The RealReal, Inc. (NASDAQ:REAL) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Nine brokerages give RealReal an average “Moderate Buy” rating, with six buys, one strong buy, one hold, and one sell. The average 12-month price target is $17.25, above the reported share price of $12.09.
• RealReal reported quarterly revenue of $189.72 million, exceeding estimates and rising 18.5% year over year, while adjusted earnings per share of ($0.01) matched expectations. Analysts expect a full-year loss of approximately $0.14 per share.
• Insiders sold 166,830 shares worth about $1.54 million over the past 90 days, while institutional investors own 64.73% of the company; AQR Capital significantly increased its stake during the first quarter.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the nine ratings firms that are covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation, six have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $17.25.

REAL has been the subject of several analyst reports. BTIG Research reissued a "buy" rating and issued a $17.00 price objective on shares of RealReal in a research note on Wednesday, June 3rd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RealReal in a research report on Friday, July 17th. Robert W. Baird set a $13.00 price target on RealReal in a report on Friday, May 8th. Wall Street Zen lowered RealReal from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Finally, UBS Group restated a "buy" rating on shares of RealReal in a research note on Wednesday, June 3rd.

RealReal Price Performance

REAL opened at $12.09 on Friday. RealReal has a fifty-two week low of $5.00 and a fifty-two week high of $17.39. The firm has a market capitalization of $1.46 billion, a PE ratio of -11.85 and a beta of 2.66. The company's 50-day moving average is $10.97 and its 200 day moving average is $11.41.

RealReal (NASDAQ:REAL - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.01) earnings per share for the quarter, meeting the consensus estimate of ($0.01). The business had revenue of $189.72 million during the quarter, compared to the consensus estimate of $187.82 million. RealReal's revenue was up 18.5% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.08) EPS. As a group, analysts expect that RealReal will post -0.14 EPS for the current year.

Insider Transactions at RealReal

In other news, CAO Steve Ming Lo sold 12,077 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $9.25, for a total value of $111,712.25. Following the completion of the sale, the chief accounting officer owned 189,469 shares in the company, valued at $1,752,588.25. This represents a 5.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Levesque Rati Sahi sold 81,194 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $751,044.50. Following the transaction, the chief executive officer directly owned 1,581,276 shares in the company, valued at $14,626,803. The trade was a 4.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 166,830 shares of company stock worth $1,543,178. 2.66% of the stock is owned by insiders.

Institutional Investors Weigh In On RealReal

Several institutional investors and hedge funds have recently added to or reduced their stakes in REAL. AQR Capital Management LLC lifted its position in shares of RealReal by 589.2% during the 1st quarter. AQR Capital Management LLC now owns 887,997 shares of the company's stock worth $4,786,000 after buying an additional 759,160 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of RealReal by 6.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,437 shares of the company's stock valued at $326,000 after acquiring an additional 3,500 shares in the last quarter. Millennium Management LLC grew its holdings in shares of RealReal by 1.9% in the first quarter. Millennium Management LLC now owns 883,690 shares of the company's stock valued at $4,763,000 after acquiring an additional 16,136 shares in the last quarter. Legal & General Group Plc increased its position in shares of RealReal by 14.1% during the second quarter. Legal & General Group Plc now owns 81,292 shares of the company's stock valued at $389,000 after acquiring an additional 10,052 shares during the last quarter. Finally, Amundi purchased a new stake in shares of RealReal during the second quarter valued at approximately $197,000. Hedge funds and other institutional investors own 64.73% of the company's stock.

About RealReal

The RealReal, Inc NASDAQ: REAL operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal's business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.

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