RH (NYSE:RH) Cut to “Sell” at Wall Street Zen

RH (NYSE:RH) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday.

Several other research firms also recently commented on RH. Morgan Stanley reduced their price target on shares of RH from $275.00 to $240.00 and set an “overweight” rating for the company in a research report on Wednesday. Zacks Research raised shares of RH from a “strong sell” rating to a “hold” rating in a research report on Friday, February 13th. JPMorgan Chase & Co. reduced their target price on shares of RH from $275.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, December 19th. Zelman & Associates reiterated an “outperform” rating on shares of RH in a research note on Thursday, January 29th. Finally, KeyCorp reissued a “sector weight” rating on shares of RH in a report on Friday, December 12th. Seven investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, RH has an average rating of “Hold” and a consensus price target of $180.20.

RH Trading Up 0.0%

RH opened at $113.49 on Friday. The firm has a market cap of $2.14 billion, a price-to-earnings ratio of 17.99, a price-to-earnings-growth ratio of 1.22 and a beta of 2.10. RH has a 52 week low of $106.30 and a 52 week high of $257.00. The business’s 50 day moving average is $167.84 and its two-hundred day moving average is $178.73. The company has a quick ratio of 0.26, a current ratio of 1.19 and a debt-to-equity ratio of 51.28.

RH (NYSE:RH) last issued its quarterly earnings data on Tuesday, March 31st. The company reported $1.53 earnings per share for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). The firm had revenue of $842.62 million during the quarter, compared to analysts’ expectations of $873.48 million. RH had a net margin of 3.63% and a negative return on equity of 567.82%. RH’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.58 EPS. On average, research analysts predict that RH will post 4.39 EPS for the current year.

Insider Buying and Selling at RH

In other RH news, Director Mark S. Demilio sold 2,254 shares of the business’s stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total value of $495,880.00. Following the transaction, the director directly owned 19,962 shares of the company’s stock, valued at approximately $4,391,640. The trade was a 10.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Eri Chaya sold 11,000 shares of the company’s stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total transaction of $1,517,120.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 29,254 shares of company stock worth $4,306,520 over the last three months. 27.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. United Services Automobile Association purchased a new stake in RH in the 1st quarter valued at approximately $231,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in RH by 6.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,622 shares of the company’s stock worth $9,053,000 after purchasing an additional 2,244 shares during the period. Legal & General Group Plc raised its stake in shares of RH by 3.0% during the 2nd quarter. Legal & General Group Plc now owns 24,517 shares of the company’s stock worth $4,634,000 after buying an additional 712 shares in the last quarter. Prudential Financial Inc. lifted its holdings in shares of RH by 24.4% in the 2nd quarter. Prudential Financial Inc. now owns 1,593 shares of the company’s stock valued at $301,000 after buying an additional 312 shares during the period. Finally, Steward Partners Investment Advisory LLC lifted its holdings in shares of RH by 12.0% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 605 shares of the company’s stock valued at $114,000 after buying an additional 65 shares during the period. 90.17% of the stock is owned by hedge funds and other institutional investors.

More RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some large brokers remain constructive or keep overweight/buy ratings despite lower targets, which supports short‑term buying interest and stabilizes the stock. Read More.
• Positive Sentiment: Value/“buy‑the‑dip” commentary argues the pullback may present a long‑term entry given RH’s brand and growth plan, attracting opportunistic investors. Read More.
• Neutral Sentiment: Citigroup cut its price target from $183 to $150 and set a neutral rating — reduces upside expectations but is not a sell call, which can temper further liquidation. Read More.
• Neutral Sentiment: RH reiterated its long‑term expansion strategy (global gallery openings, higher pre‑opening costs). Management frames near‑term margin pressure as deliberate investment for growth — explains elevated spending but increases execution risk. Read More.
• Negative Sentiment: Q4 miss drove the sell‑off: adjusted EPS $1.53 vs. ~$2.21 consensus and revenue $842.6M vs. ~$873.5M; management cited tariff/resourcing and weather headwinds. That earnings miss triggered analyst cuts and selling pressure. Read More.
• Negative Sentiment: Cautious FY2026 outlook: management guided modest revenue growth and lower adjusted EBITDA margins as it ramps global expansion and funds pre‑openings — implies near‑term margin compression and slower cash generation. Read More.
• Negative Sentiment: Analyst downgrades and lower targets from multiple houses (BNP Paribas Exane, Wells Fargo and others) amplify downside pressure and reduce conviction among institutional holders. Read More.
• Negative Sentiment: Insider selling: director/insider Eri Chaya sold multiple blocks (11,000 shares on Mar 31 plus earlier sales), which investors often view as a negative signal; a shareholder law firm has also announced an investigation that can add short‑term uncertainty. Read More. Read More.
• Negative Sentiment: Macro/industry headwinds: RH’s CEO warned of a worsening housing market and declining mortgage applications, which could weigh on demand for high‑end home furnishings. Read More.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.