RH (NYSE:RH) Shares Gap Down After Earnings Miss

RH (NYSE:RH)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $249.35, but opened at $163.19. RH shares last traded at $143.34, with a volume of 2,899,580 shares.

The company reported $1.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.91 by ($0.33). The firm had revenue of $812.41 million for the quarter, compared to the consensus estimate of $828.21 million. RH had a net margin of 2.25% and a negative return on equity of 35.72%. The business’s revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.72 earnings per share.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Loop Capital lowered their target price on shares of RH from $450.00 to $190.00 and set a “hold” rating on the stock in a research note on Friday. Stifel Nicolaus dropped their target price on RH from $500.00 to $450.00 and set a “buy” rating for the company in a report on Monday, March 31st. The Goldman Sachs Group upgraded RH from a “sell” rating to a “neutral” rating and raised their target price for the stock from $261.00 to $374.00 in a research report on Thursday, January 30th. Telsey Advisory Group dropped their price objective on RH from $420.00 to $280.00 and set an “outperform” rating for the company in a research note on Thursday. Finally, StockNews.com cut RH from a “hold” rating to a “sell” rating in a report on Wednesday, March 19th. Three research analysts have rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, RH currently has a consensus rating of “Hold” and a consensus price target of $293.81.

Insider Buying and Selling at RH

In other news, CAO Christina Hargarten sold 5,280 shares of RH stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $447.20, for a total transaction of $2,361,216.00. Following the completion of the sale, the chief accounting officer now owns 484 shares in the company, valued at $216,444.80. The trade was a 91.60 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Eri Chaya sold 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $450.45, for a total transaction of $11,261,250.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 66,380 shares of company stock worth $28,922,379. Insiders own 28.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP lifted its stake in RH by 14.0% in the fourth quarter. Wellington Management Group LLP now owns 44,880 shares of the company’s stock valued at $17,664,000 after buying an additional 5,506 shares during the period. 111 Capital acquired a new position in RH during the fourth quarter valued at approximately $211,000. PKO Investment Management Joint Stock Co bought a new stake in RH in the fourth quarter valued at approximately $590,000. Copia Wealth Management acquired a new stake in RH in the fourth quarter worth $106,000. Finally, Polar Asset Management Partners Inc. increased its position in shares of RH by 321.4% in the 4th quarter. Polar Asset Management Partners Inc. now owns 17,700 shares of the company’s stock valued at $6,967,000 after buying an additional 13,500 shares in the last quarter. 90.17% of the stock is currently owned by institutional investors.

RH Stock Down 2.7 %

The stock has a market capitalization of $2.70 billion, a P/E ratio of 41.77, a price-to-earnings-growth ratio of 2.65 and a beta of 2.44. The company has a fifty day simple moving average of $312.06 and a two-hundred day simple moving average of $348.23.

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.