RH (NYSE:RH) Shares Gap Up on Strong Earnings

RH (NYSE:RH) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $176.87, but opened at $211.00. RH shares last traded at $198.77, with a volume of 2,607,583 shares traded.

The company reported $0.13 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.20. The firm had revenue of $813.95 million for the quarter, compared to the consensus estimate of $817.66 million. RH had a negative return on equity of 35.72% and a net margin of 2.25%. The company’s quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.40) earnings per share.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Barclays reduced their price target on RH from $515.00 to $436.00 and set an “overweight” rating on the stock in a report on Thursday, April 3rd. The Goldman Sachs Group decreased their target price on RH from $276.00 to $194.00 and set a “neutral” rating for the company in a report on Monday, May 5th. Loop Capital dropped their price target on RH from $450.00 to $190.00 and set a “hold” rating for the company in a research note on Friday, April 4th. JPMorgan Chase & Co. cut their price target on shares of RH from $510.00 to $250.00 and set an “overweight” rating on the stock in a report on Monday, April 14th. Finally, Wall Street Zen raised shares of RH from a “sell” rating to a “hold” rating in a research report on Thursday, May 22nd. Two research analysts have rated the stock with a sell rating, six have given a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat.com, RH presently has a consensus rating of “Hold” and an average target price of $270.00.

Institutional Trading of RH

A number of hedge funds and other institutional investors have recently modified their holdings of RH. LPL Financial LLC lifted its position in RH by 61.3% during the 4th quarter. LPL Financial LLC now owns 9,141 shares of the company’s stock valued at $3,598,000 after acquiring an additional 3,473 shares during the period. Deutsche Bank AG increased its stake in shares of RH by 607.9% during the fourth quarter. Deutsche Bank AG now owns 9,464 shares of the company’s stock valued at $3,725,000 after purchasing an additional 8,127 shares in the last quarter. Sterling Capital Management LLC lifted its holdings in shares of RH by 49.7% during the fourth quarter. Sterling Capital Management LLC now owns 762 shares of the company’s stock valued at $300,000 after purchasing an additional 253 shares during the last quarter. Victory Capital Management Inc. boosted its position in shares of RH by 0.9% in the 4th quarter. Victory Capital Management Inc. now owns 50,684 shares of the company’s stock worth $19,949,000 after purchasing an additional 445 shares in the last quarter. Finally, L.M. Kohn & Company bought a new stake in shares of RH in the 4th quarter worth approximately $289,000. 90.17% of the stock is owned by hedge funds and other institutional investors.

RH Trading Up 12.8%

The company has a market cap of $3.74 billion, a PE ratio of 57.00, a P/E/G ratio of 2.65 and a beta of 2.19. The firm has a 50 day moving average of $183.54 and a two-hundred day moving average of $295.15.

RH Company Profile

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.