RealReal’s (REAL) Buy Rating Reiterated at Roth Capital

Roth Capital reaffirmed their buy rating on shares of RealReal (NASDAQ:REAL) in a research note published on Friday morning,Benzinga reports. Roth Capital currently has a $19.00 price target on the stock.

Several other equities analysts have also weighed in on the stock. BTIG Research reiterated a “buy” rating and set a $17.00 price objective on shares of RealReal in a report on Thursday, September 17th. UBS Group raised their target price on RealReal from $14.00 to $16.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of RealReal in a research note on Thursday. Six equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.75.

RealReal Price Performance

RealReal stock opened at $10.39 on Friday. RealReal has a 12-month low of $8.05 and a 12-month high of $17.39. The firm’s fifty day moving average is $10.07 and its 200 day moving average is $10.59. The company has a market capitalization of $1.26 billion, a PE ratio of -9.28 and a beta of 2.81.

RealReal (NASDAQ:REAL) last issued its earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.01. The company had revenue of $192.57 million for the quarter, compared to the consensus estimate of $188.11 million. RealReal’s revenue was up 16.6% compared to the same quarter last year. Sell-side analysts expect that RealReal will post -0.12 EPS for the current fiscal year.

Insider Activity

In other news, insider Luke Friang sold 22,028 shares of RealReal stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $10.98, for a total transaction of $241,867.44. Following the completion of the transaction, the insider directly owned 508,648 shares in the company, valued at $5,584,955.04. This trade represents a 4.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Todd Suko sold 17,567 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $10.97, for a total transaction of $192,709.99. Following the sale, the insider directly owned 587,897 shares of the company’s stock, valued at approximately $6,449,230.09. The trade was a 2.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 173,004 shares of company stock valued at $1,899,283. 2.66% of the stock is currently owned by insiders.

Hedge Funds Weigh In On RealReal

A number of hedge funds have recently added to or reduced their stakes in REAL. BlackRock Inc. purchased a new stake in shares of RealReal in the second quarter worth approximately $134,510,000. AWM Investment Company Inc. bought a new position in shares of RealReal in the second quarter valued at approximately $21,265,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of RealReal by 58.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock valued at $36,765,000 after purchasing an additional 1,489,939 shares in the last quarter. Bank of America Corp DE bought a new position in shares of RealReal in the second quarter valued at approximately $12,655,000. Finally, Renaissance Technologies LLC boosted its position in shares of RealReal by 117.9% during the first quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company’s stock valued at $14,947,000 after buying an additional 890,700 shares during the last quarter. Institutional investors and hedge funds own 64.73% of the company’s stock.

Key RealReal News

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Debt refinancing reduces near-term financial pressure. The RealReal secured a $150 million senior secured term loan and a $25 million revolving credit facility. Proceeds will be used to redeem its 2029 senior secured notes, extending secured debt maturities to 2033 and reducing annual interest expense by approximately $4 million. The RealReal refinancing announcement
• Positive Sentiment: Improved cash-flow outlook supports the refinancing story. Coverage highlighted that The RealReal is entering its third consecutive year of positive free cash flow, with the potential for free cash flow to roughly double next year. Lower interest costs could further support cash generation and deleveraging. Why The RealReal stock rose
• Positive Sentiment: Analyst targets imply substantial upside. Roth Capital reaffirmed its “buy” rating and set a $19 price target, while a broader group of nine analysts reportedly has an average target of $17.75. These targets reflect confidence in the company’s operating and financial improvements. Analyst price targets for The RealReal
• Neutral Sentiment: Trading activity has been elevated. The recent rally occurred on above-average volume, indicating strong investor interest, but heightened activity can also signal increased short-term volatility. Zacks analysis of The RealReal
• Negative Sentiment: Estimate revisions remain a risk. Zacks cautioned that the latest trend in earnings-estimate revisions may not support continued near-term gains, despite the stock’s recent strength.

RealReal Company Profile

The RealReal, Inc operates an online and physical marketplace for authenticated, pre-owned luxury goods. The company enables individuals to consign and purchase luxury apparel, handbags, shoes, jewelry, watches, fine art and home décor from leading luxury brands.

The RealReal provides sellers with services that include item evaluation, authentication, pricing, merchandising, photography, listing, shipping and customer support. Buyers can shop through the company’s website, mobile application and select retail locations, with products authenticated before being offered for sale.

Founded in 2011 by Julie Wainwright, The RealReal primarily serves customers in the United States.