RH (NYSE:RH) Lowered to “Underperform” Rating by Bank of America

RH (NYSE:RH) was downgraded by equities researchers at Bank of America from a “buy” rating to an “underperform” rating in a note issued to investors on Thursday,Briefing.com Automated Import reports. They presently have a $130.00 price objective on the stock, down from their previous price objective of $410.00. Bank of America‘s target price would indicate a potential downside of 13.51% from the company’s current price.

RH has been the subject of a number of other reports. Loop Capital upped their price target on RH from $320.00 to $450.00 and gave the company a “hold” rating in a research report on Monday, December 16th. Wells Fargo & Company dropped their target price on RH from $375.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday. Telsey Advisory Group reduced their price target on RH from $420.00 to $280.00 and set an “outperform” rating on the stock in a report on Thursday. Wedbush dropped their price objective on shares of RH from $500.00 to $350.00 and set an “outperform” rating for the company in a report on Wednesday, March 26th. Finally, Morgan Stanley cut their price objective on shares of RH from $530.00 to $300.00 and set an “overweight” rating for the company in a research report on Thursday. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $310.06.

RH Price Performance

NYSE RH traded down $99.05 during mid-day trading on Thursday, hitting $150.30. The stock had a trading volume of 8,749,953 shares, compared to its average volume of 785,699. RH has a twelve month low of $138.65 and a twelve month high of $457.26. The firm’s 50 day moving average is $323.21 and its 200 day moving average is $350.91. The stock has a market capitalization of $2.80 billion, a price-to-earnings ratio of 43.19, a PEG ratio of 2.65 and a beta of 2.50.

RH (NYSE:RH) last issued its earnings results on Wednesday, April 2nd. The company reported $1.58 EPS for the quarter, missing analysts’ consensus estimates of $1.91 by ($0.33). RH had a net margin of 2.25% and a negative return on equity of 35.72%. The business had revenue of $812.41 million during the quarter, compared to analyst estimates of $828.21 million. During the same quarter last year, the company earned $0.72 earnings per share. RH’s quarterly revenue was up 10.0% on a year-over-year basis. As a group, equities research analysts expect that RH will post 4.39 earnings per share for the current year.

Insider Activity at RH

In other RH news, insider Eri Chaya sold 10,000 shares of the business’s stock in a transaction on Monday, January 6th. The shares were sold at an average price of $416.27, for a total value of $4,162,700.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Christina Hargarten sold 5,280 shares of the company’s stock in a transaction on Friday, January 17th. The stock was sold at an average price of $447.20, for a total value of $2,361,216.00. Following the sale, the chief accounting officer now directly owns 484 shares in the company, valued at $216,444.80. This represents a 91.60 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 66,380 shares of company stock worth $28,922,379 in the last three months. 28.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On RH

Institutional investors and hedge funds have recently made changes to their positions in the stock. Alliancebernstein L.P. raised its holdings in RH by 1,960.8% in the fourth quarter. Alliancebernstein L.P. now owns 363,698 shares of the company’s stock valued at $143,148,000 after acquiring an additional 346,050 shares in the last quarter. Norges Bank acquired a new stake in RH in the fourth quarter valued at $54,314,000. Raymond James Financial Inc. acquired a new stake in RH in the fourth quarter valued at $52,190,000. Freestone Grove Partners LP purchased a new stake in RH during the 4th quarter worth about $44,744,000. Finally, American Century Companies Inc. boosted its position in shares of RH by 2,227.7% during the 4th quarter. American Century Companies Inc. now owns 105,701 shares of the company’s stock worth $41,603,000 after acquiring an additional 101,160 shares in the last quarter. 90.17% of the stock is owned by institutional investors and hedge funds.

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.