RH (NYSE:RH) Shares Down 6% – What’s Next?

RH (NYSE:RH)’s stock price was down 6% during mid-day trading on Tuesday . The stock traded as low as $206.31 and last traded at $206.0320. Approximately 191,410 shares were traded during trading, a decline of 83% from the average daily volume of 1,094,226 shares. The stock had previously closed at $219.09.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on RH shares. Robert W. Baird dropped their price target on RH from $235.00 to $180.00 and set a “neutral” rating on the stock in a research report on Friday, December 12th. Morgan Stanley boosted their target price on shares of RH from $250.00 to $275.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. TD Cowen increased their price objective on shares of RH from $200.00 to $265.00 and gave the company a “buy” rating in a research report on Tuesday, January 20th. KeyCorp reiterated a “sector weight” rating on shares of RH in a report on Friday, December 12th. Finally, William Blair lowered shares of RH from an “outperform” rating to a “market perform” rating in a report on Thursday, October 2nd. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $231.19.

RH Price Performance

The company has a debt-to-equity ratio of 944.39, a current ratio of 1.19 and a quick ratio of 0.26. The business’s 50-day moving average price is $183.07 and its two-hundred day moving average price is $196.40. The firm has a market cap of $3.93 billion, a price-to-earnings ratio of 37.75, a P/E/G ratio of 1.71 and a beta of 2.09.

RH (NYSE:RH) last issued its quarterly earnings data on Thursday, December 11th. The company reported $1.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.13 by ($0.42). RH had a negative return on equity of 161.72% and a net margin of 3.22%.The business had revenue of $883.81 million for the quarter, compared to analyst estimates of $883.65 million. During the same quarter in the prior year, the firm posted $2.48 earnings per share. The business’s quarterly revenue was up 8.9% on a year-over-year basis. On average, research analysts forecast that RH will post 4.39 EPS for the current fiscal year.

Insider Transactions at RH

In related news, Director Mark S. Demilio sold 2,254 shares of RH stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total transaction of $495,880.00. Following the sale, the director directly owned 19,962 shares of the company’s stock, valued at $4,391,640. This trade represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last quarter, insiders sold 5,154 shares of company stock valued at $1,100,148. Company insiders own 27.00% of the company’s stock.

Institutional Investors Weigh In On RH

A number of institutional investors and hedge funds have recently modified their holdings of RH. Senvest Management LLC increased its stake in RH by 54.6% in the second quarter. Senvest Management LLC now owns 733,894 shares of the company’s stock valued at $138,713,000 after purchasing an additional 259,200 shares in the last quarter. Durable Capital Partners LP increased its stake in RH by 125.1% during the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after purchasing an additional 359,101 shares in the last quarter. Alliancebernstein L.P. raised its holdings in RH by 66.1% during the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock worth $116,546,000 after buying an additional 228,229 shares during the period. Two Sigma Investments LP lifted its stake in RH by 40.9% in the third quarter. Two Sigma Investments LP now owns 359,093 shares of the company’s stock valued at $72,953,000 after buying an additional 104,154 shares in the last quarter. Finally, Westfield Capital Management Co. LP acquired a new position in shares of RH in the third quarter valued at approximately $67,632,000. 90.17% of the stock is owned by institutional investors.

RH Company Profile

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.