RH (NYSE:RH) Trading Down 6% – Here’s Why

RH (NYSE:RH)’s stock price traded down 6% on Friday . The company traded as low as $147.00 and last traded at $149.7490. 594,811 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 1,143,033 shares. The stock had previously closed at $159.32.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH beat Q1 expectations, reporting adjusted loss of $1.97 per share versus consensus for a $2.13 loss, with revenue of $800.3 million topping estimates. Article Title
• Positive Sentiment: Management raised FY2026 guidance, now calling for revenue growth of 4.5% to 8.0% and adjusted EBITDA margin of 14.2% to 16.0%, which supports the view that demand remains intact over the full year. Article Title
• Neutral Sentiment: Several Wall Street firms reiterated constructive views, including Guggenheim’s Buy and Baird’s higher $150 target, suggesting analysts still see upside despite short-term volatility. Article Title
• Neutral Sentiment: RH also received a new Strong Sell ranking from Zacks and multiple reports highlighted execution risks, showing sentiment remains mixed after the update. Article Title
• Negative Sentiment: The stock is being pressured by tariff-related sourcing changes that delayed about $45 million of revenue into future periods, raising concerns about near-term growth and margins. Article Title
• Negative Sentiment: RH also posted a GAAP net loss of $13.7 million in the quarter, and investors appear focused on the immediate earnings pressure rather than the improved outlook. Article Title

Wall Street Analyst Weigh In

RH has been the topic of a number of analyst reports. Stifel Nicolaus increased their price target on shares of RH from $110.00 to $130.00 and gave the company a “hold” rating in a research report on Friday. Morgan Stanley reiterated an “overweight” rating and issued a $240.00 price target on shares of RH in a research report on Monday, May 11th. KeyCorp restated a “sector weight” rating on shares of RH in a report on Friday. Telsey Advisory Group dropped their target price on shares of RH from $165.00 to $140.00 and set a “market perform” rating on the stock in a report on Wednesday, April 1st. Finally, TD Cowen dropped their target price on shares of RH from $265.00 to $200.00 and set a “buy” rating on the stock in a report on Monday, March 30th. Seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, RH currently has a consensus rating of “Hold” and a consensus target price of $171.47.

RH Stock Down 6.1%

The company has a market capitalization of $2.83 billion, a P/E ratio of 23.68, a PEG ratio of 2.73 and a beta of 1.91. The firm’s 50 day moving average price is $134.41 and its two-hundred day moving average price is $162.86. The company has a current ratio of 1.19, a quick ratio of 0.31 and a debt-to-equity ratio of 51.28.

RH (NYSE:RH) last issued its quarterly earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share for the quarter, topping the consensus estimate of ($2.13) by $0.16. The company had revenue of $800.33 million during the quarter, compared to analysts’ expectations of $792.55 million. RH had a net margin of 3.63% and a negative return on equity of 567.82%. The business’s quarterly revenue was down 1.7% on a year-over-year basis. During the same period last year, the business earned $0.13 EPS. Equities research analysts forecast that RH will post 5.35 EPS for the current year.

Insider Buying and Selling at RH

In other news, insider Eri Chaya sold 11,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total transaction of $1,517,120.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Over the last three months, insiders have sold 25,000 shares of company stock worth $3,370,440. 26.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On RH

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Senvest Management LLC grew its stake in shares of RH by 30.1% in the fourth quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock valued at $150,948,000 after buying an additional 194,773 shares in the last quarter. Durable Capital Partners LP grew its stake in shares of RH by 125.1% in the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock valued at $122,119,000 after buying an additional 359,101 shares in the last quarter. Alliancebernstein L.P. grew its stake in shares of RH by 66.1% in the third quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock valued at $116,546,000 after buying an additional 228,229 shares in the last quarter. Two Sigma Investments LP grew its stake in shares of RH by 40.9% in the third quarter. Two Sigma Investments LP now owns 359,093 shares of the company’s stock valued at $72,953,000 after buying an additional 104,154 shares in the last quarter. Finally, Morgan Stanley grew its stake in shares of RH by 0.8% in the fourth quarter. Morgan Stanley now owns 353,996 shares of the company’s stock valued at $63,419,000 after buying an additional 2,658 shares in the last quarter. 90.17% of the stock is owned by institutional investors.

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.