RH (NYSE:RH) Shares Gap Up – What’s Next?

RH (NYSE:RH)’s share price gapped up prior to trading on Monday . The stock had previously closed at $194.28, but opened at $225.80. RH shares last traded at $231.73, with a volume of 658,240 shares.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Stifel Nicolaus cut their target price on RH from $450.00 to $390.00 and set a “buy” rating on the stock in a research report on Monday, April 7th. Morgan Stanley reduced their price objective on shares of RH from $530.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, April 3rd. Citigroup restated a “neutral” rating and set a $200.00 price objective (down previously from $437.00) on shares of RH in a report on Thursday, April 3rd. Bank of America cut RH from a “buy” rating to an “underperform” rating and reduced their price objective for the stock from $410.00 to $130.00 in a research note on Thursday, April 3rd. Finally, Wedbush reduced their price target on RH from $500.00 to $350.00 and set an “outperform” rating for the company in a research report on Wednesday, March 26th. Three research analysts have rated the stock with a sell rating, five have issued a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat, RH presently has an average rating of “Hold” and an average target price of $273.31.

RH Stock Performance

The stock has a market capitalization of $4.23 billion, a price-to-earnings ratio of 64.89, a price-to-earnings-growth ratio of 2.65 and a beta of 2.36. The business’s 50 day simple moving average is $199.99 and its 200-day simple moving average is $316.65.

RH (NYSE:RH) last released its earnings results on Wednesday, April 2nd. The company reported $1.58 EPS for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $828.21 million. During the same period in the prior year, the company earned $0.72 earnings per share. The firm’s revenue for the quarter was up 10.0% on a year-over-year basis. As a group, sell-side analysts expect that RH will post 4.39 EPS for the current year.

Institutional Trading of RH

Hedge funds have recently modified their holdings of the company. LPL Financial LLC grew its holdings in shares of RH by 61.3% in the 4th quarter. LPL Financial LLC now owns 9,141 shares of the company’s stock worth $3,598,000 after purchasing an additional 3,473 shares during the last quarter. Sterling Capital Management LLC boosted its position in shares of RH by 49.7% in the 4th quarter. Sterling Capital Management LLC now owns 762 shares of the company’s stock worth $300,000 after purchasing an additional 253 shares during the last quarter. Victory Capital Management Inc. grew its position in shares of RH by 0.9% during the 4th quarter. Victory Capital Management Inc. now owns 50,684 shares of the company’s stock worth $19,949,000 after buying an additional 445 shares during the period. L.M. Kohn & Company bought a new stake in RH in the fourth quarter valued at approximately $289,000. Finally, Pictet Asset Management Holding SA increased its position in shares of RH by 16.2% in the 4th quarter. Pictet Asset Management Holding SA now owns 2,257 shares of the company’s stock valued at $888,000 after buying an additional 314 shares in the last quarter. Institutional investors own 90.17% of the company’s stock.

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.