RH (NYSE:RH) Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of RH (NYSE:RH) from a hold rating to a strong sell rating in a research note published on Tuesday,Zacks.com reports.

RH has been the topic of several other research reports. UBS Group lowered their price objective on shares of RH from $235.00 to $215.00 and set a “neutral” rating on the stock in a research note on Thursday, June 5th. Zelman & Associates decreased their price target on shares of RH from $305.00 to $251.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 9th. Robert W. Baird lifted their price target on shares of RH from $215.00 to $230.00 and gave the stock a “neutral” rating in a research note on Monday, June 16th. Citigroup lifted their price target on shares of RH from $200.00 to $233.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 3rd. Finally, Barclays decreased their price target on shares of RH from $436.00 to $385.00 and set an “overweight” rating on the stock in a research note on Friday, September 12th. Ten equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $259.29.

RH Trading Up 1.7%

Shares of RH stock opened at $233.43 on Tuesday. The company’s fifty day simple moving average is $220.37 and its 200-day simple moving average is $206.44. The company has a market cap of $4.38 billion, a price-to-earnings ratio of 43.47, a PEG ratio of 1.09 and a beta of 2.15. RH has a 1 year low of $123.03 and a 1 year high of $457.26.

RH (NYSE:RH) last announced its quarterly earnings data on Thursday, September 11th. The company reported $2.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.22 by ($0.29). The company had revenue of $899.15 million during the quarter, compared to analyst estimates of $906.58 million. RH had a negative return on equity of 113.58% and a net margin of 3.20%.The company’s revenue was up 8.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.69 EPS. RH has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, research analysts forecast that RH will post 4.39 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RH. Durable Capital Partners LP lifted its holdings in shares of RH by 125.1% during the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock valued at $122,119,000 after acquiring an additional 359,101 shares during the period. Senvest Management LLC lifted its holdings in shares of RH by 54.6% during the second quarter. Senvest Management LLC now owns 733,894 shares of the company’s stock valued at $138,713,000 after acquiring an additional 259,200 shares during the period. Atreides Management LP lifted its holdings in shares of RH by 69.1% during the first quarter. Atreides Management LP now owns 473,321 shares of the company’s stock valued at $110,951,000 after acquiring an additional 193,404 shares during the period. Scopus Asset Management L.P. bought a new position in shares of RH in the second quarter valued at about $30,457,000. Finally, Norges Bank bought a new position in shares of RH in the second quarter valued at about $29,083,000. 90.17% of the stock is owned by institutional investors.

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.