RealReal Target of Unusually Large Options Trading (NASDAQ:REAL)

The RealReal, Inc. (NASDAQ:REAL) was the recipient of some unusual options trading activity on Wednesday. Stock traders acquired 5,038 call options on the stock. This represents an increase of approximately 122% compared to the typical volume of 2,274 call options.

RealReal Trading Down 5.3%

Shares of REAL opened at $11.17 on Thursday. The business’s 50-day moving average price is $11.40 and its 200 day moving average price is $11.13. The stock has a market capitalization of $1.36 billion, a P/E ratio of -9.97 and a beta of 2.69. RealReal has a 1-year low of $7.21 and a 1-year high of $17.39.

RealReal (NASDAQ:REAL) last announced its earnings results on Thursday, August 6th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.02) by $0.01. The firm had revenue of $192.57 million during the quarter, compared to analyst estimates of $188.11 million. The company’s revenue for the quarter was up 16.6% compared to the same quarter last year. On average, research analysts predict that RealReal will post -0.14 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Luke Thomas Friang sold 21,183 shares of RealReal stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total transaction of $195,942.75. Following the sale, the insider owned 530,676 shares of the company’s stock, valued at approximately $4,908,753. The trade was a 3.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Levesque Rati Sahi sold 81,194 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $751,044.50. Following the transaction, the chief executive officer owned 1,581,276 shares in the company, valued at $14,626,803. This represents a 4.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 166,830 shares of company stock worth $1,543,178. Corporate insiders own 2.66% of the company’s stock.

Institutional Trading of RealReal

Several large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of RealReal during the 2nd quarter worth about $134,510,000. Arrowstreet Capital Limited Partnership lifted its holdings in RealReal by 58.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock worth $36,765,000 after purchasing an additional 1,489,939 shares during the last quarter. Renaissance Technologies LLC lifted its position in RealReal by 117.9% during the 1st quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company’s stock worth $14,947,000 after acquiring an additional 890,700 shares during the last quarter. AQR Capital Management LLC boosted its stake in RealReal by 589.2% during the 1st quarter. AQR Capital Management LLC now owns 887,997 shares of the company’s stock valued at $4,786,000 after purchasing an additional 759,160 shares during the period. Finally, Landscape Capital Management L.L.C. acquired a new position in shares of RealReal during the second quarter worth approximately $7,937,000. 64.73% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

REAL has been the subject of several research reports. Robert W. Baird set a $13.00 price objective on shares of RealReal in a research report on Friday, May 8th. Roth Capital reiterated a “buy” rating and issued a $19.00 target price on shares of RealReal in a report on Friday, August 7th. BTIG Research reissued a “buy” rating and set a $17.00 target price on shares of RealReal in a research note on Wednesday, June 3rd. Wall Street Zen cut shares of RealReal from a “buy” rating to a “hold” rating in a report on Saturday, April 18th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of RealReal in a research report on Friday, July 17th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, RealReal currently has an average rating of “Moderate Buy” and an average price target of $17.75.

About RealReal

The RealReal, Inc (NASDAQ: REAL) operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal’s business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.