Investors Buy Large Volume of Call Options on RealReal (NASDAQ:REAL)

The RealReal, Inc. (NASDAQ:REAL) was the target of some unusual options trading activity on Thursday. Traders bought 8,840 call options on the company. This represents an increase of approximately 282% compared to the average volume of 2,316 call options.

Wall Street Analyst Weigh In

REAL has been the subject of several analyst reports. UBS Group reduced their target price on RealReal from $10.00 to $9.00 and set a “neutral” rating for the company in a report on Wednesday, February 26th. Wells Fargo & Company raised shares of RealReal from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $4.00 to $15.00 in a research note on Monday, December 9th. Finally, Northland Securities lifted their target price 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. Two investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, RealReal currently has an average rating of “Moderate Buy” and a consensus target price of $8.33.

Insider Activity at RealReal

In other RealReal news, CEO Levesque Rati Sahi sold 113,917 shares of RealReal stock in a transaction that occurred on Thursday, February 20th. The shares were sold at an average price of $6.90, for a total value of $786,027.30. Following the transaction, the chief executive officer now owns 2,307,199 shares in the company, valued at approximately $15,919,673.10. The trade was a 4.71 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Luke Thomas Friang sold 18,503 shares of the stock in a transaction on Thursday, February 20th. The shares were sold at an average price of $6.90, for a total value of $127,670.70. Following the sale, the insider now owns 556,557 shares of the company’s stock, valued at $3,840,243.30. This trade represents a 3.22 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 654,761 shares of company stock worth $5,592,306 over the last quarter. 9.78% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of REAL. Quarry LP lifted its holdings 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 buying an additional 1,569 shares during the last quarter. R Squared Ltd bought a new position in RealReal during the fourth quarter valued at approximately $49,000. XTX Topco Ltd bought a new position in RealReal during the third quarter valued at approximately $63,000. Intech Investment Management LLC acquired a new stake in RealReal in the third quarter valued at approximately $88,000. Finally, Harvest Fund Management Co. Ltd bought a new stake in RealReal in the fourth quarter worth approximately $94,000. Hedge funds and other institutional investors own 64.73% of the company’s stock.

RealReal Price Performance

NASDAQ REAL opened at $5.32 on Friday. The company has a 50 day simple moving average of $8.52 and a 200-day simple moving average of $5.79. RealReal has a 52-week low of $2.24 and a 52-week high of $11.38. The firm has a market capitalization of $591.83 million, a price-to-earnings ratio of -4.12 and a beta of 3.00.

RealReal (NASDAQ:REAL) last issued its earnings results on Thursday, February 20th. The company reported ($0.62) earnings per share (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 the consensus estimate of $162.69 million. On average, analysts predict that RealReal will post -0.4 EPS for the current year.

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.