RH (NYSE:RH) Trading 4.1% Higher – Here’s What Happened

RH (NYSE:RH) rose 4.1% on Wednesday . The company traded as high as $146.65 and last traded at $147.0590. Approximately 258,091 shares changed hands during trading, a decline of 75% from the average daily volume of 1,043,558 shares. The stock had previously closed at $141.30.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH’s latest quarterly results exceeded expectations: its adjusted loss of $1.97 per share was better than the $2.12 consensus estimate, while revenue of $800.3 million topped estimates of $792.6 million.
• Neutral Sentiment: The company’s shares remain highly volatile, with a beta of 1.87, and are trading below their 50-day moving average, suggesting continued investor caution.
• Negative Sentiment: Revenue declined 1.7% year over year, and RH swung to a quarterly loss from earnings of $0.13 per share in the prior-year period. The weaker sales trend and pressure on profitability may be weighing on sentiment despite the earnings beat.
• Negative Sentiment: RH’s quick ratio of 0.32 and debt-to-equity ratio of 54.96 indicate a relatively leveraged balance sheet and limited liquid-asset coverage, which could amplify concerns if demand remains soft.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Bank of America began coverage on RH in a report on Monday, August 3rd. They issued an “underperform” rating and a $156.00 price objective on the stock. Zacks Research raised RH from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 16th. Wells Fargo & Company boosted their target price on shares of RH from $175.00 to $225.00 and gave the company an “overweight” rating in a research report on Tuesday, August 11th. JPMorgan Chase & Co. decreased their price target on shares of RH from $225.00 to $212.00 and set an “overweight” rating on the stock in a research note on Monday, August 17th. Finally, UBS Group lowered their price target on shares of RH from $160.00 to $155.00 and set a “neutral” rating on the stock in a research report on Tuesday, June 9th. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $173.36.

RH Stock Down 2.7%

The firm has a market cap of $2.73 billion, a price-to-earnings ratio of 27.91, a P/E/G ratio of 3.53 and a beta of 1.87. The company has a debt-to-equity ratio of 54.96, a current ratio of 1.13 and a quick ratio of 0.32. The stock has a 50-day moving average of $169.49 and a 200-day moving average of $154.48.

RH (NYSE:RH) last posted its quarterly earnings data on Thursday, June 11th. The company reported ($1.97) EPS for the quarter, topping analysts’ consensus estimates of ($2.12) by $0.15. The firm had revenue of $800.33 million for the quarter, compared to analyst estimates of $792.55 million. RH had a return on equity of 423.79% and a net margin of 3.01%.The company’s revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the company earned $0.13 EPS. Sell-side analysts predict that RH will post 4.2 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Carlos Alberini purchased 11,388 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were bought at an average price of $160.90 per share, for a total transaction of $1,832,329.20. Following the completion of the transaction, the director owned 32,190 shares of the company’s stock, valued at approximately $5,179,371. This trade represents a 54.74% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Gary G. Friedman sold 69,069 shares of the business’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $169.48, for a total value of $11,705,814.12. Following the completion of the transaction, the chief executive officer directly owned 3,282,268 shares of the company’s stock, valued at approximately $556,278,780.64. This trade represents a 2.06% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 132,749 shares of company stock worth $21,856,812. Company insiders own 26.90% of the company’s stock.

Hedge Funds Weigh In On RH

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Corient Private Wealth LP boosted its position in shares of RH by 54.2% during the 2nd quarter. Corient Private Wealth LP now owns 2,835 shares of the company’s stock worth $467,000 after acquiring an additional 997 shares in the last quarter. HighTower Advisors LLC raised its position in RH by 10.3% during the second quarter. HighTower Advisors LLC now owns 3,098 shares of the company’s stock valued at $510,000 after purchasing an additional 290 shares in the last quarter. California State Teachers Retirement System lifted its stake in RH by 16,138.1% during the second quarter. California State Teachers Retirement System now owns 2,835,168 shares of the company’s stock worth $467,037,000 after purchasing an additional 2,817,708 shares during the last quarter. TD Waterhouse Canada Inc. lifted its stake in RH by 33.3% during the second quarter. TD Waterhouse Canada Inc. now owns 536 shares of the company’s stock worth $88,000 after purchasing an additional 134 shares during the last quarter. Finally, AXQ Capital LP acquired a new stake in shares of RH in the 2nd quarter valued at $517,000. 90.17% of the stock is currently owned by institutional investors and hedge funds.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.