RH (NYSE:RH) Shares Gap Down Following Weak Earnings

Shares of RH (NYSE:RH) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $277.05, but opened at $233.00. RH shares last traded at $233.50, with a volume of 809,174 shares trading hands.

The company reported ($0.40) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.32). RH had a negative return on equity of 28.79% and a net margin of 2.72%. The firm had revenue of $726.96 million for the quarter, compared to analyst estimates of $725.15 million. During the same period in the previous year, the business posted $2.21 EPS. The business’s quarterly revenue was down 1.7% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Wells Fargo & Company reduced their price objective on shares of RH from $360.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday. Robert W. Baird reduced their price objective on shares of RH from $300.00 to $275.00 and set a “neutral” rating on the stock in a research note on Friday. Loop Capital raised their price objective on shares of RH from $260.00 to $350.00 and gave the company a “hold” rating in a research note on Monday, April 1st. The Goldman Sachs Group raised their price objective on shares of RH from $201.00 to $264.00 and gave the company a “sell” rating in a research note on Monday, April 1st. Finally, JPMorgan Chase & Co. raised their price objective on shares of RH from $329.00 to $345.00 and gave the company an “overweight” rating in a research note on Thursday, March 28th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $321.85.

Insider Activity

In related news, Director Mark S. Demilio sold 1,000 shares of RH stock in a transaction dated Tuesday, April 9th. The shares were sold at an average price of $288.99, for a total transaction of $288,990.00. Following the completion of the sale, the director now owns 11,991 shares of the company’s stock, valued at approximately $3,465,279.09. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other RH news, insider Eri Chaya sold 100,000 shares of the business’s stock in a transaction dated Monday, May 6th. The shares were sold at an average price of $279.92, for a total value of $27,992,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Mark S. Demilio sold 1,000 shares of the business’s stock in a transaction dated Tuesday, April 9th. The shares were sold at an average price of $288.99, for a total transaction of $288,990.00. Following the completion of the sale, the director now directly owns 11,991 shares of the company’s stock, valued at approximately $3,465,279.09. The disclosure for this sale can be found here. Insiders sold a total of 103,000 shares of company stock valued at $28,897,430 in the last quarter. Company insiders own 28.10% of the company’s stock.

Institutional Trading of RH

Institutional investors have recently bought and sold shares of the business. Janus Henderson Group PLC raised its position in shares of RH by 0.4% in the 1st quarter. Janus Henderson Group PLC now owns 8,580 shares of the company’s stock valued at $2,986,000 after buying an additional 38 shares in the last quarter. Insight Advisors LLC PA raised its position in shares of RH by 2.8% in the 1st quarter. Insight Advisors LLC PA now owns 1,447 shares of the company’s stock valued at $504,000 after buying an additional 39 shares in the last quarter. Tradition Wealth Management LLC raised its position in shares of RH by 14.8% in the 4th quarter. Tradition Wealth Management LLC now owns 350 shares of the company’s stock valued at $102,000 after buying an additional 45 shares in the last quarter. Texas Permanent School Fund Corp raised its position in shares of RH by 0.4% in the 1st quarter. Texas Permanent School Fund Corp now owns 13,378 shares of the company’s stock valued at $4,659,000 after buying an additional 47 shares in the last quarter. Finally, New York Life Investment Management LLC raised its position in shares of RH by 4.1% in the 4th quarter. New York Life Investment Management LLC now owns 1,703 shares of the company’s stock valued at $496,000 after buying an additional 67 shares in the last quarter. Institutional investors own 90.17% of the company’s stock.

RH Trading Down 17.1 %

The firm’s 50-day moving average price is $265.77 and its 200 day moving average price is $274.34. The company has a market capitalization of $4.21 billion, a price-to-earnings ratio of 63.64, a PEG ratio of 0.91 and a beta of 2.51.

About RH

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.