RH (NYSE:RH) Price Target Lowered to $225.00 at Wells Fargo & Company

RH (NYSE:RH) had its price objective decreased by Wells Fargo & Company from $250.00 to $225.00 in a research note published on Friday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the stock.

A number of other research firms have also commented on RH. TD Cowen increased their price objective on RH from $200.00 to $265.00 and gave the company a “buy” rating in a research note on Tuesday, January 20th. Bank of America cut their target price on shares of RH from $200.00 to $170.00 and set an “underperform” rating for the company in a research note on Friday, December 12th. Telsey Advisory Group reduced their target price on shares of RH from $220.00 to $185.00 and set a “market perform” rating on the stock in a report on Friday, December 12th. KeyCorp reaffirmed a “sector weight” rating on shares of RH in a research note on Friday, December 12th. Finally, Jefferies Financial Group reiterated a “hold” rating on shares of RH in a report on Tuesday, January 27th. Eight equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, RH currently has a consensus rating of “Hold” and an average target price of $226.81.

RH Price Performance

RH stock opened at $128.39 on Friday. RH has a 1 year low of $123.03 and a 1 year high of $264.58. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19. The stock’s 50 day moving average price is $195.18 and its 200 day moving average price is $189.11. The firm has a market cap of $2.41 billion, a P/E ratio of 23.17, a PEG ratio of 0.55 and a beta of 2.14.

RH (NYSE:RH) last announced its earnings results on Thursday, December 11th. The company reported $1.71 EPS for the quarter, missing analysts’ consensus estimates of $2.13 by ($0.42). RH had a net margin of 3.22% and a negative return on equity of 161.72%. The company had revenue of $883.81 million for the quarter, compared to analyst estimates of $883.65 million. During the same quarter last year, the company posted $2.48 EPS. RH’s quarterly revenue was up 8.9% compared to the same quarter last year. On average, sell-side analysts expect that RH will post 4.39 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Mark S. Demilio sold 2,254 shares of the stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total transaction of $495,880.00. Following the transaction, the director directly owned 19,962 shares in the company, valued at approximately $4,391,640. This represents a 10.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders sold 5,154 shares of company stock worth $1,100,148 in the last quarter. Corporate insiders own 27.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RH. United Services Automobile Association purchased a new position in shares of RH during the 1st quarter worth about $231,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in RH by 6.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,622 shares of the company’s stock valued at $9,053,000 after purchasing an additional 2,244 shares during the period. Bank of Montreal Can increased its position in RH by 74.9% during the second quarter. Bank of Montreal Can now owns 9,415 shares of the company’s stock worth $1,780,000 after purchasing an additional 4,031 shares during the last quarter. Boston Partners increased its position in RH by 33.3% during the second quarter. Boston Partners now owns 6,074 shares of the company’s stock worth $1,148,000 after purchasing an additional 1,517 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in RH by 0.7% during the second quarter. Geode Capital Management LLC now owns 265,762 shares of the company’s stock worth $50,240,000 after purchasing an additional 1,829 shares during the period. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: Wells Fargo lowered its price target on RH from $250 to $225 but kept an “overweight” rating, which still implies large upside from current levels. This preserves institutional support and a bullish outlook among some analysts. Wells Fargo lowers RH price target
• Neutral Sentiment: Analyst research/stock‑forecast pages are being updated (see RH stock forecasts), which can drive intraday trading as investors compare updated models and PT revisions. RH (RH) Stock Forecasts
• Negative Sentiment: Recent quarterly results (reported Dec. 11) showed an EPS miss: $1.71 vs. consensus $2.13, with slim net margins (~3.2%) and a large year‑over‑year EPS decline from the prior year. The earnings disappointment is a key near‑term driver of bearish sentiment.
• Negative Sentiment: Weak returns and leverage: RH reported a negative return on equity (~‑161.7%) and an extremely high debt‑to‑equity ratio (~944), highlighting balance‑sheet and profitability risks that pressure valuation and investor confidence.
• Negative Sentiment: Technical/price context is unfavorable: the stock is trading well below its 50‑day (~$196) and 200‑day (~$190) moving averages and sits nearer its 12‑month low, signalling continued downward momentum that can amplify selling.

RH Company Profile

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.