RH (NYSE:RH) Stock Price Down 6.1% on Analyst Downgrade

RH (NYSE:RH) shares traded down 6.1% on Tuesday after The Goldman Sachs Group lowered their price target on the stock from $101.00 to $88.00. The Goldman Sachs Group currently has a sell rating on the stock. RH traded as low as $111.00 and last traded at $111.4110. 368,515 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 1,258,158 shares. The stock had previously closed at $118.65.

A number of other brokerages have also weighed in on RH. Wells Fargo & Company decreased their price target on shares of RH from $225.00 to $180.00 and set an “overweight” rating on the stock in a report on Wednesday, April 1st. Stifel Nicolaus reiterated a “hold” rating and issued a $165.00 price target (down from $320.00) on shares of RH in a report on Friday, December 12th. Guggenheim reduced their target price on shares of RH from $275.00 to $200.00 and set a “buy” rating on the stock in a report on Wednesday, April 1st. Weiss Ratings restated a “sell (d+)” rating on shares of RH in a report on Monday, March 23rd. Finally, Citigroup reduced their target price on shares of RH from $183.00 to $150.00 and set a “neutral” rating on the stock in a report on Thursday, April 2nd. Seven equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, RH currently has a consensus rating of “Hold” and an average price target of $176.47.

Insider Buying and Selling at RH

In other RH news, insider Eri Chaya sold 11,000 shares of the business’s stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total value of $1,517,120.00. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Mark S. Demilio sold 2,254 shares of the business’s stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total transaction of $495,880.00. Following the completion of the transaction, the director owned 19,962 shares in the company, valued at $4,391,640. This represents a 10.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 29,254 shares of company stock worth $4,306,520 in the last 90 days. Company insiders own 27.00% of the company’s stock.

Hedge Funds Weigh In On RH

A number of institutional investors have recently added to or reduced their stakes in the company. Senvest Management LLC lifted its holdings in RH by 30.1% in the 4th quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock worth $150,948,000 after buying an additional 194,773 shares in the last quarter. Durable Capital Partners LP lifted its holdings in RH by 125.1% in the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after buying an additional 359,101 shares in the last quarter. Alliancebernstein L.P. lifted its holdings in RH by 66.1% in the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock worth $116,546,000 after buying an additional 228,229 shares in the last quarter. Two Sigma Investments LP lifted its holdings in RH by 40.9% in the 3rd quarter. Two Sigma Investments LP now owns 359,093 shares of the company’s stock worth $72,953,000 after buying an additional 104,154 shares in the last quarter. Finally, Morgan Stanley lifted its holdings in RH by 0.8% in the 4th quarter. Morgan Stanley now owns 353,996 shares of the company’s stock worth $63,419,000 after buying an additional 2,658 shares in the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Price Performance

The company’s 50-day moving average price is $162.22 and its two-hundred day moving average price is $176.02. The company has a market cap of $2.24 billion, a P/E ratio of 18.92, a P/E/G ratio of 1.22 and a beta of 2.10. The company has a current ratio of 1.19, a quick ratio of 0.26 and a debt-to-equity ratio of 51.28.

RH (NYSE:RH) last released its earnings results on Tuesday, March 31st. The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $2.21 by ($0.68). The company had revenue of $842.62 million during the quarter, compared to the consensus estimate of $873.48 million. RH had a negative return on equity of 567.82% and a net margin of 3.63%.RH’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the firm posted $1.58 EPS. As a group, sell-side analysts expect that RH will post 4.39 earnings per share for the current year.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.