RealReal (NASDAQ:REAL) Trading Down 4.9% – Here’s Why

The RealReal, Inc. (NASDAQ:REAL) was down 4.9% on Monday . The stock traded as low as $10.47 and last traded at $10.3910. Approximately 678,370 shares traded hands during trading, a decline of 80% from the average session volume of 3,325,927 shares. The stock had previously closed at $10.93.

Wall Street Analyst Weigh In

REAL has been the topic of a number of research reports. Robert W. Baird set a $13.00 price objective on RealReal in a research report on Friday, May 8th. Roth Capital reissued a “buy” rating and set a $19.00 price target on shares of RealReal in a research note on Friday, August 7th. UBS Group boosted their price target on RealReal from $14.00 to $16.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. BTIG Research reaffirmed a “buy” rating and issued a $17.00 price objective on shares of RealReal in a research note on Wednesday, June 3rd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of RealReal in a report on Friday, July 17th. Six analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $17.75.

RealReal Price Performance

The firm has a market capitalization of $1.24 billion, a price-to-earnings ratio of -9.10 and a beta of 2.69. The stock has a fifty day moving average of $11.59 and a two-hundred day moving average of $10.85.

RealReal (NASDAQ:REAL) last announced its earnings results on Thursday, August 6th. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.02) by $0.01. The company had revenue of $192.57 million for the quarter, compared to analyst estimates of $188.11 million. The firm’s revenue was up 16.6% on a year-over-year basis. On average, research analysts forecast that The RealReal, Inc. will post -0.13 EPS for the current year.

Insider Buying and Selling

In related news, insider Luke Thomas Friang sold 22,028 shares of RealReal stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $10.98, for a total value of $241,867.44. Following the transaction, the insider directly owned 508,648 shares of the company’s stock, valued at $5,584,955.04. The trade was a 4.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Gopal Ajay Madan sold 36,418 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $10.98, for a total value of $399,869.64. Following the completion of the sale, the chief financial officer owned 1,108,860 shares in the company, valued at $12,175,282.80. The trade was a 3.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 173,004 shares of company stock valued at $1,899,283 over the last 90 days. 2.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On RealReal

Several large investors have recently modified their holdings of REAL. BlackRock Inc. acquired a new position in RealReal in the second quarter valued at $134,510,000. AWM Investment Company Inc. bought a new stake in RealReal during the second quarter valued at $21,265,000. Arrowstreet Capital Limited Partnership grew its holdings in RealReal by 58.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock worth $36,765,000 after acquiring an additional 1,489,939 shares during the period. California State Teachers Retirement System grew its holdings in RealReal by 1,050.0% during the 2nd quarter. California State Teachers Retirement System now owns 1,568,836 shares of the company’s stock worth $18,497,000 after acquiring an additional 1,432,414 shares during the period. Finally, Bank of America Corp DE bought a new position in shares of RealReal in the 2nd quarter worth about $12,655,000. 64.73% of the stock is currently owned by institutional investors and hedge funds.

About RealReal

The RealReal, Inc (NASDAQ: REAL) operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal’s business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.