RH (NYSE:RH) Shares Gap Up – Time to Buy?

RH (NYSE:RH)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $153.31, but opened at $161.75. RH shares last traded at $170.51, with a volume of 1,252,988 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. TD Cowen cut their price target on shares of RH from $265.00 to $200.00 and set a “buy” rating for the company in a report on Friday. Guggenheim reaffirmed a “buy” rating and issued a $300.00 target price on shares of RH in a report on Friday, September 12th. Bank of America decreased their target price on RH from $200.00 to $170.00 and set an “underperform” rating on the stock in a research report on Friday. Weiss Ratings downgraded RH from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday. Finally, UBS Group reaffirmed a “neutral” rating on shares of RH in a research note on Friday. Nine analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, RH currently has an average rating of “Hold” and an average price target of $238.81.

RH Price Performance

The stock has a 50-day moving average price of $167.44 and a 200-day moving average price of $194.04. The firm has a market capitalization of $3.04 billion, a PE ratio of 29.23, a price-to-earnings-growth ratio of 0.77 and a beta of 2.09.

RH (NYSE:RH) last posted its quarterly earnings results on Thursday, December 11th. The company reported $1.71 EPS for the quarter, missing analysts’ consensus estimates of $2.13 by ($0.42). The firm had revenue of $883.81 million during the quarter, compared to analyst estimates of $883.65 million. RH had a negative return on equity of 120.00% and a net margin of 3.22%.The firm’s revenue for the quarter was up 8.9% on a year-over-year basis. During the same quarter last year, the business posted $2.48 earnings per share. As a group, equities research analysts predict that RH will post 4.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Mark S. Demilio sold 2,000 shares of RH stock in a transaction on Friday, September 19th. The stock was sold at an average price of $236.13, for a total transaction of $472,260.00. Following the transaction, the director directly owned 24,616 shares in the company, valued at approximately $5,812,576.08. This trade represents a 7.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 27.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On RH

Several large investors have recently modified their holdings of RH. Vanguard Group Inc. raised its position in shares of RH by 0.6% during the first quarter. Vanguard Group Inc. now owns 1,409,962 shares of the company’s stock worth $330,509,000 after purchasing an additional 7,952 shares during the period. Charles Schwab Investment Management Inc. increased its stake in RH by 1.7% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 190,843 shares of the company’s stock worth $44,736,000 after purchasing an additional 3,144 shares in the last quarter. Deutsche Bank AG raised its holdings in RH by 2.2% during the 1st quarter. Deutsche Bank AG now owns 9,674 shares of the company’s stock worth $2,268,000 after buying an additional 210 shares during the period. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in RH during the first quarter valued at about $1,532,000. Finally, Invesco Ltd. boosted its holdings in shares of RH by 38.2% in the first quarter. Invesco Ltd. now owns 248,449 shares of the company’s stock worth $58,239,000 after buying an additional 68,629 shares during the period. 90.17% of the stock is owned by institutional investors.

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.