RH (NYSE:RH) Trading Down 4.6% - Should You Sell?

Key Points

• RH's stock price has decreased by 4.6%, trading at around $193.25, with a significant drop in trading volume, down 76% from its average daily volume.
• Recent analyst ratings show a mixed outlook on RH, with one firm downgrading the stock to "strong sell" while others maintain a "buy" rating, leading to an average rating of "hold."
• The company's latest quarterly earnings reported $2.93 EPS, missing estimates, and showing a 3.20% net margin along with a negative return on equity of 113.58%.

RH (NYSE:RH - Get Free Report)'s stock price dropped 4.6% during trading on Monday . The company traded as low as $194.01 and last traded at $193.25. Approximately 312,015 shares were traded during trading, a decline of 76% from the average daily volume of 1,299,060 shares. The stock had previously closed at $202.50.

Analyst Upgrades and Downgrades

RH has been the topic of a number of recent research reports. Zacks Research lowered shares of RH from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 16th. Robert W. Baird increased their price objective on shares of RH from $215.00 to $230.00 and gave the stock a "neutral" rating in a research note on Monday, June 16th. Cowen restated a "buy" rating on shares of RH in a research note on Friday, September 12th. Guggenheim restated a "buy" rating and issued a $300.00 price target on shares of RH in a research note on Friday, September 12th. Finally, Barclays dropped their price objective on shares of RH from $436.00 to $385.00 and set an "overweight" rating for the company in a report on Friday, September 12th. Ten investment analysts have rated the stock with a Buy rating, five have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $259.29.

RH Trading Down 2.6%

The stock's fifty day moving average is $222.53 and its two-hundred day moving average is $204.02. The company has a market capitalization of $3.70 billion, a PE ratio of 36.58, a P/E/G ratio of 0.96 and a beta of 2.15.

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

Insider Buying and Selling at RH

In other news, Director Mark S. Demilio sold 2,000 shares of the stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $236.13, for a total transaction of $472,260.00. Following the completion of the sale, the director owned 24,616 shares of the company's stock, 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 hyperlink. Company insiders own 27.00% of the company's stock.

Hedge Funds Weigh In On RH

A number of institutional investors have recently added to or reduced their stakes in RH. Vanguard Group Inc. increased its holdings in shares of RH by 0.6% during the first quarter. Vanguard Group Inc. now owns 1,409,962 shares of the company's stock valued at $330,509,000 after acquiring an additional 7,952 shares in the last quarter. Senvest Management LLC boosted its position in RH by 54.6% in the second quarter. Senvest Management LLC now owns 733,894 shares of the company's stock worth $138,713,000 after purchasing an additional 259,200 shares during the last quarter. Durable Capital Partners LP boosted its position in RH by 125.1% in the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company's stock worth $122,119,000 after purchasing an additional 359,101 shares during the last quarter. Atreides Management LP boosted its position in RH by 69.1% in the first quarter. Atreides Management LP now owns 473,321 shares of the company's stock worth $110,951,000 after purchasing an additional 193,404 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in RH by 0.7% in the second quarter. Geode Capital Management LLC now owns 265,762 shares of the company's stock worth $50,240,000 after purchasing an additional 1,829 shares during 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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