RH (NYSE:RH) Shares Gap Up – Should You Buy?
by Jessica Moore · The Cerbat GemRH (NYSE:RH – Get Free Report)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $323.68, but opened at $339.45. RH shares last traded at $338.42, with a volume of 112,731 shares traded.
Analyst Ratings Changes
Several equities analysts recently commented on RH shares. Loop Capital boosted their price target on RH from $230.00 to $320.00 and gave the stock a “hold” rating in a research report on Monday, September 16th. Morgan Stanley boosted their price target on RH from $300.00 to $310.00 and gave the company an “equal weight” rating in a report on Friday, September 13th. Citigroup upped their target price on RH from $340.00 to $355.00 and gave the company a “buy” rating in a report on Friday, September 13th. JPMorgan Chase & Co. dropped their price target on shares of RH from $345.00 to $338.00 and set an “overweight” rating on the stock in a research note on Monday, September 16th. Finally, Wedbush raised shares of RH from a “neutral” rating to an “outperform” rating and raised their target price for the company from $310.00 to $430.00 in a research note on Monday, October 21st. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $326.14.
Read Our Latest Research Report on RH
RH Price Performance
The company has a market capitalization of $6.25 billion, a price-to-earnings ratio of 202.47, a price-to-earnings-growth ratio of 1.79 and a beta of 2.43. The stock has a 50 day moving average price of $328.15 and a two-hundred day moving average price of $284.57.
RH (NYSE:RH – Get Free Report) last posted its quarterly earnings results on Thursday, September 12th. The company reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.56 by $0.13. RH had a negative return on equity of 11.29% and a net margin of 1.13%. The business had revenue of $829.66 million for the quarter, compared to analysts’ expectations of $824.52 million. During the same quarter last year, the business earned $3.93 earnings per share. The firm’s quarterly revenue was up 3.6% compared to the same quarter last year. Sell-side analysts forecast that RH will post 5.65 EPS for the current fiscal year.
Insider Activity
In other news, insider Stefan Duban sold 4,285 shares of the business’s stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $346.37, for a total value of $1,484,195.45. Following the completion of the sale, the insider now owns 78 shares of the company’s stock, valued at approximately $27,016.86. The trade was a 98.21 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Edward T. Lee sold 2,000 shares of the business’s stock in a transaction dated Friday, October 18th. The shares were sold at an average price of $353.57, for a total value of $707,140.00. The disclosure for this sale can be found here. Insiders sold 8,285 shares of company stock worth $2,871,935 over the last quarter. 28.10% of the stock is currently owned by company insiders.
Institutional Trading of RH
A number of hedge funds have recently added to or reduced their stakes in the stock. Blue Trust Inc. raised its position in RH by 308.3% in the third quarter. Blue Trust Inc. now owns 98 shares of the company’s stock valued at $33,000 after purchasing an additional 74 shares during the last quarter. Ridgewood Investments LLC bought a new stake in RH during the 2nd quarter worth approximately $62,000. Centaurus Financial Inc. acquired a new position in RH in the 3rd quarter valued at approximately $100,000. Ameliora Wealth Management Ltd. bought a new position in shares of RH during the third quarter valued at $110,000. Finally, Quarry LP bought a new stake in shares of RH in the third quarter worth $141,000. Institutional investors and hedge funds own 90.17% of the company’s stock.
About RH
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.