RH (NYSE:RH) Stock Has Consensus Price Target of $164.86

RH (NYSE:RH) has received an average recommendation of “Hold” from the nineteen ratings firms that are currently covering the firm, Marketbeat.com reports. Three research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and seven have given a buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $164.86.

A number of brokerages have recently weighed in on RH. The Goldman Sachs Group upgraded RH from a “sell” rating to a “neutral” rating and lifted their price target for the company from $86.00 to $155.00 in a report on Wednesday, July 8th. Wells Fargo & Company reduced their target price on RH from $225.00 to $175.00 and set an “overweight” rating for the company in a report on Friday, September 11th. Guggenheim restated a “buy” rating and set a $200.00 target price on shares of RH in a research note on Friday, September 11th. Morgan Stanley cut their price target on RH from $240.00 to $210.00 and set an “overweight” rating for the company in a report on Friday, September 11th. Finally, JPMorgan Chase & Co. reduced their price objective on RH from $212.00 to $190.00 and set an “overweight” rating for the company in a research report on Friday, September 11th.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH’s latest reported quarter exceeded expectations, with earnings per share of $2.70 versus the $0.38 consensus estimate. Revenue also reached $922.2 million, slightly above forecasts and up 2.6% year over year.
• Neutral Sentiment: Analysts expect full-year earnings of approximately $5.23 per share. Investors may focus on whether RH can sustain earnings growth amid a luxury-home-furnishings market that remains sensitive to consumer spending and housing conditions.
• Negative Sentiment: Despite the earnings beat, quarterly EPS was below the prior-year result of $2.93, while RH’s shares remain below their 50-day and 200-day moving averages. The company also carries substantial leverage, reflected in a debt-to-equity ratio of 26.57, which can amplify downside risk.

RH Stock Performance

NYSE:RH traded down $5.34 during trading hours on Friday, reaching $112.53. 793,870 shares of the stock were exchanged, compared to its average volume of 819,589. The stock has a market capitalization of $2.13 billion, a P/E ratio of 20.02, a P/E/G ratio of 2.25 and a beta of 1.91. The firm has a 50 day simple moving average of $138.50 and a 200-day simple moving average of $145.54. The company has a quick ratio of 0.37, a current ratio of 1.12 and a debt-to-equity ratio of 26.57. RH has a 52 week low of $106.30 and a 52 week high of $239.40.

RH (NYSE:RH) last posted its earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, topping the consensus estimate of $0.38 by $2.32. The firm had revenue of $922.15 million during the quarter, compared to analysts’ expectations of $915.09 million. RH had a net margin of 3.23% and a return on equity of 132.79%. RH’s quarterly revenue was up 2.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.93 EPS. As a group, sell-side analysts forecast that RH will post 5.23 earnings per share for the current fiscal year.

Insider Activity at RH

In other news, Director Mark Demilio sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $132.00, for a total transaction of $132,000.00. Following the completion of the sale, the director owned 25,680 shares of the company’s stock, valued at approximately $3,389,760. This trade represents a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 26.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On RH

A number of hedge funds have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. bought a new position in RH in the 1st quarter worth approximately $42,000. Himension Capital Singapore PTE. LTD. bought a new stake in shares of RH in the 1st quarter valued at about $45,000. Allworth Financial LP boosted its position in shares of RH by 80.4% during the second quarter. Allworth Financial LP now owns 516 shares of the company’s stock worth $85,000 after purchasing an additional 230 shares in the last quarter. TD Waterhouse Canada Inc. increased its holdings in shares of RH by 33.3% in the second quarter. TD Waterhouse Canada Inc. now owns 536 shares of the company’s stock worth $88,000 after acquiring an additional 134 shares in the last quarter. Finally, Hilton Head Capital Partners LLC increased its stake in RH by 17.0% during the 1st quarter. Hilton Head Capital Partners LLC now owns 702 shares of the company’s stock worth $98,000 after purchasing an additional 102 shares in the last quarter. Institutional investors own 90.17% of the company’s stock.

RH Company Profile

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality environments. Its offerings include furniture, lighting, textiles, rugs, bath and kitchen fixtures, outdoor furnishings, décor and related design products.

The company markets its products through a multichannel platform that includes large-format RH Galleries, outlet locations, source books, websites and trade services for professional designers.