RH (NYSE:RH) Downgraded by Wall Street Zen to “Sell”

Wall Street Zen lowered shares of RH (NYSE:RH) from a hold rating to a sell rating in a research note issued to investors on Saturday.

Other analysts have also recently issued reports about the stock. Stifel Nicolaus reaffirmed a “hold” rating and issued a $165.00 target price (down from $320.00) on shares of RH in a research note on Friday, December 12th. Barclays reduced their price target on RH from $283.00 to $202.00 and set an “overweight” rating on the stock in a research note on Thursday. The Goldman Sachs Group decreased their price objective on RH from $195.00 to $144.00 and set a “sell” rating on the stock in a report on Monday, December 15th. JPMorgan Chase & Co. lowered their price objective on RH from $275.00 to $225.00 and set an “overweight” rating for the company in a research report on Friday, December 19th. Finally, Zelman & Associates reiterated an “outperform” rating on shares of RH in a research note on Thursday, January 29th. Seven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $180.20.

RH Price Performance

NYSE:RH opened at $113.49 on Friday. RH has a 12-month low of $106.30 and a 12-month high of $257.00. The firm has a market cap of $2.14 billion, a price-to-earnings ratio of 17.99, a price-to-earnings-growth ratio of 1.22 and a beta of 2.10. The company’s 50-day moving average is $167.84 and its two-hundred day moving average is $178.37. The company has a current ratio of 1.19, a quick ratio of 0.26 and a debt-to-equity ratio of 51.28.

RH (NYSE:RH) last issued its quarterly earnings results on Tuesday, March 31st. The company reported $1.53 EPS for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). The firm had revenue of $842.62 million for the quarter, compared to analysts’ expectations of $873.48 million. RH had a negative return on equity of 567.82% and a net margin of 3.63%.The business’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.58 earnings per share. Research analysts expect that RH will post 4.39 EPS for the current year.

Insider Activity at RH

In other RH news, Director Mark S. Demilio sold 2,254 shares of RH stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total value of $495,880.00. Following the transaction, the director owned 19,962 shares in the company, valued at $4,391,640. This trade represents a 10.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Eri Chaya sold 11,000 shares of the business’s stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total transaction of $1,517,120.00. The SEC filing for this sale provides additional information. Insiders have sold 29,254 shares of company stock valued at $4,306,520 in the last ninety days. 27.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RH. Clearstead Advisors LLC boosted its holdings in RH by 713.3% in the third quarter. Clearstead Advisors LLC now owns 122 shares of the company’s stock valued at $25,000 after acquiring an additional 107 shares during the last quarter. Huntington National Bank increased its stake in RH by 87.8% during the third quarter. Huntington National Bank now owns 139 shares of the company’s stock worth $28,000 after acquiring an additional 65 shares during the last quarter. Harvest Fund Management Co. Ltd acquired a new stake in RH during the third quarter worth about $30,000. Wilmington Savings Fund Society FSB raised its holdings in shares of RH by 200.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock worth $31,000 after purchasing an additional 116 shares during the period. Finally, Advisory Services Network LLC purchased a new position in shares of RH in the 3rd quarter worth about $31,000. 90.17% of the stock is owned by hedge funds and other institutional investors.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some large brokers remain constructive or keep overweight/buy ratings despite lower targets, which supports short‑term buying interest and stabilizes the stock. Read More.
• Positive Sentiment: Value/“buy‑the‑dip” commentary argues the pullback may present a long‑term entry given RH’s brand and growth plan, attracting opportunistic investors. Read More.
• Neutral Sentiment: Citigroup cut its price target from $183 to $150 and set a neutral rating — reduces upside expectations but is not a sell call, which can temper further liquidation. Read More.
• Neutral Sentiment: RH reiterated its long‑term expansion strategy (global gallery openings, higher pre‑opening costs). Management frames near‑term margin pressure as deliberate investment for growth — explains elevated spending but increases execution risk. Read More.
• Negative Sentiment: Q4 miss drove the sell‑off: adjusted EPS $1.53 vs. ~$2.21 consensus and revenue $842.6M vs. ~$873.5M; management cited tariff/resourcing and weather headwinds. That earnings miss triggered analyst cuts and selling pressure. Read More.
• Negative Sentiment: Cautious FY2026 outlook: management guided modest revenue growth and lower adjusted EBITDA margins as it ramps global expansion and funds pre‑openings — implies near‑term margin compression and slower cash generation. Read More.
• Negative Sentiment: Analyst downgrades and lower targets from multiple houses (BNP Paribas Exane, Wells Fargo and others) amplify downside pressure and reduce conviction among institutional holders. Read More.
• Negative Sentiment: Insider selling: director/insider Eri Chaya sold multiple blocks (11,000 shares on Mar 31 plus earlier sales), which investors often view as a negative signal; a shareholder law firm has also announced an investigation that can add short‑term uncertainty. Read More. Read More.
• Negative Sentiment: Macro/industry headwinds: RH’s CEO warned of a worsening housing market and declining mortgage applications, which could weigh on demand for high‑end home furnishings. Read More.

About RH

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.