RealReal (NASDAQ:REAL) Stock Price Down 7.7% – Here’s Why

The RealReal, Inc. (NASDAQ:REAL)’s share price fell 7.7% on Wednesday . The stock traded as low as $10.04 and last traded at $10.09. Approximately 1,604,429 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 3,385,347 shares. The stock had previously closed at $10.93.

Analysts Set New Price Targets

A number of research firms have recently issued reports on REAL. Wall Street Zen downgraded shares of RealReal from a “buy” rating to a “hold” rating in a report on Saturday, April 18th. BTIG Research reaffirmed a “buy” rating and issued a $17.00 target price on shares of RealReal in a research report on Wednesday, June 3rd. UBS Group reissued a “buy” rating on shares of RealReal in a research report on Wednesday, June 3rd. Robert W. Baird set a $13.00 price target on shares of RealReal in a research note on Friday, May 8th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RealReal in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $17.25.

RealReal Stock Performance

The stock has a market capitalization of $1.23 billion, a price-to-earnings ratio of -10.01 and a beta of 2.66. The business has a fifty day simple moving average of $10.67 and a 200 day simple moving average of $11.97.

RealReal (NASDAQ:REAL) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.01) EPS for the quarter, meeting the consensus estimate of ($0.01). The business had revenue of $189.72 million during the quarter, compared to analyst estimates of $187.82 million. During the same quarter last year, the company posted ($0.08) earnings per share. The company’s revenue was up 18.5% on a year-over-year basis. On average, sell-side analysts forecast that The RealReal, Inc. will post -0.14 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Gopal Ajay Madan sold 35,023 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total value of $323,962.75. Following the completion of the sale, the chief financial officer directly owned 1,145,278 shares in the company, valued at approximately $10,593,821.50. The trade was a 2.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Luke Thomas Friang sold 21,183 shares of the firm’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total value of $195,942.75. Following the transaction, the insider owned 530,676 shares in the company, valued at approximately $4,908,753. This trade represents a 3.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 166,830 shares of company stock valued at $1,543,178 in the last quarter. Corporate insiders own 2.66% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of REAL. Vanguard Group Inc. lifted its holdings in shares of RealReal by 6.9% in the fourth quarter. Vanguard Group Inc. now owns 6,336,596 shares of the company’s stock worth $99,991,000 after acquiring an additional 406,789 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of RealReal by 58.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock valued at $36,765,000 after purchasing an additional 1,489,939 shares during the last quarter. State Street Corp increased its position in RealReal by 4.2% during the 4th quarter. State Street Corp now owns 2,746,238 shares of the company’s stock worth $43,336,000 after purchasing an additional 111,677 shares in the last quarter. Two Sigma Investments LP lifted its stake in RealReal by 6.6% in the 3rd quarter. Two Sigma Investments LP now owns 2,628,770 shares of the company’s stock valued at $27,944,000 after purchasing an additional 162,804 shares during the last quarter. Finally, Divisadero Street Capital Management LP lifted its stake in RealReal by 652.5% in the 3rd 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. Institutional investors own 64.73% of the company’s stock.

About RealReal

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.