Wall Street Zen Downgrades RealReal (NASDAQ:REAL) to Hold

RealReal (NASDAQ:REAL) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

Several other equities research analysts have also recently commented on REAL. KeyCorp upgraded RealReal from a “sector weight” rating to an “overweight” rating and set a $16.00 target price on the stock in a research note on Wednesday, November 5th. William Blair began coverage on shares of RealReal in a research report on Monday, December 15th. They issued an “outperform” rating on the stock. Roth Capital set a $17.50 target price on shares of RealReal and gave the stock a “buy” rating in a report on Wednesday, October 29th. Robert W. Baird set a $15.00 target price on shares of RealReal in a research report on Wednesday, December 17th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of RealReal in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, RealReal currently has an average rating of “Moderate Buy” and a consensus target price of $17.07.

RealReal Trading Up 0.7%

REAL opened at $16.45 on Friday. The stock has a market capitalization of $1.92 billion, a P/E ratio of -11.92 and a beta of 2.60. RealReal has a 12 month low of $4.61 and a 12 month high of $16.74. The firm’s fifty day simple moving average is $14.44 and its 200 day simple moving average is $10.42.

RealReal (NASDAQ:REAL) last released its quarterly earnings results on Monday, November 10th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.35). The business had revenue of $173.57 million during the quarter, compared to analysts’ expectations of $169.01 million. On average, equities research analysts predict that RealReal will post -0.4 EPS for the current fiscal year.

Insider Transactions at RealReal

In related news, insider Luke Thomas Friang sold 18,619 shares of the firm’s stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $13.06, for a total value of $243,164.14. Following the completion of the sale, the insider directly owned 499,265 shares in the company, valued at approximately $6,520,400.90. This trade represents a 3.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Steve Ming Lo sold 59,789 shares of RealReal stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $14.46, for a total value of $864,548.94. Following the transaction, the chief accounting officer owned 249,553 shares of the company’s stock, valued at $3,608,536.38. The trade was a 19.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 15,823,249 shares of company stock valued at $209,258,341. 9.00% of the stock is owned by company insiders.

Institutional Trading of RealReal

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of RealReal by 7.7% during the 3rd quarter. Vanguard Group Inc. now owns 5,929,807 shares of the company’s stock worth $63,034,000 after acquiring an additional 425,674 shares during the period. Kanen Wealth Management LLC lifted its holdings in RealReal by 26.2% during the 2nd quarter. Kanen Wealth Management LLC now owns 4,708,623 shares of the company’s stock valued at $22,554,000 after purchasing an additional 978,660 shares during the last quarter. Marshall Wace LLP boosted its position in RealReal by 3.4% during the second quarter. Marshall Wace LLP now owns 4,321,577 shares of the company’s stock worth $20,700,000 after purchasing an additional 143,165 shares during the period. Two Sigma Investments LP boosted its position in RealReal by 6.6% during the third quarter. Two Sigma Investments LP now owns 2,628,770 shares of the company’s stock worth $27,944,000 after purchasing an additional 162,804 shares during the period. Finally, Divisadero Street Capital Management LP increased its holdings in shares of RealReal by 652.5% in 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 during the last quarter. 64.73% of the stock is owned by institutional investors and hedge funds.

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.