RH (NYSE:RH) Trading Up 8.1% - Here's Why

Key Points

• RH shares surged 8.1% during mid-day trading, reaching a peak of $216.50, despite a significant decline in trading volume.
• Analysts provided mixed ratings for RH, with a consensus rating of "Hold" and an average target price of $270.35, while some lowered their price targets significantly.
• The company reported a surprise profit with earnings per share of $0.13, surpassing the consensus estimate by $0.20, despite a year-over-year revenue increase of 12%.

RH (NYSE:RH - Get Free Report) shares were up 8.1% during mid-day trading on Monday . The company traded as high as $216.50 and last traded at $216.96. Approximately 499,912 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 1,327,419 shares. The stock had previously closed at $200.76.

Analyst Ratings Changes

A number of equities analysts recently issued reports on RH shares. Zelman & Associates dropped their price objective on shares of RH from $305.00 to $251.00 and set an "outperform" rating on the stock in a report on Wednesday, July 9th. UBS Group lowered their price target on shares of RH from $235.00 to $215.00 and set a "neutral" rating on the stock in a report on Thursday, June 5th. Wall Street Zen raised shares of RH from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. JPMorgan Chase & Co. lowered their price target on shares of RH from $510.00 to $250.00 and set an "overweight" rating on the stock in a report on Monday, April 14th. Finally, Bank of America lifted their price target on shares of RH from $144.00 to $172.00 and gave the company an "underperform" rating in a report on Wednesday, May 14th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat.com, RH has a consensus rating of "Hold" and an average target price of $270.35.

RH Price Performance

The firm's 50-day moving average is $194.21 and its two-hundred day moving average is $243.09. The company has a market cap of $4.07 billion, a P/E ratio of 51.69, a PEG ratio of 0.58 and a beta of 2.16.

RH (NYSE:RH - Get Free Report) last announced its quarterly earnings results on Thursday, June 12th. The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.20. RH had a net margin of 2.57% and a negative return on equity of 67.71%. The company had revenue of $813.95 million for the quarter, compared to analysts' expectations of $817.66 million. During the same quarter in the previous year, the business posted ($0.40) earnings per share. RH's quarterly revenue was up 12.0% on a year-over-year basis. As a group, sell-side analysts expect that RH will post 4.39 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. LPL Financial LLC grew its holdings in shares of RH by 61.3% in the fourth quarter. LPL Financial LLC now owns 9,141 shares of the company's stock worth $3,598,000 after purchasing an additional 3,473 shares during the last quarter. Pictet Asset Management Holding SA grew its holdings in shares of RH by 16.2% in the fourth quarter. Pictet Asset Management Holding SA now owns 2,257 shares of the company's stock worth $888,000 after purchasing an additional 314 shares during the last quarter. California Public Employees Retirement System grew its holdings in shares of RH by 20.9% in the fourth quarter. California Public Employees Retirement System now owns 23,296 shares of the company's stock worth $9,169,000 after purchasing an additional 4,031 shares during the last quarter. O Shaughnessy Asset Management LLC bought a new position in shares of RH in the fourth quarter worth about $211,000. Finally, Wellington Management Group LLP grew its holdings in shares of RH by 14.0% in the fourth quarter. Wellington Management Group LLP now owns 44,880 shares of the company's stock worth $17,664,000 after purchasing an additional 5,506 shares during the last quarter. Institutional investors own 90.17% of the company's stock.

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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