The Goldman Sachs Group Lowers RH (NYSE:RH) Price Target to $88.00

Key Points

• Goldman Sachs cut its price target on RH from $101 to $88 and reiterated a "sell" rating, implying roughly a 23% downside from the recent share price.
• RH missed Q4 EPS ($1.53 vs. $2.21 expected) and revenue and issued a softer outlook, prompting the stock to slide to about $114.41 intraday.
• Analysts are mixed with a consensus rating of "Hold" and an average price target of $176.47, while insiders have sold roughly 29,254 shares recently and institutional investors own about 90.17% of the stock.

RH (NYSE:RH - Get Free Report) had its target price decreased by stock analysts at The Goldman Sachs Group from $101.00 to $88.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has a "sell" rating on the stock. The Goldman Sachs Group's target price indicates a potential downside of 23.09% from the company's current price.

A number of other analysts have also recently commented on the company. Guggenheim reduced their price target on RH from $275.00 to $200.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Wells Fargo & Company reduced their price target on RH from $225.00 to $180.00 and set an "overweight" rating for the company in a research report on Wednesday, April 1st. Jefferies Financial Group restated a "hold" rating on shares of RH in a research report on Tuesday, January 27th. UBS Group reduced their price target on RH from $188.00 to $160.00 and set a "neutral" rating for the company in a research report on Tuesday, March 17th. Finally, Zelman & Associates restated an "outperform" rating on shares of RH in a research report on Thursday, January 29th. Seven equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $176.47.

RH Stock Performance

RH stock traded down $4.24 during mid-day trading on Tuesday, reaching $114.41. 1,330,912 shares of the stock traded hands, compared to its average volume of 1,276,733. The stock has a market capitalization of $2.15 billion, a PE ratio of 18.12, a price-to-earnings-growth ratio of 1.22 and a beta of 2.10. The company has a debt-to-equity ratio of 51.28, a current ratio of 1.19 and a quick ratio of 0.26. RH has a 12-month low of $106.30 and a 12-month high of $257.00. The business's 50-day moving average is $165.83 and its 200-day moving average is $177.20.

RH (NYSE:RH - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The company reported $1.53 EPS for the quarter, missing analysts' consensus estimates of $2.21 by ($0.68). The firm had revenue of $842.62 million for 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 firm's revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the company posted $1.58 EPS. As a group, sell-side analysts predict that RH will post 4.39 EPS for the current fiscal year.

Insider Transactions at RH

In other news, insider Eri Chaya sold 11,000 shares of the company's stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total value of $1,517,120.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark S. Demilio sold 2,254 shares of the company's stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total value of $495,880.00. Following the completion of the transaction, the director directly owned 19,962 shares of the company's stock, valued at approximately $4,391,640. This trade represents a 10.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 29,254 shares of company stock valued at $4,306,520. Corporate insiders own 27.00% of the company's stock.

Hedge Funds Weigh In On RH

A number of hedge funds have recently made changes to their positions in RH. United Services Automobile Association bought a new position in shares of RH in the first quarter worth about $231,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in RH by 6.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,622 shares of the company's stock valued at $9,053,000 after buying an additional 2,244 shares during the last quarter. Prudential Financial Inc. boosted its stake in RH by 24.4% during the second quarter. Prudential Financial Inc. now owns 1,593 shares of the company's stock valued at $301,000 after buying an additional 312 shares during the last quarter. Federated Hermes Inc. boosted its stake in RH by 30.1% during the second quarter. Federated Hermes Inc. now owns 1,137 shares of the company's stock valued at $215,000 after buying an additional 263 shares during the last quarter. Finally, California Public Employees Retirement System boosted its stake in RH by 9.5% during the second quarter. California Public Employees Retirement System now owns 19,049 shares of the company's stock valued at $3,600,000 after buying an additional 1,650 shares during the last quarter. Institutional investors own 90.17% of the company's stock.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Analyst expectations for the year: consensus estimates still point to materially higher FY EPS (street average ~4.39), which gives investors a recovery thesis if RH can stabilize margins and delivery. (Background consensus)
• Neutral Sentiment: RH published its Q4 2026 prepared remarks — the transcript provides management’s detailed commentary on sales trends, margin drivers, inventory and cost actions that investors will parse for signs of recovery. Read More.
• Negative Sentiment: Market reaction to the quarter and outlook: investors are selling after RH missed Q4 EPS and revenue expectations and issued a softer FY26 outlook, prompting the intraday slide. Read More.

RH Company Profile

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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