RH (NYSE:RH) Shares Up 5.6% – Here’s Why

RH (NYSE:RH)’s stock price was up 5.6% during mid-day trading on Wednesday. The stock traded as high as $126.99 and last traded at $126.39. Approximately 162,779 shares traded hands during trading, a decline of 84% from the average session volume of 1,002,044 shares. The stock had previously closed at $119.74.

Key RH News

Here are the key news stories impacting RH this week:

• Negative Sentiment: Goldman Sachs’s bearish outlook introduces a negative analyst signal for RH and could pressure the stock if investors interpret it as evidence that the company’s earnings recovery or valuation expectations are too optimistic. The Goldman Sachs Group Issues Pessimistic Forecast for RH Stock Price
• Neutral Sentiment: No new RH earnings release, guidance update, product announcement, or operating metric was included in the supplied articles. The most recent reported quarter showed revenue growth but lower year-over-year EPS, leaving the stock particularly sensitive to analyst revisions and expectations for future demand.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Telsey Advisory Group upped their price target on RH from $140.00 to $155.00 and gave the company a “market perform” rating in a research report on Friday, September 11th. Stifel Nicolaus decreased their price target on RH from $130.00 to $120.00 and set a “hold” rating for the company in a research note on Monday, September 28th. Morgan Stanley lowered their price objective on RH from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, September 11th. Robert W. Baird lowered their price objective on RH from $165.00 to $160.00 and set a “neutral” rating for the company in a research report on Friday, September 11th. Finally, TD Cowen reaffirmed a “buy” rating on shares of RH in a research note on Tuesday, October 6th. Seven analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $163.79.

RH Stock Performance

The firm has a market capitalization of $2.66 billion, a P/E ratio of 32.24, a price-to-earnings-growth ratio of 2.45 and a beta of 1.91. The company’s 50 day moving average is $134.02 and its 200-day moving average is $145.79. The company has a quick ratio of 0.37, a current ratio of 1.12 and a debt-to-equity ratio of 26.57.

RH (NYSE:RH) last posted its quarterly earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $2.32. RH had a net margin of 3.23% and a return on equity of 132.79%. The business had revenue of $922.15 million during the quarter, compared to analysts’ expectations of $915.09 million. During the same period last year, the company posted $2.93 earnings per share. The business’s quarterly revenue was up 2.6% on a year-over-year basis. As a group, equities analysts anticipate that RH will post 5.23 EPS for the current year.

Insider Buying and Selling

In other RH news, Director Mark Demilio sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $132.00, for a total value of $132,000.00. Following the transaction, the director owned 25,680 shares in the company, valued at approximately $3,389,760. This represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 26.90% of the stock is owned by insiders.

Institutional Trading of RH

Hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. acquired a new position in shares of RH during the first quarter valued at about $42,000. Himension Capital Singapore PTE. LTD. bought a new position in shares of RH in the first quarter valued at approximately $45,000. Allworth Financial LP increased its position in shares of RH by 80.4% during the 2nd quarter. Allworth Financial LP now owns 516 shares of the company’s stock valued at $85,000 after purchasing an additional 230 shares during the last quarter. Sterling Capital Management LLC increased its holdings in RH by 852.7% during the third quarter. Sterling Capital Management LLC now owns 524 shares of the company’s stock worth $64,000 after buying an additional 469 shares during the last quarter. Finally, TD Waterhouse Canada Inc. raised its holdings in shares of RH by 33.3% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 536 shares of the company’s stock worth $88,000 after purchasing an additional 134 shares during the period. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Company Profile

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality interiors. Its offerings include furniture, lighting, textiles, rugs, bath and plumbing fixtures, outdoor furnishings, décor, and related design products.

The company markets its products through a multichannel platform that includes RH Galleries, smaller design galleries, outlet locations, catalogs, and its digital channels. RH also operates businesses such as Waterworks, which specializes in luxury kitchen and bath products, and provides interior-design services through its design professionals.