RH (NYSE:RH) Shares Gap Up on Insider Buying Activity

RH (NYSE:RH)’s share price gapped up prior to trading on Thursday following insider buying activity. The stock had previously closed at $219.19, but opened at $234.02. RH shares last traded at $237.26, with a volume of 244,437 shares.

Specifically, CEO Gary G. Friedman purchased 34,200 shares of the business’s stock in a transaction dated Tuesday, June 25th. The stock was bought at an average cost of $215.00 per share, with a total value of $7,353,000.00. Following the completion of the acquisition, the chief executive officer now directly owns 3,339,263 shares in the company, valued at approximately $717,941,545. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In related news, insider Eri Chaya sold 100,000 shares of the company’s stock in a transaction on Monday, May 6th. The stock was sold at an average price of $279.92, for a total value of $27,992,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gary G. Friedman bought 34,200 shares of the company’s stock in a transaction that occurred on Tuesday, June 25th. The stock was acquired at an average price of $215.00 per share, with a total value of $7,353,000.00. Following the completion of the purchase, the chief executive officer now directly owns 3,339,263 shares of the company’s stock, valued at approximately $717,941,545. The disclosure for this purchase can be found here. Insiders sold a total of 103,000 shares of company stock valued at $28,897,430 over the last three months. 28.10% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on RH. Wells Fargo & Company dropped their target price on RH from $360.00 to $350.00 and set an “overweight” rating for the company in a research note on Friday, June 14th. Oppenheimer reiterated a “market perform” rating on shares of RH in a research note on Monday, April 1st. The Goldman Sachs Group lowered their price target on RH from $264.00 to $226.00 and set a “sell” rating for the company in a research report on Monday, June 17th. Bank of America lowered their price target on RH from $375.00 to $325.00 and set a “buy” rating for the company in a research report on Friday, June 14th. Finally, TD Cowen lowered their price target on RH from $350.00 to $325.00 and set a “buy” rating for the company in a research report on Friday, June 14th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, RH currently has an average rating of “Hold” and a consensus target price of $310.46.

RH Price Performance

The company has a 50-day moving average price of $259.28 and a two-hundred day moving average price of $271.03. The company has a market cap of $4.51 billion, a PE ratio of 67.71, a P/E/G ratio of 0.89 and a beta of 2.51.

RH (NYSE:RH) last issued its quarterly earnings results on Thursday, June 13th. The company reported ($0.40) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.32). The business had revenue of $726.96 million during the quarter, compared to analysts’ expectations of $725.15 million. RH had a net margin of 2.72% and a negative return on equity of 29.15%. The company’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same period in the prior year, the company posted $2.21 EPS. On average, equities research analysts anticipate that RH will post 8.15 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RH. Janus Henderson Group PLC lifted its stake in RH by 0.4% during the first quarter. Janus Henderson Group PLC now owns 8,580 shares of the company’s stock worth $2,986,000 after purchasing an additional 38 shares during the last quarter. Insight Advisors LLC PA boosted its holdings in RH by 2.8% in the first quarter. Insight Advisors LLC PA now owns 1,447 shares of the company’s stock worth $504,000 after purchasing an additional 39 shares during the period. Tradition Wealth Management LLC boosted its holdings in RH by 14.8% in the fourth quarter. Tradition Wealth Management LLC now owns 350 shares of the company’s stock worth $102,000 after purchasing an additional 45 shares during the period. Texas Permanent School Fund Corp boosted its holdings in RH by 0.4% in the first quarter. Texas Permanent School Fund Corp now owns 13,378 shares of the company’s stock worth $4,659,000 after purchasing an additional 47 shares during the period. Finally, New York Life Investment Management LLC boosted its holdings in RH by 4.1% in the fourth quarter. New York Life Investment Management LLC now owns 1,703 shares of the company’s stock worth $496,000 after purchasing an additional 67 shares during the period. Hedge funds and other 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.