Wells Fargo & Company Lowers RH (NYSE:RH) Price Target to $225.00

RH (NYSE:RH) had its price target cut by research analysts at Wells Fargo & Company from $250.00 to $225.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price objective would suggest a potential upside of 75.25% from the company’s previous close.

A number of other equities research analysts also recently commented on RH. Zacks Research upgraded RH from a “strong sell” rating to a “hold” rating in a report on Friday, February 13th. JPMorgan Chase & Co. reduced their target price on RH from $275.00 to $225.00 and set an “overweight” rating on the stock in a report on Friday, December 19th. The Goldman Sachs Group decreased their target price on RH from $195.00 to $144.00 and set a “sell” rating for the company in a research report on Monday, December 15th. Bank of America lowered their price target on RH from $200.00 to $170.00 and set an “underperform” rating for the company in a research note on Friday, December 12th. Finally, TD Cowen lifted their price objective on shares of RH from $200.00 to $265.00 and gave the stock a “buy” rating in a research note on Tuesday, January 20th. Eight analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $226.81.

RH Stock Down 2.3%

Shares of NYSE:RH opened at $128.39 on Friday. The company has a debt-to-equity ratio of 944.39, a current ratio of 1.19 and a quick ratio of 0.26. The stock has a market cap of $2.41 billion, a price-to-earnings ratio of 23.17, a P/E/G ratio of 0.54 and a beta of 2.14. The company has a 50 day moving average of $195.18 and a 200-day moving average of $188.89. RH has a one year low of $123.03 and a one year high of $264.58.

RH (NYSE:RH) last issued its earnings results on Thursday, December 11th. The company reported $1.71 EPS for the quarter, missing the consensus estimate of $2.13 by ($0.42). RH had a net margin of 3.22% and a negative return on equity of 161.72%. The business had revenue of $883.81 million for the quarter, compared to the consensus estimate of $883.65 million. During the same quarter in the previous year, the firm posted $2.48 EPS. The business’s revenue was up 8.9% on a year-over-year basis. On average, sell-side analysts forecast that RH will post 4.39 earnings per share for the current year.

Insider Transactions at RH

In other RH news, Director Mark S. Demilio sold 2,254 shares of the stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total value of $495,880.00. Following the completion of the sale, the director directly owned 19,962 shares in the company, valued at $4,391,640. This represents a 10.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 5,154 shares of company stock valued at $1,100,148 over the last ninety days. 27.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On RH

Several institutional investors and hedge funds have recently modified their holdings of the business. Clearstead Advisors LLC raised its holdings in RH by 713.3% during the 3rd quarter. Clearstead Advisors LLC now owns 122 shares of the company’s stock worth $25,000 after buying an additional 107 shares during the period. Huntington National Bank boosted its holdings in shares of RH by 87.8% in the third quarter. Huntington National Bank now owns 139 shares of the company’s stock valued at $28,000 after buying an additional 65 shares during the period. Harvest Fund Management Co. Ltd bought a new stake in shares of RH during the third quarter worth $30,000. Wilmington Savings Fund Society FSB increased its position in shares of RH by 200.0% during the fourth quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock worth $31,000 after acquiring an additional 116 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new stake in shares of RH during the third quarter worth $31,000. 90.17% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Wells Fargo lowered its price target on RH from $250 to $225 but kept an “overweight” rating, which still implies large upside from current levels. This preserves institutional support and a bullish outlook among some analysts. Wells Fargo lowers RH price target
• Neutral Sentiment: Analyst research/stock‑forecast pages are being updated (see RH stock forecasts), which can drive intraday trading as investors compare updated models and PT revisions. RH (RH) Stock Forecasts
• Negative Sentiment: Recent quarterly results (reported Dec. 11) showed an EPS miss: $1.71 vs. consensus $2.13, with slim net margins (~3.2%) and a large year‑over‑year EPS decline from the prior year. The earnings disappointment is a key near‑term driver of bearish sentiment.
• Negative Sentiment: Weak returns and leverage: RH reported a negative return on equity (~‑161.7%) and an extremely high debt‑to‑equity ratio (~944), highlighting balance‑sheet and profitability risks that pressure valuation and investor confidence.
• Negative Sentiment: Technical/price context is unfavorable: the stock is trading well below its 50‑day (~$196) and 200‑day (~$190) moving averages and sits nearer its 12‑month low, signalling continued downward momentum that can amplify selling.

RH Company Profile

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.