The RealReal, Inc. (NASDAQ:REAL) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts are broadly positive on The RealReal. The stock has a consensus rating of “Moderate Buy” from nine brokerages, with an average 1-year price target of $17.25.
• Insiders have been selling shares recently. CEO Rati Sahi Levesque and insider Luke Thomas Friang both sold stock on May 21, and insiders have sold 166,830 shares worth $1.54 million over the past three months.
• The company recently posted mixed but improved quarterly results. RealReal met earnings expectations at -$0.01 EPS while revenue rose 18.5% year over year to $189.72 million, and the stock was trading near $11.37 after a slight decline.

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

REAL has been the subject of a number of analyst reports. Weiss Ratings reissued a "sell (d-)" rating on shares of RealReal in a report on Tuesday, April 21st. Wall Street Zen lowered shares of RealReal from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Roth Capital set a $17.00 target price on shares of RealReal in a research note on Friday, May 8th. BTIG Research reissued a "buy" rating and set a $17.00 price target on shares of RealReal in a report on Wednesday, June 3rd. Finally, UBS Group restated a "buy" rating on shares of RealReal in a research report on Wednesday, June 3rd.

Insider Activity

In other RealReal news, insider Luke Thomas Friang sold 21,183 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total value of $195,942.75. Following the sale, the insider directly owned 530,676 shares of the company's stock, valued at approximately $4,908,753. This trade represents a 3.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Levesque Rati Sahi sold 81,194 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $9.25, for a total value of $751,044.50. Following the completion of the sale, the chief executive officer owned 1,581,276 shares of the company's stock, valued at $14,626,803. This trade represents a 4.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 166,830 shares of company stock worth $1,543,178. 2.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On RealReal

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Divisadero Street Capital Management LP lifted its holdings in RealReal by 652.5% during the third quarter. Divisadero Street Capital Management LP now owns 2,599,801 shares of the company's stock valued at $27,636,000 after purchasing an additional 2,254,300 shares in the last quarter. American Century Companies Inc. increased its stake in shares of RealReal by 3,474.7% during the third quarter. American Century Companies Inc. now owns 1,837,907 shares of the company's stock worth $19,537,000 after purchasing an additional 1,786,493 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of RealReal by 58.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company's stock worth $36,765,000 after purchasing an additional 1,489,939 shares during the last quarter. Penn Capital Management Company LLC purchased a new position in RealReal in the 3rd quarter valued at about $12,585,000. Finally, Renaissance Technologies LLC lifted its stake in RealReal by 117.9% in the 1st quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company's stock valued at $14,947,000 after buying an additional 890,700 shares in the last quarter. Hedge funds and other institutional investors own 64.73% of the company's stock.

RealReal Trading Down 0.8%

Shares of NASDAQ REAL traded down $0.09 during trading on Tuesday, reaching $11.37. 1,382,733 shares of the company traded hands, compared to its average volume of 3,380,770. The firm's fifty day simple moving average is $10.72 and its 200 day simple moving average is $12.02. The stock has a market cap of $1.37 billion, a P/E ratio of -11.13 and a beta of 2.66. RealReal has a 12-month low of $5.00 and a 12-month high of $17.39.

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

RealReal Company Profile

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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