RH (NYSE:RH) Stock Price Up 6.9% – Still a Buy?

Shares of RH (NYSE:RH) traded up 6.9% during mid-day trading on Wednesday . The stock traded as high as $184.00 and last traded at $186.5650. 93,941 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 1,114,164 shares. The stock had previously closed at $174.55.

Wall Street Analysts Forecast Growth

RH has been the subject of a number of research analyst reports. Robert W. Baird increased their target price on RH from $125.00 to $150.00 and gave the company a “neutral” rating in a report on Friday, June 12th. KeyCorp reaffirmed a “sector weight” rating on shares of RH in a research note on Friday, June 12th. Wall Street Zen cut RH from a “hold” rating to a “sell” rating in a research report on Saturday, April 4th. The Goldman Sachs Group raised RH from a “sell” rating to a “neutral” rating and increased their price objective for the company from $86.00 to $155.00 in a research note on Wednesday, July 8th. Finally, Zacks Research upgraded RH from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 16th. Seven 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 MarketBeat.com, RH currently has an average rating of “Hold” and an average price target of $171.71.

RH Trading Down 0.7%

The firm has a market capitalization of $3.57 billion, a price-to-earnings ratio of 36.46, a PEG ratio of 4.37 and a beta of 1.88. The company has a fifty day moving average price of $150.48 and a two-hundred day moving average price of $162.06. The company has a current ratio of 1.13, a quick ratio of 0.32 and a debt-to-equity ratio of 54.96.

RH (NYSE:RH) last posted its quarterly earnings results on Thursday, June 11th. The company reported ($1.97) EPS for the quarter, beating the consensus estimate of ($2.12) by $0.15. The firm had revenue of $800.33 million during the quarter, compared to analysts’ expectations of $792.55 million. RH had a return on equity of 423.79% and a net margin of 3.01%.The business’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.13 earnings per share. As a group, research analysts forecast that RH will post 4.27 earnings per share for the current fiscal year.

Insider Transactions at RH

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Harvest Fund Management Co. Ltd purchased a new stake in RH in the third quarter valued at $30,000. Wilmington Savings Fund Society FSB grew its holdings in shares of RH by 200.0% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock worth $31,000 after purchasing an additional 116 shares during the period. Advisory Services Network LLC purchased a new position in shares of RH during the 3rd quarter worth $31,000. Modus Advisors LLC acquired a new stake in shares of RH during the 4th quarter worth about $34,000. Finally, Geneos Wealth Management Inc. acquired a new stake in shares of RH during the 1st quarter worth about $42,000. 90.17% of the stock is currently owned by hedge funds and other institutional investors.

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.