RH (NYSE:RH) Receives $165.57 Average Target Price from Analysts

RH (NYSE:RH) has earned an average recommendation of “Hold” from the twenty analysts that are presently covering the firm, Marketbeat reports. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and seven have issued a buy rating on the company. The average 12-month price target among analysts that have covered the stock in the last year is $165.5714.

RH has been the topic of several analyst reports. UBS Group set a $190.00 price target on shares of RH in a research report on Friday, September 11th. KeyCorp reaffirmed a “sector weight” rating on shares of RH in a research report on Friday, June 12th. Weiss Ratings upgraded RH from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, September 11th. TD Cowen reduced their price target on RH from $220.00 to $190.00 and set a “buy” rating for the company in a research report on Friday, September 11th. Finally, Morgan Stanley reduced their price target on RH from $240.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, September 11th.

RH News Summary

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH opened RH Estates, The Gallery on Greenwich Avenue in Connecticut, marking the North American debut of its RH Estates concept and the first freestanding RH Estates Gallery worldwide. The immersive destination expands RH’s luxury retail and design footprint and could support longer-term brand engagement and revenue growth. RH Unveils RH Estates, The Gallery on Greenwich Avenue
• Positive Sentiment: The company said RH Estates is being expanded globally, following earlier showcases in Milan and the opening of RH London, with a second freestanding RH Estates Gallery planned later this year. The rollout reinforces management’s strategy of using large-format galleries to sell integrated luxury home furnishings and design services.
• Neutral Sentiment: The announcement did not provide store-level sales forecasts, investment costs, expected margins, or a change to financial guidance. As a result, the opening is a strategic brand and growth update rather than an immediate earnings catalyst.
• Negative Sentiment: RH’s recent market weakness and relatively high business leverage may be keeping investors focused on execution, consumer demand, and the profitability of new gallery investments. The Greenwich opening is positive for the brand, but its financial payoff will likely take time to develop.

RH Stock Down 0.2%

RH stock opened at $126.54 on Tuesday. The company has a debt-to-equity ratio of 26.57, a current ratio of 1.12 and a quick ratio of 0.37. The stock has a market capitalization of $2.40 billion, a P/E ratio of 22.52, a P/E/G ratio of 2.32 and a beta of 1.85. RH has a fifty-two week low of $106.30 and a fifty-two week high of $239.40. The business has a 50-day moving average of $162.53 and a 200-day moving average of $148.16.

RH (NYSE:RH) last issued its quarterly earnings results on Thursday, September 10th. The company reported $2.70 earnings per share for the quarter, topping the consensus estimate of $0.38 by $2.32. RH had a net margin of 3.23% and a return on equity of 132.79%. The company had revenue of $922.15 million during the quarter, compared to analysts’ expectations of $915.09 million. During the same period last year, the business earned $2.93 EPS. The business’s quarterly revenue was up 2.6% on a year-over-year basis. On average, sell-side analysts anticipate that RH will post 5.45 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Gary G. Friedman sold 69,069 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $169.48, for a total transaction of $11,705,814.12. Following the transaction, the chief executive officer directly owned 3,282,268 shares of the company’s stock, valued at approximately $556,278,780.64. The trade was a 2.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark S. Demilio sold 2,445 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $168.44, for a total value of $411,835.80. Following the completion of the sale, the director owned 25,680 shares in the company, valued at approximately $4,325,539.20. This trade represents a 8.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 127,445 shares of company stock valued at $21,079,824 in the last quarter. Company insiders own 26.90% of the company’s stock.

Hedge Funds Weigh In On RH

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. raised its position in shares of RH by 41.7% in the second quarter. BlackRock Inc. now owns 1,978,271 shares of the company’s stock valued at $325,881,000 after purchasing an additional 581,710 shares during the period. Alyeska Investment Group L.P. boosted its holdings in shares of RH by 4.4% during the 2nd quarter. Alyeska Investment Group L.P. now owns 1,708,997 shares of the company’s stock worth $281,523,000 after buying an additional 72,674 shares during the period. Dimensional Fund Advisors LP grew its stake in RH by 33.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 316,111 shares of the company’s stock valued at $44,193,000 after buying an additional 78,782 shares during the last quarter. Bank of New York Mellon Corp grew its stake in RH by 23.5% in the 1st quarter. Bank of New York Mellon Corp now owns 259,969 shares of the company’s stock valued at $36,349,000 after buying an additional 49,384 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in RH by 166.5% in the 1st quarter. Bank of America Corp DE now owns 238,681 shares of the company’s stock valued at $33,372,000 after acquiring an additional 149,127 shares during the period. 90.17% of the stock is currently owned by institutional investors and hedge funds.

RH Company Profile

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that offers products for residential and hospitality interiors. Its collections include furniture, lighting, textiles, rugs, bath and hardware, outdoor furnishings, and decorative accessories across a range of design categories.

The company sells through a network of RH Galleries, outlet locations, source books and its digital platforms. Its galleries are designed as immersive retail spaces that showcase coordinated room settings and related collections.