RH (NYSE:RH) Shares Gap Up – Still a Buy?

by · The Markets Daily

RH (NYSE:RH – Get Free Report)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $153.31, but opened at $161.75. RH shares last traded at $170.51, with a volume of 1,252,988 shares traded.

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. Wells Fargo & Company lifted their price target on shares of RH from $275.00 to $295.00 and gave the company an “overweight” rating in a report on Monday, September 8th. Guggenheim reiterated a “buy” rating and set a $300.00 target price on shares of RH in a research report on Friday, September 12th. Zacks Research raised shares of RH from a “strong sell” rating to a “hold” rating in a report on Monday, December 1st. Barclays decreased their price target on shares of RH from $436.00 to $385.00 and set an “overweight” rating on the stock in a research note on Friday, September 12th. Finally, Robert W. Baird dropped their price objective on shares of RH from $235.00 to $180.00 and set a “neutral” rating for the company in a research note on Friday. Nine investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $238.81.

Get Our Latest Stock Analysis on RH

RH Stock Up 8.6%

The business has a 50 day moving average price of $168.35 and a 200 day moving average price of $194.17. The stock has a market cap of $3.12 billion, a P/E ratio of 31.13, a PEG ratio of 0.75 and a beta of 2.09.

RH (NYSE:RH – Get Free Report) last posted its quarterly earnings data 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 business had revenue of $883.81 million for the quarter, compared to analysts’ expectations of $883.65 million. RH had a net margin of 3.20% and a negative return on equity of 113.58%. During the same quarter in the previous year, the firm earned $2.48 EPS. RH’s revenue was up 8.9% compared to the same quarter last year. On average, research analysts expect that RH will post 4.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Mark S. Demilio sold 2,000 shares of RH stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $236.13, for a total transaction of $472,260.00. Following the completion of the sale, the director owned 24,616 shares in the company, valued at $5,812,576.08. This trade represents a 7.51% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 27.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RH

A number of institutional investors have recently modified their holdings of RH. Quinn Opportunity Partners LLC purchased a new position in shares of RH in the 2nd quarter worth approximately $378,000. Norges Bank purchased a new stake in RH during the second quarter valued at approximately $29,083,000. Senvest Management LLC boosted its stake in RH by 54.6% in the second quarter. Senvest Management LLC now owns 733,894 shares of the company’s stock valued at $138,713,000 after acquiring an additional 259,200 shares in the last quarter. Intech Investment Management LLC grew its holdings in RH by 29.0% in the first quarter. Intech Investment Management LLC now owns 9,790 shares of the company’s stock worth $2,295,000 after purchasing an additional 2,198 shares during the last quarter. Finally, Twin Lakes Capital Management LLC purchased a new position in RH in the second quarter worth $3,213,000. 90.17% of the stock is owned by hedge funds and other institutional investors.

About RH

(Get Free Report)

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.

Further Reading