RealReal (NASDAQ:REAL) Stock Price Down 7.7% – Should You Sell?

The RealReal, Inc. (NASDAQ:REAL) fell 7.7% during trading on Wednesday . The stock traded as low as $10.04 and last traded at $10.09. 1,604,429 shares were traded during trading, a decline of 53% from the average session volume of 3,385,347 shares. The stock had previously closed at $10.93.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on REAL shares. UBS Group reaffirmed a “buy” rating on shares of RealReal in a report on Wednesday, June 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RealReal in a report on Tuesday, April 21st. Roth Capital set a $17.00 price objective on RealReal in a research note on Friday, May 8th. BTIG Research reissued a “buy” rating and issued a $17.00 price objective on shares of RealReal in a report on Wednesday, June 3rd. Finally, Wall Street Zen downgraded RealReal from a “buy” rating to a “hold” rating in a research note on Saturday, April 18th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $17.25.

RealReal Price Performance

The business’s fifty day simple moving average is $10.63 and its two-hundred day simple moving average is $11.90. The company has a market cap of $1.28 billion, a PE ratio of -10.44 and a beta of 2.66.

RealReal (NASDAQ:REAL) last posted its earnings results on Thursday, May 7th. The company reported ($0.01) EPS for the quarter, meeting analysts’ consensus estimates of ($0.01). The business had revenue of $189.72 million for the quarter, compared to analyst estimates of $187.82 million. RealReal’s revenue was up 18.5% on a year-over-year basis. During the same quarter last year, the business earned ($0.08) earnings per share. As a group, analysts predict that The RealReal, Inc. will post -0.14 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Gopal Ajay Madan sold 35,023 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $9.25, for a total transaction of $323,962.75. Following the transaction, the chief financial officer owned 1,145,278 shares in the company, valued at $10,593,821.50. This trade represents a 2.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Steve Ming Lo sold 12,077 shares of RealReal stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $9.25, for a total transaction of $111,712.25. Following the completion of the sale, the chief accounting officer directly owned 189,469 shares in the company, valued at $1,752,588.25. This represents a 5.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 166,830 shares of company stock valued at $1,543,178. 2.66% of the stock is owned by insiders.

Hedge Funds Weigh In On RealReal

A number of large investors have recently added to or reduced their stakes in the stock. KBC Group NV acquired a new stake in shares of RealReal in the first quarter valued at about $26,000. Quarry LP acquired a new position in shares of RealReal during the 3rd quarter worth about $28,000. Larson Financial Group LLC purchased a new position in RealReal in the 3rd quarter valued at about $31,000. Gables Capital Management Inc. acquired a new stake in RealReal in the 1st quarter worth about $35,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in RealReal by 25.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 6,253 shares of the company’s stock worth $57,000 after buying an additional 1,253 shares during the last quarter. 64.73% of the stock is currently owned by institutional investors and hedge funds.

About RealReal

The RealReal, Inc (NASDAQ: REAL) operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal’s business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.