RealReal (NASDAQ:REAL) Shares Gap Down Following Weak Earnings

The RealReal, Inc. (NASDAQ:REAL) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $7.29, but opened at $6.59. RealReal shares last traded at $5.51, with a volume of 36,625 shares traded.

The company reported ($0.14) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.01). The business had revenue of $160.03 million during the quarter, compared to analysts’ expectations of $159.98 million.

Analysts Set New Price Targets

Separately, UBS Group lifted their price objective on shares of RealReal from $6.00 to $7.00 and gave the company a “neutral” rating in a research report on Friday. Two analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $8.40.

Insider Activity at RealReal

In other RealReal news, insider Luke Thomas Friang sold 18,503 shares of the stock in a transaction dated Thursday, February 20th. The shares were sold at an average price of $6.90, for a total value of $127,670.70. Following the transaction, the insider now directly owns 556,557 shares of the company’s stock, valued at $3,840,243.30. This represents a 3.22 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Steve Ming Lo sold 23,477 shares of the firm’s stock in a transaction that occurred on Thursday, February 20th. The stock was sold at an average price of $6.90, for a total transaction of $161,991.30. Following the sale, the chief accounting officer now owns 330,117 shares of the company’s stock, valued at $2,277,807.30. This trade represents a 6.64 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 258,283 shares of company stock worth $1,782,153. Company insiders own 9.78% of the company’s stock.

Institutional Trading of RealReal

Hedge funds have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. grew its holdings in RealReal by 1.8% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 290,048 shares of the company’s stock valued at $1,563,000 after buying an additional 5,172 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of RealReal by 3.9% in the first quarter. Vanguard Group Inc. now owns 5,097,765 shares of the company’s stock valued at $27,477,000 after acquiring an additional 192,633 shares in the last quarter. Jupiter Asset Management Ltd. bought a new position in RealReal during the first quarter worth about $915,000. XTX Topco Ltd raised its stake in RealReal by 133.6% in the 1st quarter. XTX Topco Ltd now owns 155,988 shares of the company’s stock worth $841,000 after purchasing an additional 89,219 shares in the last quarter. Finally, Capricorn Fund Managers Ltd boosted its holdings in RealReal by 12.6% in the 1st quarter. Capricorn Fund Managers Ltd now owns 901,114 shares of the company’s stock valued at $4,857,000 after purchasing an additional 101,114 shares during the period. 64.73% of the stock is owned by institutional investors and hedge funds.

RealReal Trading Down 30.7 %

The stock’s 50-day simple moving average is $5.72 and its 200-day simple moving average is $6.71. The stock has a market cap of $571.12 million, a price-to-earnings ratio of -3.91 and a beta of 2.61.

RealReal Company Profile

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.