RealReal (NASDAQ:REAL) Stock Price Down 13.2% After Earnings Miss

The RealReal, Inc. (NASDAQ:REAL) shares were down 13.2% on Friday following a dissappointing earnings announcement. The stock traded as low as $6.99 and last traded at $6.91. Approximately 1,440,690 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 3,137,537 shares. The stock had previously closed at $7.96.

The company reported ($0.62) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.52). The company had revenue of $164.00 million during the quarter, compared to analyst estimates of $162.69 million.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on REAL shares. Northland Securities increased their price target on RealReal from $6.50 to $12.50 and gave the stock an “outperform” rating in a report on Tuesday, December 17th. Wells Fargo & Company upgraded RealReal from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $4.00 to $15.00 in a report on Monday, December 9th. Finally, UBS Group increased their price target on RealReal from $3.00 to $3.25 and gave the stock a “neutral” rating in a report on Tuesday, November 5th. Two equities research analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $7.38.

Insider Activity at RealReal

In related news, CAO Steve Ming Lo sold 96,666 shares of the firm’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $6.10, for a total value of $589,662.60. Following the transaction, the chief accounting officer now owns 391,525 shares of the company’s stock, valued at approximately $2,388,302.50. This trade represents a 19.80 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John E. Koryl sold 396,478 shares of the firm’s stock in a transaction dated Monday, January 6th. The shares were sold at an average price of $9.61, for a total transaction of $3,810,153.58. The disclosure for this sale can be found here. 9.78% of the stock is owned by insiders.

Institutional Investors Weigh In On RealReal

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Park Edge Advisors LLC purchased a new stake in shares of RealReal during the 3rd quarter worth approximately $41,000. Chicago Partners Investment Group LLC increased its stake in shares of RealReal by 53.0% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 55,464 shares of the company’s stock worth $163,000 after purchasing an additional 19,215 shares during the last quarter. AM Investment Strategies LLC purchased a new stake in shares of RealReal during the 3rd quarter worth approximately $167,000. Quantum Private Wealth LLC increased its stake in shares of RealReal by 6.1% during the 3rd quarter. Quantum Private Wealth LLC now owns 173,248 shares of the company’s stock worth $544,000 after purchasing an additional 10,000 shares during the last quarter. Finally, River Global Investors LLP increased its stake in shares of RealReal by 4.9% during the 3rd quarter. River Global Investors LLP now owns 359,623 shares of the company’s stock worth $1,127,000 after purchasing an additional 16,896 shares during the last quarter. Hedge funds and other institutional investors own 64.73% of the company’s stock.

RealReal Stock Performance

The company’s 50 day moving average price is $9.07 and its 200-day moving average price is $5.56. The company has a market cap of $708.60 million, a PE ratio of -7.34 and a beta of 2.83.

RealReal Company Profile

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.