Zacks Research Downgrades RH (NYSE:RH) to Strong Sell

RH (NYSE:RH) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday,Zacks.com reports.

A number of other research analysts have also commented on RH. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of RH in a research report on Wednesday, December 24th. Cowen reissued a “buy” rating on shares of RH in a research note on Friday, September 12th. Telsey Advisory Group dropped their price target on RH from $220.00 to $185.00 and set a “market perform” rating for the company in a research note on Friday, December 12th. Citigroup lifted their price target on shares of RH from $200.00 to $233.00 and gave the company a “neutral” rating in a report on Wednesday, September 3rd. Finally, Guggenheim restated a “buy” rating and issued a $300.00 price objective on shares of RH in a report on Friday, September 12th. Nine research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, RH currently has an average rating of “Hold” and a consensus price target of $225.56.

RH Stock Down 1.6%

Shares of RH stock opened at $178.97 on Tuesday. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19. RH has a 52-week low of $123.03 and a 52-week high of $455.84. The company’s 50 day moving average price is $165.68 and its 200-day moving average price is $193.71. The stock has a market capitalization of $3.36 billion, a price-to-earnings ratio of 32.31, a P/E/G ratio of 1.36 and a beta of 2.09.

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

Hedge Funds Weigh In On RH

Several institutional investors and hedge funds have recently added to or reduced their stakes in RH. Ridgewood Investments LLC boosted its holdings in shares of RH by 19.8% during the 2nd quarter. Ridgewood Investments LLC now owns 303 shares of the company’s stock valued at $57,000 after buying an additional 50 shares in the last quarter. Farther Finance Advisors LLC lifted its position in RH by 67.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 151 shares of the company’s stock valued at $29,000 after acquiring an additional 61 shares during the period. Arizona State Retirement System boosted its stake in RH by 1.4% during the third quarter. Arizona State Retirement System now owns 4,434 shares of the company’s stock worth $901,000 after acquiring an additional 62 shares in the last quarter. UMB Bank n.a. grew its holdings in RH by 53.8% in the second quarter. UMB Bank n.a. now owns 180 shares of the company’s stock worth $34,000 after purchasing an additional 63 shares during the period. Finally, Steward Partners Investment Advisory LLC increased its stake in shares of RH by 12.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 605 shares of the company’s stock valued at $114,000 after purchasing an additional 65 shares in the last quarter. Hedge funds and other institutional investors own 90.17% of the company’s stock.

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.