RH (NYSE:RH) Stock Falls 6.1% – Here’s What Happened

RH (NYSE:RH) shares were down 6.1% on Tuesday. The stock traded as low as $139.50 and last traded at $137.65. Approximately 45,909 shares were traded during mid-day trading, a decline of 95% from the average session volume of 995,912 shares. The stock had previously closed at $146.52.

Key Headlines Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH benefited from a broader rotation into housing stocks, while heavy short interest may have accelerated buying as short sellers covered positions. Why RH Stock Jumped 20% in October
• Positive Sentiment: A reported price-target increase for RH’s depositary receipt provides an additional positive sentiment signal, although the target applies to an overseas-listed instrument and may have limited direct relevance to NYSE shares. RH Depositary Receipt Price Target Increased

Wall Street Analyst Weigh In

RH has been the topic of several research reports. The Goldman Sachs Group cut their price objective on shares of RH from $164.00 to $140.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 20th. Robert W. Baird reduced 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. Wells Fargo & Company cut their target price on RH from $225.00 to $175.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Morgan Stanley decreased their price target on shares of RH from $240.00 to $210.00 and set an “overweight” rating for the company in a research note on Friday, September 11th. Finally, Guggenheim reissued a “buy” rating and issued a $200.00 price objective on shares of RH in a research report on Friday, September 11th. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, RH currently has a consensus rating of “Hold” and an average price target of $163.79.

RH Stock Down 6.5%

The firm has a market cap of $2.59 billion, a price-to-earnings ratio of 24.34, a P/E/G ratio of 2.80 and a beta of 1.91. The company has a debt-to-equity ratio of 26.57, a quick ratio of 0.37 and a current ratio of 1.12. The firm has a fifty day simple moving average of $130.95 and a 200-day simple moving average of $153.79.

RH (NYSE:RH) last released its quarterly earnings data on Thursday, September 10th. The company reported $2.70 earnings per share 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 the consensus estimate of $915.09 million. RH had a return on equity of 132.79% and a net margin of 3.23%. RH’s revenue for the quarter was up 2.6% on a year-over-year basis. During the same quarter last year, the business posted $2.93 EPS. As a group, sell-side analysts expect that RH will post 5.19 EPS for the current year.

Insider Activity

In related news, Director Mark Demilio sold 1,000 shares of the stock in a transaction 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 sale, the director owned 25,680 shares in the company, valued at approximately $3,389,760. This trade represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 26.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. lifted its stake in RH by 41.7% in the second quarter. BlackRock Inc. now owns 1,978,271 shares of the company’s stock worth $325,881,000 after acquiring an additional 581,710 shares during the period. Alyeska Investment Group L.P. lifted its holdings in shares of RH by 4.4% during 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 during the last quarter. Dimensional Fund Advisors LP boosted its holdings in RH by 33.2% in the first quarter. Dimensional Fund Advisors LP now owns 316,111 shares of the company’s stock worth $44,193,000 after acquiring an additional 78,782 shares in the last quarter. Bank of New York Mellon Corp increased its stake in RH by 23.5% during 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 purchasing an additional 49,384 shares in the last quarter. Finally, Bank of America Corp DE increased its position in shares of RH by 166.5% during the first quarter. Bank of America Corp DE now owns 238,681 shares of the company’s stock valued at $33,372,000 after acquiring an additional 149,127 shares in the last quarter. Institutional investors 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.