Restoration Hardware Holdings Inc. (NYSE:RH) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “RH’s shares widely outperformed the industry to which it belongs, year to date. The company’s efforts to redesign its supply chain network, rationalize product offerings and the Waterworks acquisition are expected to boost growth. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book, the rollout of Design Ateliers across the company’s retail Galleries are expected to contribute to growth in 2017 and beyond. Though RH’s plans to rationalize product offering, reduce inventories and boost free cash flow will drive revenues and cash flow, it is expected to dent earnings in 2017. Also, higher dependence on imports makes it vulnerable to uncertain macro conditions.”

A number of other research analysts have also recently issued reports on RH. UBS AG reaffirmed a “neutral” rating and issued a $45.00 target price on shares of Restoration Hardware Holdings in a report on Saturday, June 3rd. Oppenheimer Holdings, Inc. reaffirmed a “hold” rating on shares of Restoration Hardware Holdings in a report on Saturday, May 6th. BidaskClub cut shares of Restoration Hardware Holdings from a “hold” rating to a “sell” rating in a report on Wednesday, August 9th. Barclays PLC set a $65.00 target price on shares of Restoration Hardware Holdings and gave the company a “hold” rating in a report on Sunday, July 16th. Finally, Buckingham Research raised shares of Restoration Hardware Holdings from an “underperform” rating to a “neutral” rating in a research note on Monday, May 15th. Three equities research analysts have rated the stock with a sell rating, fifteen have given a hold rating and three have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $54.07.

Restoration Hardware Holdings (RH) traded up 0.10% during midday trading on Wednesday, reaching $52.23. The company had a trading volume of 423,400 shares. The stock has a market capitalization of $1.73 billion, a PE ratio of 136.73 and a beta of 1.47. The firm’s 50 day moving average is $65.09 and its 200 day moving average is $48.88. Restoration Hardware Holdings has a 1-year low of $24.41 and a 1-year high of $79.91.

Restoration Hardware Holdings (NYSE:RH) last issued its earnings results on Thursday, June 1st. The company reported $0.05 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.05. Restoration Hardware Holdings had a net margin of 0.66% and a return on equity of 6.42%. The company had revenue of $562.10 million during the quarter, compared to analysts’ expectations of $560.30 million. During the same period last year, the company posted ($0.05) earnings per share. The firm’s quarterly revenue was up 23.4% compared to the same quarter last year. On average, equities analysts anticipate that Restoration Hardware Holdings will post $2.14 EPS for the current fiscal year.

Restoration Hardware Holdings announced that its Board of Directors has initiated a share buyback program on Thursday, May 4th that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 37.6% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

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Hedge funds have recently made changes to their positions in the company. Flinton Capital Management LLC raised its stake in shares of Restoration Hardware Holdings by 41.4% in the second quarter. Flinton Capital Management LLC now owns 1,584 shares of the company’s stock worth $102,000 after buying an additional 464 shares during the period. Public Employees Retirement System of Ohio raised its position in shares of Restoration Hardware Holdings by 12.6% in the first quarter. Public Employees Retirement System of Ohio now owns 2,286 shares of the company’s stock worth $106,000 after buying an additional 255 shares during the period. Riverhead Capital Management LLC raised its position in shares of Restoration Hardware Holdings by 58.2% in the second quarter. Riverhead Capital Management LLC now owns 1,898 shares of the company’s stock worth $122,000 after buying an additional 698 shares during the period. Sei Investments Co. raised its position in shares of Restoration Hardware Holdings by 36.7% in the first quarter. Sei Investments Co. now owns 2,720 shares of the company’s stock worth $126,000 after buying an additional 730 shares during the period. Finally, Ameritas Investment Partners Inc. bought a new position in shares of Restoration Hardware Holdings during the first quarter worth $155,000.

About Restoration Hardware Holdings

RH, formerly Restoration Hardware Holdings, Inc, is a retailer in the home furnishings marketplace. As of January 28, 2017, the Company had two segments: RH Segment and Waterworks. It offers merchandise assortments across a range of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings.

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Analyst Recommendations for Restoration Hardware Holdings (NYSE:RH)

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