Restoration Hardware (RH) Upgraded to “Buy” at Zacks Investment Research

Restoration Hardware (NYSE:RH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, November 20th. The firm presently has a $117.00 price target on the stock. Zacks Investment Research‘s target price would indicate a potential upside of 10.61% from the stock’s previous close.

According to Zacks, “RH’s shares have gained over 100% year to date, compared to the its industry’s 2.4% growth. The company’s efforts to redesign its supply chain network, rationalize product offerings and the Waterworks acquisition are expected to boost growth. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book and the rollout of Design Ateliers across the company’s retail galleries are expected to drive growth in 2017 and beyond. However, incremental outlet activity dented overall gross margins by approximately 330 basis points in the first half. Also, higher dependence on imports makes it vulnerable to uncertain macro conditions.”

Several other equities research analysts have also issued reports on RH. Loop Capital increased their target price on shares of Restoration Hardware from $55.00 to $65.00 and gave the stock a “hold” rating in a research note on Wednesday, October 11th. Stifel Nicolaus initiated coverage on shares of Restoration Hardware in a research note on Thursday, October 12th. They set a “hold” rating and a $75.00 target price on the stock. Piper Jaffray Companies increased their target price on shares of Restoration Hardware from $43.00 to $71.00 and gave the stock a “neutral” rating in a research note on Thursday, September 7th. Citigroup lowered shares of Restoration Hardware from a “buy” rating to a “neutral” rating and increased their target price for the stock from $63.00 to $76.00 in a research note on Monday, July 24th. Finally, Telsey Advisory Group reissued a “market perform” rating on shares of Restoration Hardware in a research note on Thursday, November 16th. Three analysts have rated the stock with a sell rating, fourteen have issued a hold rating and five have issued a buy rating to the company’s stock. Restoration Hardware currently has a consensus rating of “Hold” and an average price target of $78.91.

Restoration Hardware (NYSE:RH) traded up $1.08 during trading hours on Monday, reaching $105.78. 1,007,004 shares of the company’s stock traded hands, compared to its average volume of 1,979,786. Restoration Hardware has a one year low of $24.41 and a one year high of $109.53. The company has a debt-to-equity ratio of -26.72, a quick ratio of 0.27 and a current ratio of 1.50. The stock has a market capitalization of $2,197.06, a price-to-earnings ratio of 42.92, a price-to-earnings-growth ratio of 1.22 and a beta of 1.71.

Restoration Hardware (NYSE:RH) last posted its quarterly earnings results on Tuesday, December 5th. The company reported $1.04 EPS for the quarter, meeting the consensus estimate of $1.04. Restoration Hardware had a net margin of 0.45% and a return on equity of 14.77%. The company had revenue of $592.50 million for the quarter, compared to analyst estimates of $592.46 million. During the same period in the prior year, the company earned $0.20 earnings per share. The firm’s revenue was up 7.9% on a year-over-year basis. research analysts predict that Restoration Hardware will post 2.9 EPS for the current year.

In other news, CEO Gary G. Friedman purchased 13,959 shares of the business’s stock in a transaction dated Tuesday, September 26th. The stock was acquired at an average price of $71.64 per share, for a total transaction of $1,000,022.76. Following the acquisition, the chief executive officer now directly owns 2,235,410 shares of the company’s stock, valued at $160,144,772.40. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Gary G. Friedman purchased 14,000 shares of the business’s stock in a transaction dated Thursday, September 14th. The shares were purchased at an average price of $70.94 per share, with a total value of $993,160.00. Following the acquisition, the chief executive officer now directly owns 2,212,051 shares in the company, valued at $156,922,897.94. The disclosure for this purchase can be found here. 18.80% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Amalgamated Bank acquired a new stake in Restoration Hardware in the 1st quarter valued at approximately $242,000. New York State Teachers Retirement System purchased a new position in Restoration Hardware in the 1st quarter valued at approximately $705,000. Teachers Retirement System of The State of Kentucky boosted its position in Restoration Hardware by 24.3% in the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 11,440 shares of the company’s stock valued at $529,000 after buying an additional 2,240 shares during the period. California Public Employees Retirement System boosted its position in Restoration Hardware by 9.2% in the 1st quarter. California Public Employees Retirement System now owns 62,000 shares of the company’s stock valued at $2,868,000 after buying an additional 5,200 shares during the period. Finally, HighTower Advisors LLC purchased a new position in Restoration Hardware in the 1st quarter valued at approximately $204,000. Institutional investors and hedge funds own 95.71% of the company’s stock.

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Restoration Hardware Company Profile

RH, formerly Restoration Hardware Holdings, Inc, is a retailer in the home furnishings marketplace. As of January 28, 2017, the Company had two segments: RH Segment and Waterworks. It offers merchandise assortments across a range of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings.

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