RH (NYSE:RH) Shares Down 8.4% – Should You Sell?

Shares of RH (NYSE:RH) traded down 8.4% during trading on Thursday . The stock traded as low as $155.54 and last traded at $155.76. Approximately 458,287 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 1,048,995 shares. The stock had previously closed at $169.97.

RH News Roundup

Here are the key news stories impacting RH this week:

• Neutral Sentiment: Analysts’ consensus rating remains “Hold,” suggesting investors may want clearer evidence of a sustained recovery before assigning RH a stronger valuation. RH Receives Consensus Rating of Hold from Analysts
• Positive Sentiment: RH exceeded quarterly earnings expectations, reporting a loss of $1.97 per share versus the $2.12 consensus estimate, while revenue of $800.3 million also topped forecasts.
• Negative Sentiment: The company’s results remained challenging: revenue declined year over year, and RH swung from a $0.13-per-share profit in the comparable quarter to a quarterly loss.

Analyst Ratings Changes

RH has been the subject of a number of recent research reports. KeyCorp reissued a “sector weight” rating on shares of RH in a research note on Friday, June 12th. Weiss Ratings restated a “sell (d)” rating on shares of RH in a research note on Friday, July 24th. JPMorgan Chase & Co. cut their target price on RH from $225.00 to $212.00 and set an “overweight” rating on the stock in a research note on Monday, August 17th. UBS Group decreased their price target on shares of RH from $160.00 to $155.00 and set a “neutral” rating for the company in a research report on Tuesday, June 9th. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $240.00 price objective on shares of RH in a research report on Monday, May 11th. Seven research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $173.36.

RH Trading Down 2.1%

The company has a current ratio of 1.13, a quick ratio of 0.32 and a debt-to-equity ratio of 54.96. The firm has a market cap of $2.89 billion, a price-to-earnings ratio of 29.55, a PEG ratio of 3.72 and a beta of 1.87. The company has a fifty day moving average price of $169.50 and a 200-day moving average price of $156.40.

RH (NYSE:RH) last posted its earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.12) by $0.15. RH had a net margin of 3.01% and a return on equity of 423.79%. The business had revenue of $800.33 million for the quarter, compared to analyst estimates of $792.55 million. During the same period in the prior year, the company posted $0.13 EPS. The company’s revenue for the quarter was down 1.7% on a year-over-year basis. As a group, research analysts expect that RH will post 4.2 EPS for the current year.

Insider Buying and Selling

In other RH news, CEO Gary G. Friedman sold 48,238 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $158.66, for a total value of $7,653,441.08. Following the completion of the sale, the chief executive officer owned 3,226,337 shares in the company, valued at approximately $511,890,628.42. This represents a 1.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mark S. Demilio sold 2,445 shares of the company’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $168.44, for a total value of $411,835.80. Following the completion of the sale, the director owned 25,680 shares of the company’s stock, valued at $4,325,539.20. This trade represents a 8.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 132,749 shares of company stock worth $21,856,812. 26.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RH

Several hedge funds have recently bought and sold shares of RH. BlackRock Inc. lifted its stake in RH by 41.7% in the second quarter. BlackRock Inc. now owns 1,978,271 shares of the company’s stock worth $325,881,000 after acquiring an additional 581,710 shares during the last quarter. Alyeska Investment Group L.P. lifted its position in shares of RH by 4.4% during the 2nd quarter. Alyeska Investment Group L.P. now owns 1,708,997 shares of the company’s stock worth $281,523,000 after purchasing an additional 72,674 shares during the last quarter. Senvest Management LLC grew its stake in shares of RH by 30.1% during the fourth quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock worth $150,948,000 after purchasing an additional 194,773 shares in the last quarter. Durable Capital Partners LP increased its holdings in RH by 125.1% in the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock valued at $122,119,000 after buying an additional 359,101 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in RH by 66.1% during the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock worth $116,546,000 after buying an additional 228,229 shares during the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.