StockNews.com Downgrades RH (NYSE:RH) to Sell

RH (NYSE:RH) was downgraded by investment analysts at StockNews.com from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

A number of other research firms have also recently weighed in on RH. BNP Paribas restated an “underperform” rating and issued a $253.00 price target on shares of RH in a report on Wednesday, November 13th. Guggenheim upped their target price on RH from $425.00 to $550.00 and gave the company a “buy” rating in a report on Friday, December 13th. Wells Fargo & Company lifted their price target on RH from $425.00 to $500.00 and gave the stock an “overweight” rating in a research note on Friday, December 13th. Wedbush reissued an “outperform” rating and issued a $500.00 price objective (up from $430.00) on shares of RH in a research note on Friday, December 13th. Finally, Telsey Advisory Group upgraded shares of RH from a “market perform” rating to an “outperform” rating and lifted their target price for the stock from $485.00 to $500.00 in a research report on Thursday. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $402.40.

RH Stock Performance

Shares of NYSE RH opened at $398.26 on Friday. RH has a one year low of $212.43 and a one year high of $457.26. The firm has a market capitalization of $7.41 billion, a P/E ratio of 114.44, a PEG ratio of 2.73 and a beta of 2.44. The company’s fifty day moving average is $355.73 and its two-hundred day moving average is $302.38.

RH (NYSE:RH) last announced its quarterly earnings data on Thursday, December 12th. The company reported $2.48 EPS for the quarter, missing the consensus estimate of $2.67 by ($0.19). RH had a net margin of 2.25% and a negative return on equity of 32.76%. The company had revenue of $811.73 million during the quarter, compared to analyst estimates of $812.19 million. During the same quarter last year, the business earned ($0.42) EPS. The firm’s revenue for the quarter was up 8.1% on a year-over-year basis. On average, sell-side analysts forecast that RH will post 5.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Edward T. Lee sold 2,000 shares of the company’s stock in a transaction dated Friday, October 18th. The shares were sold at an average price of $353.57, for a total transaction of $707,140.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Keith Belling sold 500 shares of the firm’s stock in a transaction that occurred on Tuesday, December 17th. The stock was sold at an average price of $415.00, for a total transaction of $207,500.00. Following the completion of the sale, the director now directly owns 5,470 shares in the company, valued at $2,270,050. This represents a 8.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 28.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RH

Several institutional investors and hedge funds have recently bought and sold shares of RH. Blue Trust Inc. grew its stake in shares of RH by 308.3% during the 3rd quarter. Blue Trust Inc. now owns 98 shares of the company’s stock valued at $33,000 after buying an additional 74 shares during the period. Ridgewood Investments LLC acquired a new position in RH in the second quarter valued at $62,000. Centaurus Financial Inc. purchased a new stake in RH during the third quarter valued at about $100,000. Ameliora Wealth Management Ltd. acquired a new stake in RH during the third quarter worth about $110,000. Finally, Quarry LP purchased a new position in shares of RH in the 3rd quarter worth about $141,000. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.