RH (NYSE:RH) Stock Price Up 6.9% - Should You Buy?

Key Points

• RH shares rose 6.9% on Wednesday, closing at $186.57 after trading as high as $184.00, though volume was far below average at 93,941 shares.
• Recent analyst activity was mixed: Guggenheim reiterated a buy with a $200 target, while several firms trimmed targets or kept neutral ratings. The overall consensus remains Hold with a target price of $171.71.
• RH’s latest earnings beat expectations, with EPS of -$1.97 versus estimates of -$2.12 and revenue of $800.33 million topping forecasts. Insider activity was also notable, including CEO Gary G. Friedman selling shares while director Carlos Alberini bought stock.

RH (NYSE:RH - Get Free Report) shares rose 6.9% on Wednesday . The company traded as high as $184.00 and last traded at $186.5650. 93,941 shares traded hands during trading, a decline of 92% from the average daily volume of 1,114,164 shares. The stock had previously closed at $174.55.

Analyst Ratings Changes

A number of research firms have recently weighed in on RH. Guggenheim reissued a "buy" rating and issued a $200.00 price target on shares of RH in a research note on Friday, June 12th. UBS Group reduced their price objective on shares of RH from $160.00 to $155.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 9th. Robert W. Baird raised their price target on RH from $125.00 to $150.00 and gave the stock a "neutral" rating in a research report on Friday, June 12th. Barclays lowered their target price on RH from $283.00 to $202.00 and set an "overweight" rating for the company in a research note on Thursday, April 2nd. Finally, Citigroup lifted their price objective on shares of RH from $150.00 to $166.00 and gave the company a "neutral" rating in a research report on Monday, June 15th. Seven analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $171.71.

RH Stock Performance

The stock has a fifty day simple moving average of $148.18 and a two-hundred day simple moving average of $161.97. The stock has a market cap of $3.58 billion, a price-to-earnings ratio of 36.68, a P/E/G ratio of 3.71 and a beta of 1.88. The company has a debt-to-equity ratio of 54.96, a quick ratio of 0.32 and a current ratio of 1.13.

RH (NYSE:RH - Get Free Report) last released its quarterly earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share (EPS) for the quarter, beating the consensus estimate of ($2.12) by $0.15. The firm had revenue of $800.33 million during the quarter, compared to the consensus estimate of $792.55 million. RH had a net margin of 3.01% and a return on equity of 423.79%. The company's revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.13 earnings per share. Analysts expect that RH will post 4.27 EPS for the current fiscal year.

Insider Activity at RH

In other news, CEO Gary G. Friedman sold 48,238 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $158.66, for a total transaction of $7,653,441.08. Following the completion of the transaction, the chief executive officer directly owned 3,226,337 shares of the company's stock, valued at $511,890,628.42. This represents a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Carlos Alberini acquired 11,388 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The stock was purchased at an average cost of $160.90 per share, with a total value of $1,832,329.20. Following the acquisition, the director owned 32,190 shares in the company, valued at $5,179,371. The trade was a 54.74% increase in their position. The SEC filing for this purchase provides additional information. Over the last three months, insiders sold 132,749 shares of company stock valued at $21,856,812. 26.90% of the stock is owned by insiders.

Institutional Trading of RH

A number of hedge funds have recently bought and sold shares of the company. Farther Finance Advisors LLC lifted its holdings in shares of RH by 45.0% in the fourth quarter. Farther Finance Advisors LLC now owns 248 shares of the company's stock valued at $44,000 after purchasing an additional 77 shares in the last quarter. Public Employees Retirement System of Ohio grew its holdings in shares of RH by 1.6% during the third quarter. Public Employees Retirement System of Ohio now owns 5,122 shares of the company's stock worth $1,041,000 after buying an additional 81 shares in the last quarter. CWM LLC raised its position in RH by 22.7% in the 4th quarter. CWM LLC now owns 492 shares of the company's stock valued at $88,000 after buying an additional 91 shares during the last quarter. US Bancorp DE raised its position in RH by 30.8% in the 3rd quarter. US Bancorp DE now owns 416 shares of the company's stock valued at $85,000 after buying an additional 98 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund lifted its stake in RH by 3.3% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 3,170 shares of the company's stock valued at $443,000 after acquiring an additional 100 shares in the last quarter. Institutional investors own 90.17% of the company's stock.

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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