will post 4.39 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in shares of RH during the second quarter worth about $26,000. AlphaQuest LLC purchased a new position in RH during the 1st quarter valued at approximately $29,000. Farther Finance Advisors LLC grew its holdings in RH by 67.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 151 shares of the company's stock valued at $29,000 after buying an additional 61 shares in the last quarter. Sunbelt Securities Inc. grew its holdings in RH by 690.0% during the 4th 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. Finally, UMB Bank n.a. grew its holdings in RH by 53.8% during the 2nd quarter. UMB Bank n.a. now owns 180 shares of the company's stock valued at $34,000 after buying an additional 63 shares in the last quarter. Institutional investors own 90.17% of the company's stock.

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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