RH (NYSE:RH) Receives $165.57 Consensus Price Target from Analysts

Shares of RH (NYSE:RH) have been given an average recommendation of “Hold” by the twenty research firms that are presently covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and seven have issued a buy recommendation on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $165.5714.

A number of research firms have issued reports on RH. Weiss Ratings upgraded RH from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, September 11th. Wall Street Zen upgraded shares of RH from a “sell” rating to a “hold” rating in a research report on Saturday, September 12th. Morgan Stanley cut their target price on shares of RH from $240.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Guggenheim restated a “buy” rating and issued a $200.00 price target on shares of RH in a report on Friday, September 11th. Finally, TD Cowen dropped their price objective on shares of RH from $220.00 to $190.00 and set a “buy” rating on the stock in a report on Friday, September 11th.

RH Stock Performance

RH stock opened at $127.02 on Tuesday. The firm has a market cap of $2.40 billion, a PE ratio of 22.60, a price-to-earnings-growth ratio of 2.32 and a beta of 1.85. The company has a current ratio of 1.12, a quick ratio of 0.37 and a debt-to-equity ratio of 26.57. The stock has a 50-day moving average price of $163.31 and a 200-day moving average price of $148.32. RH has a 1-year low of $106.30 and a 1-year high of $239.40.

RH (NYSE:RH) last announced its earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, beating the consensus estimate of $0.38 by $2.32. The company had revenue of $922.15 million for the quarter, compared to analyst estimates of $915.09 million. RH had a return on equity of 132.79% and a net margin of 3.23%.The firm’s revenue for the quarter was up 2.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.93 EPS. As a group, equities research analysts expect that RH will post 5.45 earnings per share for the current year.

Insider Activity

In related news, CEO Gary Friedman sold 48,238 shares of the business’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $158.66, for a total value of $7,653,441.08. Following the completion of the sale, the chief executive officer directly owned 3,226,337 shares of the company’s stock, valued at $511,890,628.42. The trade was a 1.47% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Carlos Alberini purchased 11,388 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The shares were purchased at an average cost of $160.90 per share, for a total transaction of $1,832,329.20. Following the completion of the purchase, the director owned 32,190 shares in the company, valued at $5,179,371. This trade represents a 54.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 127,445 shares of company stock worth $21,079,824 in the last three months. Company insiders own 26.90% of the company’s stock.

Institutional Trading of RH

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. increased its holdings in RH by 41.7% during the 2nd quarter. BlackRock Inc. now owns 1,978,271 shares of the company’s stock worth $325,881,000 after purchasing an additional 581,710 shares in the last quarter. Alyeska Investment Group L.P. lifted its holdings in shares of RH by 4.4% in the second quarter. Alyeska Investment Group L.P. now owns 1,708,997 shares of the company’s stock valued at $281,523,000 after purchasing an additional 72,674 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of RH by 33.2% during the first quarter. Dimensional Fund Advisors LP now owns 316,111 shares of the company’s stock valued at $44,193,000 after buying an additional 78,782 shares during the last quarter. Bank of New York Mellon Corp raised its position in RH by 23.5% in the 1st quarter. Bank of New York Mellon Corp now owns 259,969 shares of the company’s stock valued at $36,349,000 after buying an additional 49,384 shares during the last quarter. Finally, Bank of America Corp DE raised its position in RH by 166.5% in the 1st quarter. Bank of America Corp DE now owns 238,681 shares of the company’s stock valued at $33,372,000 after buying an additional 149,127 shares during the last quarter. Institutional investors own 90.17% of the company’s stock.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH’s latest earnings call highlighted an assertive expansion strategy, including its Estates concept and ambitions to build the London market. Management maintained a confident tone, suggesting potential long-term growth from new formats, geographic expansion, and premium offerings. RH Earnings Call: Estates, London Power Growth Ambitions
• Neutral Sentiment: An industry review identified RH as one of several luxury consumer brands with revenue growth potential despite significant share-price declines. The article indicates that investors are balancing RH’s brand strength and sales opportunities against a difficult operating environment. 3 Luxury Consumer Brands to Watch in a Beaten-Down Sector
• Negative Sentiment: A bearish analysis reiterated a “sell” view, arguing that persistently high inflation and interest rates could continue to pressure RH’s luxury demand, financing costs, and valuation. These concerns are particularly relevant given the company’s substantial leverage and relatively thin net margin. I Will Keep Rating RH A Sell – As Long As Inflation And Interest Rates Are High

RH Company Profile

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that offers products for residential and hospitality interiors. Its collections include furniture, lighting, textiles, rugs, bath and hardware, outdoor furnishings, and decorative accessories across a range of design categories.

The company sells through a network of RH Galleries, outlet locations, source books and its digital platforms. Its galleries are designed as immersive retail spaces that showcase coordinated room settings and related collections.