StockNews.com Downgrades RH (NYSE:RH) to Sell

RH (NYSE:RH) was downgraded by StockNews.com from a “hold” rating to a “sell” rating in a research report issued on Saturday.

Several other analysts also recently commented on RH. Stifel Nicolaus upped their price target on shares of RH from $420.00 to $500.00 and gave the company a “buy” rating in a research report on Monday, December 16th. Loop Capital increased their target price on shares of RH from $320.00 to $450.00 and gave the stock a “hold” rating in a research note on Monday, December 16th. Guggenheim boosted their price target on RH from $425.00 to $550.00 and gave the company a “buy” rating in a research report on Friday, December 13th. JPMorgan Chase & Co. lowered their target price on RH from $345.00 to $338.00 and set an “overweight” rating on the stock in a research note on Monday, September 16th. Finally, TD Cowen upped their price target on RH from $325.00 to $350.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $402.40.

RH Trading Up 2.6 %

Shares of RH stock opened at $398.26 on Friday. The company has a fifty day simple moving average of $355.73 and a 200-day simple moving average of $302.75. The stock has a market cap of $7.41 billion, a price-to-earnings ratio of 114.44, a PEG ratio of 2.73 and a beta of 2.44. RH has a 12-month low of $212.43 and a 12-month high of $457.26.

RH (NYSE:RH) last released its quarterly earnings data on Thursday, December 12th. The company reported $2.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.19). RH had a net margin of 2.25% and a negative return on equity of 32.76%. The company had revenue of $811.73 million during the quarter, compared to analyst estimates of $812.19 million. During the same quarter in the prior year, the company earned ($0.42) EPS. The business’s revenue was up 8.1% on a year-over-year basis. On average, analysts forecast that RH will post 5.63 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Edward T. Lee sold 2,000 shares of the stock in a transaction dated Friday, October 18th. The stock was sold at an average price of $353.57, for a total transaction of $707,140.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Keith Belling sold 500 shares of RH stock in a transaction dated Tuesday, December 17th. The shares were sold at an average price of $415.00, for a total value of $207,500.00. Following the completion of the sale, the director now owns 5,470 shares of the company’s stock, valued at $2,270,050. This trade represents a 8.38 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 28.10% of the company’s stock.

Institutional Trading of RH

A number of institutional investors and hedge funds have recently made changes to their positions in RH. Texas Permanent School Fund Corp raised its holdings in RH by 25.3% in the second quarter. Texas Permanent School Fund Corp now owns 16,765 shares of the company’s stock valued at $4,098,000 after buying an additional 3,387 shares during the period. Virtu Financial LLC acquired a new position in shares of RH during the 3rd quarter valued at $4,268,000. Lisanti Capital Growth LLC purchased a new stake in RH during the 3rd quarter worth $3,251,000. Invst LLC purchased a new stake in RH during the 3rd quarter worth $752,000. Finally, Cerity Partners LLC increased its holdings in RH by 139.7% in the 3rd quarter. Cerity Partners LLC now owns 2,584 shares of the company’s stock valued at $864,000 after purchasing an additional 1,506 shares in the last quarter. 90.17% of the stock is currently owned by institutional investors and hedge funds.

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.