Bank of America Reiterates Underperform Rating for RH (NYSE:RH)

RH (NYSE:RH)‘s stock had its “underperform” rating reaffirmed by stock analysts at Bank of America in a research note issued to investors on Monday,Benzinga reports. They presently have a $156.00 target price on the stock. Bank of America‘s price target points to a potential downside of 5.91% from the stock’s previous close.

Other equities research analysts also recently issued research reports about the company. Zacks Research raised RH from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 16th. Stifel Nicolaus raised their price objective on shares of RH from $110.00 to $130.00 and gave the company a “hold” rating in a research note on Friday, June 12th. KeyCorp reiterated a “sector weight” rating on shares of RH in a research note on Friday, June 12th. Morgan Stanley reissued an “overweight” rating and set a $240.00 price objective on shares of RH in a report on Monday, May 11th. Finally, Robert W. Baird increased their target price on shares of RH from $125.00 to $150.00 and gave the company a “neutral” rating in a report on Friday, June 12th. Seven analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $170.71.

RH Stock Performance

NYSE RH opened at $165.79 on Monday. The company has a current ratio of 1.13, a quick ratio of 0.32 and a debt-to-equity ratio of 54.96. The business’s 50 day moving average is $160.67 and its two-hundred day moving average is $160.31. RH has a 12-month low of $106.30 and a 12-month high of $257.00. The stock has a market capitalization of $3.13 billion, a price-to-earnings ratio of 32.01, a PEG ratio of 3.80 and a beta of 1.88.

RH (NYSE:RH) last issued its earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($2.12) by $0.15. RH had a return on equity of 423.79% and a net margin of 3.01%.The business had revenue of $800.33 million during the quarter, compared to the consensus estimate of $792.55 million. During the same period in the prior year, the business posted $0.13 EPS. The company’s revenue for the quarter was down 1.7% on a year-over-year basis. Research analysts expect that RH will post 4.27 EPS for the current year.

Insider Buying and Selling

In related news, Director Carlos Alberini acquired 11,388 shares of the stock in a transaction dated Monday, June 29th. The stock was bought at an average cost of $160.90 per share, with a total value of $1,832,329.20. Following the purchase, the director directly owned 32,190 shares of the company’s stock, valued at approximately $5,179,371. This represents a 54.74% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Gary G. Friedman sold 69,069 shares of the company’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $169.48, for a total value of $11,705,814.12. Following the sale, the chief executive officer owned 3,282,268 shares of the company’s stock, valued at approximately $556,278,780.64. The trade was a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 132,749 shares of company stock valued at $21,856,812. 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 RH. Senvest Management LLC grew its stake in shares of RH by 30.1% in the fourth quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock valued at $150,948,000 after buying an additional 194,773 shares in the last quarter. Durable Capital Partners LP grew its position in RH by 125.1% in the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock valued at $122,119,000 after acquiring an additional 359,101 shares in the last quarter. Alliancebernstein L.P. raised its stake in shares of RH by 66.1% during the third quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock valued at $116,546,000 after purchasing an additional 228,229 shares during the period. Two Sigma Investments LP raised its stake in shares of RH by 40.9% during the third quarter. Two Sigma Investments LP now owns 359,093 shares of the company’s stock valued at $72,953,000 after purchasing an additional 104,154 shares during the period. Finally, Morgan Stanley lifted its position in shares of RH by 0.8% during the fourth quarter. Morgan Stanley now owns 353,996 shares of the company’s stock worth $63,419,000 after purchasing an additional 2,658 shares in the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH Company Profile

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.