RH (NYSE:RH) Sees Unusually-High Trading Volume – Still a Buy?

RH (NYSE:RH) saw unusually-high trading volume on Monday . Approximately 1,635,100 shares changed hands during mid-day trading, an increase of 95% from the previous session’s volume of 838,933 shares.The stock last traded at $158.61 and had previously closed at $145.66.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Loop Capital reduced their price target on RH from $450.00 to $190.00 and set a “hold” rating for the company in a research report on Friday. Robert W. Baird reduced their target price on shares of RH from $400.00 to $215.00 and set a “neutral” rating for the company in a report on Thursday. Bank of America cut shares of RH from a “buy” rating to an “underperform” rating and lowered their price target for the company from $410.00 to $130.00 in a report on Thursday. Stifel Nicolaus reduced their price objective on shares of RH from $450.00 to $390.00 and set a “buy” rating for the company in a research note on Monday. Finally, The Goldman Sachs Group set a $276.00 target price on shares of RH in a research report on Thursday. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $283.94.

RH Trading Up 12.6 %

The stock has a 50-day simple moving average of $312.06 and a 200 day simple moving average of $348.44. The company has a market cap of $3.05 billion, a price-to-earnings ratio of 47.12, a PEG ratio of 2.65 and a beta of 2.44.

RH (NYSE:RH) last issued its earnings results on Wednesday, April 2nd. The company reported $1.58 EPS for the quarter, missing analysts’ consensus estimates of $1.91 by ($0.33). RH had a negative return on equity of 35.72% and a net margin of 2.25%. The company had revenue of $812.41 million during the quarter, compared to analysts’ expectations of $828.21 million. During the same quarter in the previous year, the company earned $0.72 EPS. The firm’s quarterly revenue was up 10.0% compared to the same quarter last year. As a group, research analysts forecast that RH will post 4.39 EPS for the current fiscal year.

Insider Activity at RH

In related news, insider Eri Chaya sold 25,000 shares of the company’s stock in a transaction dated Tuesday, January 21st. The stock was sold at an average price of $450.45, for a total value of $11,261,250.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Christina Hargarten sold 5,280 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $447.20, for a total value of $2,361,216.00. Following the completion of the sale, the chief accounting officer now directly owns 484 shares in the company, valued at approximately $216,444.80. The trade was a 91.60 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 55,880 shares of company stock worth $24,550,754 in the last three months. Company insiders own 28.10% of the company’s stock.

Hedge Funds Weigh In On RH

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. raised its stake in RH by 0.8% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,872 shares of the company’s stock valued at $1,524,000 after purchasing an additional 29 shares during the last quarter. Steward Partners Investment Advisory LLC raised its position in shares of RH by 6.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 549 shares of the company’s stock valued at $216,000 after buying an additional 31 shares during the last quarter. Insight Advisors LLC PA raised its position in shares of RH by 2.3% in the fourth quarter. Insight Advisors LLC PA now owns 1,449 shares of the company’s stock valued at $571,000 after buying an additional 33 shares during the last quarter. US Bancorp DE lifted its stake in shares of RH by 14.6% in the fourth quarter. US Bancorp DE now owns 283 shares of the company’s stock worth $111,000 after buying an additional 36 shares in the last quarter. Finally, UMB Bank n.a. boosted its position in RH by 125.8% during the fourth quarter. UMB Bank n.a. now owns 70 shares of the company’s stock worth $28,000 after acquiring an additional 39 shares during the last quarter. 90.17% of the stock is owned by hedge funds and other 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.