RealReal (NASDAQ:REAL) Stock Price Down 13.2% on Disappointing Earnings

Shares of The RealReal, Inc. (NASDAQ:REAL) fell 13.2% during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $6.99 and last traded at $6.91. 1,440,690 shares traded hands during trading, a decline of 54% from the average session volume of 3,137,537 shares. The stock had previously closed at $7.96.

The company reported ($0.62) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.52). The business had revenue of $164.00 million during the quarter, compared to analyst estimates of $162.69 million.

Analysts Set New Price Targets

A number of research analysts recently issued reports on REAL shares. Northland Securities boosted their target price on shares of RealReal from $6.50 to $12.50 and gave the company an “outperform” rating in a research report on Tuesday, December 17th. Wells Fargo & Company upgraded shares of RealReal from an “equal weight” rating to an “overweight” rating and upped their price objective for the stock from $4.00 to $15.00 in a research report on Monday, December 9th. Finally, UBS Group lifted their price target on RealReal from $3.00 to $3.25 and gave the company a “neutral” rating in a research note on Tuesday, November 5th. Two equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $7.38.

Insider Activity

In other news, CEO John E. Koryl sold 396,478 shares of the firm’s stock in a transaction that occurred on Monday, January 6th. The shares were sold at an average price of $9.61, for a total transaction of $3,810,153.58. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Steve Ming Lo sold 96,666 shares of the company’s stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $6.10, for a total value of $589,662.60. Following the completion of the transaction, the chief accounting officer now owns 391,525 shares in the company, valued at $2,388,302.50. This represents a 19.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 9.78% of the company’s stock.

Institutional Investors Weigh In On RealReal

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quarry LP increased its position in shares of RealReal by 120.1% during the 4th quarter. Quarry LP now owns 2,875 shares of the company’s stock worth $31,000 after purchasing an additional 1,569 shares during the last quarter. R Squared Ltd purchased a new position in RealReal during the fourth quarter worth about $49,000. Harvest Fund Management Co. Ltd acquired a new stake in shares of RealReal during the fourth quarter valued at about $94,000. Jag Capital Management LLC purchased a new stake in shares of RealReal in the 4th quarter valued at approximately $126,000. Finally, PharVision Advisers LLC purchased a new stake in shares of RealReal in the 4th quarter valued at approximately $133,000. Hedge funds and other institutional investors own 64.73% of the company’s stock.

RealReal Trading Down 12.1 %

The stock has a market capitalization of $767.28 million, a price-to-earnings ratio of -7.94 and a beta of 2.83. The firm’s fifty day moving average price is $9.12 and its 200 day moving average price is $5.54.

About RealReal

The RealReal, Inc operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.