RH (NYSE:RH) Shares Down 6.1% – Should You Sell?

RH (NYSE:RH)’s stock price fell 6.1% during trading on Tuesday. The stock traded as low as $139.50 and last traded at $137.65. 45,909 shares changed hands during trading, a decline of 95% from the average session volume of 995,912 shares. The stock had previously closed at $146.52.

RH News Summary

Here are the key news stories impacting RH this week:

• Neutral Sentiment: The only RH-related item is a general stock-research article; no analyst conclusions or other details are included, so it does not provide a clear catalyst. RH: What Are Researchers Saying About This Stock?

Analysts Set New Price Targets

Several brokerages have commented on RH. The Goldman Sachs Group cut their price target on shares of RH from $164.00 to $140.00 and set a “neutral” rating for the company in a report on Tuesday, October 20th. Wall Street Zen upgraded RH from a “sell” rating to a “hold” rating in a research report on Saturday, September 12th. Guggenheim reiterated a “buy” rating and set a $200.00 price target on shares of RH in a research report on Friday, September 11th. Morgan Stanley lowered their target price on shares of RH from $240.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Finally, Robert W. Baird cut their price target on shares of RH from $165.00 to $160.00 and set a “neutral” rating for the company in a research note on Friday, September 11th. Seven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $163.79.

RH Stock Down 5.2%

The company’s 50-day moving average price is $130.83 and its 200 day moving average price is $152.98. The company has a debt-to-equity ratio of 26.57, a quick ratio of 0.37 and a current ratio of 1.12. The stock has a market cap of $2.60 billion, a PE ratio of 24.45, a price-to-earnings-growth ratio of 2.59 and a beta of 1.92.

RH (NYSE:RH) last announced its earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, beating analysts’ consensus estimates of $0.38 by $2.32. The business had revenue of $922.15 million during the quarter, compared to analysts’ expectations of $915.09 million. RH had a net margin of 3.23% and a return on equity of 132.79%. The firm’s revenue was up 2.6% on a year-over-year basis. During the same period in the prior year, the company earned $2.93 earnings per share. As a group, analysts forecast that RH will post 5.19 EPS for the current fiscal year.

Insider Activity

In related news, Director Mark Demilio sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $132.00, for a total value of $132,000.00. Following the completion of the sale, the director directly owned 25,680 shares of the company’s stock, valued at approximately $3,389,760. This represents a 3.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 26.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RH. D.B. Root & Company LLC grew its stake in RH by 1.4% in the third quarter. D.B. Root & Company LLC now owns 8,531 shares of the company’s stock worth $1,039,000 after purchasing an additional 118 shares in the last quarter. Fulcrum Asset Management LLP lifted its holdings in shares of RH by 12,936.7% in the 3rd quarter. Fulcrum Asset Management LLP now owns 3,911 shares of the company’s stock worth $478,000 after buying an additional 3,881 shares during the period. 180 Wealth Advisors LLC lifted its holdings in shares of RH by 5.3% in the 3rd quarter. 180 Wealth Advisors LLC now owns 1,743 shares of the company’s stock worth $212,000 after buying an additional 88 shares during the period. Parallel Advisors LLC raised its holdings in shares of RH by 24.7% in the third quarter. Parallel Advisors LLC now owns 460 shares of the company’s stock valued at $56,000 after acquiring an additional 91 shares in the last quarter. Finally, Kestra Advisory Services LLC raised its holdings in shares of RH by 24.9% in the third quarter. Kestra Advisory Services LLC now owns 3,366 shares of the company’s stock valued at $410,000 after acquiring an additional 672 shares in the last quarter. 90.17% of the stock is owned by hedge funds and other institutional investors.

About RH

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality interiors. Its offerings include furniture, lighting, textiles, rugs, bath and plumbing fixtures, outdoor furnishings, décor, and related design products.

The company markets its products through a multichannel platform that includes RH Galleries, smaller design galleries, outlet locations, catalogs, and its digital channels. RH also operates businesses such as Waterworks, which specializes in luxury kitchen and bath products, and provides interior-design services through its design professionals.