RH (NYSE:RH) Trading Down 4.2% on Disappointing Earnings

Shares of RH (NYSE:RH) fell 4.2% on Thursday following a dissappointing earnings announcement. The stock traded as low as $381.70 and last traded at $382.16. 135,663 shares were traded during trading, a decline of 81% from the average session volume of 707,411 shares. The stock had previously closed at $398.95.

The company reported $2.48 earnings per share for the quarter, missing the consensus estimate of $2.67 by ($0.19). The firm had revenue of $811.73 million for the quarter, compared to the consensus estimate of $812.19 million. RH had a negative return on equity of 11.29% and a net margin of 1.13%. The business’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter last year, the firm posted ($0.42) earnings per share.

Analysts Set New Price Targets

Several equities analysts recently issued reports on RH shares. Loop Capital boosted their target price on shares of RH from $230.00 to $320.00 and gave the company a “hold” rating in a report on Monday, September 16th. TD Cowen boosted their price objective on RH from $325.00 to $350.00 and gave the company a “buy” rating in a research note on Friday, September 13th. Bank of America raised their target price on RH from $310.00 to $359.00 and gave the stock a “buy” rating in a research note on Friday, September 13th. JPMorgan Chase & Co. lowered their target price on RH from $345.00 to $338.00 and set an “overweight” rating for the company in a report on Monday, September 16th. Finally, Guggenheim increased their price target on RH from $425.00 to $550.00 and gave the stock a “buy” rating in a report on Friday. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat.com, RH has an average rating of “Hold” and a consensus target price of $377.07.

Insiders Place Their Bets

In other RH news, Director Mark S. Demilio sold 2,000 shares of the business’s stock in a transaction on Wednesday, September 18th. The stock was sold at an average price of $340.30, for a total value of $680,600.00. Following the sale, the director now directly owns 10,914 shares in the company, valued at $3,714,034.20. The trade was a 15.49 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Stefan Duban sold 4,285 shares of the company’s stock in a transaction on Thursday, September 19th. The shares were sold at an average price of $346.37, for a total value of $1,484,195.45. Following the transaction, the insider now directly owns 78 shares in the company, valued at $27,016.86. This represents a 98.21 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 8,285 shares of company stock valued at $2,871,935. Insiders own 28.10% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Inspire Trust Co. N.A. grew its holdings in RH by 8.6% during the 3rd quarter. Inspire Trust Co. N.A. now owns 5,065 shares of the company’s stock valued at $1,694,000 after buying an additional 400 shares in the last quarter. Blankinship & Foster LLC bought a new position in shares of RH in the third quarter valued at approximately $846,000. Sanctuary Advisors LLC grew its stake in RH by 55.6% during the third quarter. Sanctuary Advisors LLC now owns 3,755 shares of the company’s stock valued at $1,382,000 after acquiring an additional 1,341 shares in the last quarter. Virtu Financial LLC bought a new stake in RH during the 3rd quarter worth approximately $4,268,000. Finally, Invst LLC purchased a new stake in RH in the 3rd quarter worth approximately $752,000. 90.17% of the stock is currently owned by hedge funds and other institutional investors.

RH Trading Up 16.9 %

The company’s fifty day simple moving average is $345.55 and its 200 day simple moving average is $296.23. The stock has a market capitalization of $8.22 billion, a P/E ratio of 262.31, a P/E/G ratio of 2.44 and a beta of 2.44.

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.