RealReal (NASDAQ:REAL) Shares Gap Down – Here’s Why

The RealReal, Inc. (NASDAQ:REAL) gapped down before the market opened on Wednesday . The stock had previously closed at $5.57, but opened at $5.36. RealReal shares last traded at $5.80, with a volume of 88,939 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages recently commented on REAL. UBS Group decreased their target price on RealReal from $10.00 to $9.00 and set a “neutral” rating for the company in a research report on Wednesday, February 26th. Northland Securities upped their price objective on shares of RealReal from $6.50 to $12.50 and gave the stock an “outperform” rating in a research report on Tuesday, December 17th. Finally, Wells Fargo & Company upgraded RealReal from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $4.00 to $15.00 in a report on Monday, December 9th. Two research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, RealReal presently has a consensus rating of “Moderate Buy” and a consensus price target of $8.33.

RealReal Stock Up 4.0 %

The firm’s 50-day simple moving average is $7.17 and its 200-day simple moving average is $6.25. The firm has a market capitalization of $644.68 million, a P/E ratio of -4.47 and a beta of 3.00.

RealReal (NASDAQ:REAL) last issued its quarterly earnings results on Thursday, February 20th. The company reported ($0.62) EPS for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.52). The business had revenue of $164.00 million for the quarter, compared to analyst estimates of $162.69 million. As a group, analysts expect that The RealReal, Inc. will post -0.4 EPS for the current fiscal year.

Insider Transactions at RealReal

In related news, CEO John E. Koryl sold 396,478 shares of the company’s stock in a transaction that occurred on Monday, January 6th. The stock was sold at an average price of $9.61, for a total value of $3,810,153.58. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Levesque Rati Sahi sold 113,917 shares of the firm’s stock in a transaction on Thursday, February 20th. The stock was sold at an average price of $6.90, for a total value of $786,027.30. Following the completion of the transaction, the chief executive officer now owns 2,307,199 shares in the company, valued at approximately $15,919,673.10. This trade represents a 4.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 654,761 shares of company stock worth $5,592,306. Company insiders own 9.78% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Quarry LP increased its position in shares of RealReal by 120.1% during the 4th quarter. Quarry LP now owns 2,875 shares of the company’s stock valued at $31,000 after purchasing an additional 1,569 shares during the last quarter. R Squared Ltd purchased a new stake in RealReal in the fourth quarter worth about $49,000. XTX Topco Ltd bought a new position in shares of RealReal in the third quarter worth about $63,000. Intech Investment Management LLC purchased a new position in shares of RealReal during the 3rd quarter valued at about $88,000. Finally, Harvest Fund Management Co. Ltd bought a new position in shares of RealReal during the 4th quarter valued at approximately $94,000. Institutional investors own 64.73% of the company’s stock.

About RealReal

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.