RH (NYSE:RH) Shares Up 5.9% – Should You Buy?

RH (NYSE:RH) rose 5.9% during mid-day trading on Tuesday . The company traded as high as $171.58 and last traded at $173.2880. Approximately 361,078 shares were traded during trading, a decline of 71% from the average daily volume of 1,230,857 shares. The stock had previously closed at $163.67.

Analyst Ratings Changes

RH has been the topic of several research reports. Wells Fargo & Company raised their target price on RH from $275.00 to $295.00 and gave the company an “overweight” rating in a research report on Monday, September 8th. Telsey Advisory Group decreased their target price on RH from $220.00 to $185.00 and set a “market perform” rating for the company in a report on Friday. The Goldman Sachs Group reduced their price target on shares of RH from $195.00 to $144.00 and set a “sell” rating for the company in a research report on Monday. Robert W. Baird reduced their price objective on RH from $235.00 to $180.00 and set a “neutral” rating for the company in a research note on Friday. Finally, TD Cowen reduced their price objective on RH from $265.00 to $200.00 and set a “buy” rating for the company in a report on Friday. Nine investment 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, the company has a consensus rating of “Hold” and an average target price of $230.25.

RH Trading Up 7.0%

The company has a market capitalization of $3.28 billion, a PE ratio of 31.49, a PEG ratio of 0.77 and a beta of 2.09. The company has a current ratio of 1.19, a quick ratio of 0.26 and a debt-to-equity ratio of 944.39. The business’s 50-day simple moving average is $166.71 and its two-hundred day simple moving average is $193.97.

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). RH had a negative return on equity of 161.72% and a net margin of 3.22%.The firm had revenue of $883.81 million during the quarter, compared to analyst estimates of $883.65 million. During the same quarter last year, the business posted $2.48 earnings per share. The firm’s revenue for the quarter was up 8.9% on a year-over-year basis. On average, analysts predict that RH will post 4.39 earnings per share for the current year.

Insider Activity

In related news, Director Mark S. Demilio sold 2,000 shares of the firm’s 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 $5,812,576.08. This trade represents a 7.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 27.00% of the company’s stock.

Institutional Investors Weigh In On RH

A number of hedge funds have recently added to or reduced their stakes in RH. IFP Advisors Inc bought a new stake in shares of RH during the third quarter valued at approximately $304,000. JPMorgan Chase & Co. raised its stake in RH by 388.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 265,271 shares of the company’s stock valued at $53,893,000 after acquiring an additional 210,991 shares in the last quarter. Advisory Services Network LLC acquired a new position in RH during the 3rd quarter worth $31,000. Keystone Financial Group grew its stake in shares of RH by 26.4% in the third quarter. Keystone Financial Group now owns 9,810 shares of the company’s stock worth $1,993,000 after purchasing an additional 2,046 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. grew its stake in shares of RH by 13.2% in the third quarter. Jacobs Levy Equity Management Inc. now owns 12,982 shares of the company’s stock worth $2,637,000 after purchasing an additional 1,509 shares in the last quarter. 90.17% of the stock is currently 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.