RH (NYSE:RH) Trading Down 4.2% on Disappointing Earnings

RH (NYSE:RH)’s stock price traded down 4.2% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $381.70 and last traded at $382.16. 135,663 shares were traded during trading, a decline of 81% from the average session volume of 707,411 shares. The stock had previously closed at $398.95.

The company reported $2.48 EPS for the quarter, missing the consensus estimate of $2.67 by ($0.19). RH had a negative return on equity of 11.29% and a net margin of 1.13%. The company had revenue of $811.73 million for the quarter, compared to analyst estimates of $812.19 million. During the same period in the previous year, the firm earned ($0.42) earnings per share. The company’s revenue for the quarter was up 8.1% compared to the same quarter last year.

Analyst Ratings Changes

Several analysts have commented on RH shares. BNP Paribas reaffirmed an “underperform” rating and set a $253.00 price objective on shares of RH in a research note on Wednesday, November 13th. Guggenheim lifted their target price on shares of RH from $425.00 to $550.00 and gave the company a “buy” rating in a report on Friday. TD Cowen lifted their price objective on RH from $325.00 to $350.00 and gave the company a “buy” rating in a report on Friday, September 13th. Bank of America increased their target price on RH from $310.00 to $359.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. Finally, Citigroup upped their price objective on RH from $340.00 to $355.00 and gave the stock a “buy” rating in a report on Friday, September 13th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $377.07.

Insider Activity

In related news, insider Stefan Duban sold 4,285 shares of RH stock in a transaction dated Thursday, September 19th. The stock was sold at an average price of $346.37, for a total value of $1,484,195.45. Following the completion of the transaction, the insider now directly owns 78 shares in the company, valued at approximately $27,016.86. This trade represents a 98.21 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Mark S. Demilio sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 18th. The shares were sold at an average price of $340.30, for a total value of $680,600.00. Following the completion of the sale, the director now owns 10,914 shares of the company’s stock, valued at $3,714,034.20. This trade represents a 15.49 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 8,285 shares of company stock worth $2,871,935 over the last 90 days. Company insiders own 28.10% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Anomaly Capital Management LP grew its stake in shares of RH by 503.6% in the second quarter. Anomaly Capital Management LP now owns 349,227 shares of the company’s stock worth $85,365,000 after purchasing an additional 291,368 shares in the last quarter. Two Sigma Advisers LP grew its position in RH by 141.5% in the 3rd quarter. Two Sigma Advisers LP now owns 159,600 shares of the company’s stock valued at $53,375,000 after buying an additional 93,500 shares in the last quarter. Marshall Wace LLP raised its position in shares of RH by 58.6% during the 2nd quarter. Marshall Wace LLP now owns 174,324 shares of the company’s stock worth $42,612,000 after buying an additional 64,423 shares in the last quarter. Victory Capital Management Inc. lifted its stake in shares of RH by 77.0% in the 2nd quarter. Victory Capital Management Inc. now owns 128,711 shares of the company’s stock worth $31,462,000 after acquiring an additional 55,999 shares during the period. Finally, Allspring Global Investments Holdings LLC lifted its stake in shares of RH by 24.2% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 227,247 shares of the company’s stock worth $55,548,000 after acquiring an additional 44,278 shares during the period. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Price Performance

The firm has a market capitalization of $8.22 billion, a P/E ratio of 262.31, a PEG ratio of 2.44 and a beta of 2.44. The firm’s fifty day moving average price is $345.55 and its 200-day moving average price is $296.23.

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.