RH (NYSE:RH) Stock Price Up 10.1% - Time to Buy?

Key Points

• RH shares jumped 10.1% on Wednesday, trading as high as $134.93 after closing at $122.14 the prior day, though volume was below average.
• The company’s latest quarter was mixed: revenue rose 3.7% year over year, but RH missed both EPS and revenue estimates, which remains a near-term concern for investors.
• Wall Street sentiment is divided, with several firms cutting ratings or price targets, while the broader analyst view remains Hold and the average target price is about $175.13.

RH (NYSE:RH - Get Free Report)'s share price rose 10.1% on Wednesday . The company traded as high as $134.93 and last traded at $134.4410. Approximately 813,891 shares changed hands during mid-day trading, a decline of 31% from the average daily volume of 1,180,633 shares. The stock had previously closed at $122.14.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH’s revenue still increased year over year in the latest quarter, which suggests the business is growing despite the earnings miss.
• Neutral Sentiment: Arhaus-related headlines are adding sector context, but they are not a direct RH-specific development.
• Negative Sentiment: RH missed consensus EPS and revenue estimates, a clear near-term negative that can weigh on the stock. Arhaus Stock Drops to 52-Week Low After Q1 Earnings
• Negative Sentiment: Weak comparable-sales trends and cautious guidance from a peer are likely reinforcing investor concerns about demand in the home/furnishings space. RH (RH) Declines More Than Market: Some Information for Investors

Wall Street Analyst Weigh In

RH has been the subject of several recent analyst reports. Zacks Research lowered RH from a "hold" rating to a "strong sell" rating in a research note on Thursday, April 2nd. Wall Street Zen lowered RH from a "hold" rating to a "sell" rating in a report on Saturday, April 4th. Morgan Stanley reaffirmed an "overweight" rating and set a $240.00 target price on shares of RH in a research note on Monday, May 11th. Wells Fargo & Company dropped their price target on shares of RH from $180.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, May 14th. Finally, The Goldman Sachs Group cut their price target on shares of RH from $101.00 to $88.00 and set a "sell" rating for the company in a report on Tuesday, April 7th. Seven investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $175.13.

RH Price Performance

The company has a 50-day moving average of $130.27 and a 200 day moving average of $164.21. The company has a quick ratio of 0.31, a current ratio of 1.19 and a debt-to-equity ratio of 51.28. The stock has a market capitalization of $2.52 billion, a PE ratio of 21.24, a PEG ratio of 1.85 and a beta of 1.89.

RH (NYSE:RH - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The company reported $1.53 earnings per share for the quarter, missing analysts' consensus estimates of $2.21 by ($0.68). The firm had revenue of $842.62 million during the quarter, compared to analysts' expectations of $873.48 million. RH had a net margin of 3.63% and a negative return on equity of 567.82%. The company's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.58 EPS. Sell-side analysts predict that RH will post 6.39 EPS for the current year.

Insider Buying and Selling

In related news, insider Eri Chaya sold 11,000 shares of RH stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total transaction of $1,517,120.00. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders sold a total of 25,000 shares of company stock worth $3,370,440 in the last quarter. Company insiders own 26.90% of the company's stock.

Institutional Trading of RH

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Clearstead Advisors LLC lifted its holdings in RH by 713.3% in the third quarter. Clearstead Advisors LLC now owns 122 shares of the company's stock valued at $25,000 after acquiring an additional 107 shares during the last quarter. Huntington National Bank lifted its holdings in RH by 87.8% during the 3rd quarter. Huntington National Bank now owns 139 shares of the company's stock worth $28,000 after buying an additional 65 shares in the last quarter. Harvest Fund Management Co. Ltd acquired a new stake in RH during the 3rd quarter worth approximately $30,000. Advisory Services Network LLC purchased a new position in RH in the 3rd quarter valued at approximately $31,000. Finally, Wilmington Savings Fund Society FSB boosted its position in RH by 200.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company's stock valued at $31,000 after buying an additional 116 shares during the period. 90.17% of the stock is owned by institutional investors and hedge funds.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH's product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.

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