RH (NYSE:RH) Trading 21% Higher – Still a Buy?

RH (NYSE:RH) shares traded up 21% on Wednesday . The stock traded as high as $168.69 and last traded at $180.76. 2,566,071 shares were traded during trading, an increase of 191% from the average session volume of 880,477 shares. The stock had previously closed at $149.36.

Analyst Ratings Changes

RH has been the subject of a number of research analyst reports. Guggenheim dropped their target price on shares of RH from $500.00 to $300.00 and set a “buy” rating for the company in a report on Thursday, April 3rd. Robert W. Baird lowered their target price on RH from $400.00 to $215.00 and set a “neutral” rating on the stock in a report on Thursday, April 3rd. Telsey Advisory Group decreased their price objective on shares of RH from $420.00 to $280.00 and set an “outperform” rating on the stock in a research report on Thursday, April 3rd. UBS Group reduced their price target on shares of RH from $250.00 to $235.00 and set a “neutral” rating on the stock in a report on Thursday, April 3rd. Finally, Barclays lowered their target price on RH from $515.00 to $436.00 and set an “overweight” rating on the stock in a report on Thursday, April 3rd. Three investment analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $283.94.

RH Stock Performance

The stock has a fifty day moving average price of $296.11 and a 200-day moving average price of $344.37. The firm has a market cap of $3.56 billion, a PE ratio of 54.67, a PEG ratio of 2.65 and a beta of 2.44.

RH (NYSE:RH) last released its quarterly earnings data on Wednesday, April 2nd. The company reported $1.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.91 by ($0.33). RH had a negative return on equity of 35.72% and a net margin of 2.25%. The business had revenue of $812.41 million during the quarter, compared to analyst estimates of $828.21 million. During the same period in the previous year, the company earned $0.72 EPS. RH’s revenue was up 10.0% on a year-over-year basis. As a group, equities analysts predict that RH will post 4.39 earnings per share for the current fiscal year.

Insider Activity at RH

In other RH news, insider Eri Chaya sold 25,000 shares of the firm’s stock in a transaction on Tuesday, January 14th. The shares were sold at an average price of $426.41, for a total transaction of $10,660,250.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Christina Hargarten sold 5,280 shares of the company’s stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $447.20, for a total transaction of $2,361,216.00. Following the completion of the sale, the chief accounting officer now owns 484 shares in the company, valued at approximately $216,444.80. This trade represents a 91.60 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 55,880 shares of company stock valued at $24,550,754. Insiders own 28.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in RH. UMB Bank n.a. lifted its stake in RH by 125.8% during the fourth quarter. UMB Bank n.a. now owns 70 shares of the company’s stock worth $28,000 after purchasing an additional 39 shares during the last quarter. Versant Capital Management Inc lifted its position in shares of RH by 7,000.0% in the 4th quarter. Versant Capital Management Inc now owns 71 shares of the company’s stock worth $28,000 after buying an additional 70 shares during the last quarter. GAMMA Investing LLC boosted its holdings in shares of RH by 533.3% in the 4th quarter. GAMMA Investing LLC now owns 76 shares of the company’s stock valued at $30,000 after buying an additional 64 shares during the period. Sunbelt Securities Inc. grew its position in shares of RH by 690.0% during the 4th quarter. Sunbelt Securities Inc. now owns 79 shares of the company’s stock valued at $31,000 after buying an additional 69 shares during the last quarter. Finally, Rakuten Securities Inc. raised its stake in RH by 180.0% during the fourth quarter. Rakuten Securities Inc. now owns 112 shares of the company’s stock worth $44,000 after acquiring an additional 72 shares during the period. 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.