RH (NYSE:RH) Stock Price Breaks Below 200-Day Moving Average – What’s Next?

RH (NYSE:RH)’s stock price crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $146.70 and traded as low as $115.66. RH shares last traded at $117.4730, with a volume of 860,814 shares changing hands.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Neutral Sentiment: RH’s senior vice president of interior design, Michael Brown, left the luxury home furnishings retailer to become chief creative officer at Vesta Home. Brown had led RH’s global interior design efforts, making the transition a potential execution and brand-development consideration, although no operational impact was announced. RH creative chief Michael Brown leaves to join Vesta Home
• Negative Sentiment: RH stock broke below its 200-day moving average, a widely followed technical support level. The breakdown can encourage additional selling from momentum-focused investors and signals that the stock’s longer-term trend has weakened. RH Stock Breaks Below Two Hundred Day Moving Average

Wall Street Analyst Weigh In

Several research analysts have commented on RH shares. The Goldman Sachs Group raised RH from a “sell” rating to a “neutral” rating and lifted their price target for the stock from $86.00 to $155.00 in a research report on Wednesday, July 8th. Stifel Nicolaus reduced their price objective on RH from $130.00 to $120.00 and set a “hold” rating for the company in a research report on Monday, September 28th. JPMorgan Chase & Co. lowered their price objective on shares of RH from $212.00 to $190.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Wells Fargo & Company dropped their target price on shares of RH from $225.00 to $175.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. Finally, Citigroup upped their target price on shares of RH from $150.00 to $166.00 and gave the company a “neutral” rating in a research note on Monday, June 15th. Seven investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $164.86.

RH Stock Down 1.7%

The stock has a market capitalization of $2.18 billion, a price-to-earnings ratio of 20.49, a price-to-earnings-growth ratio of 2.22 and a beta of 1.91. The firm has a 50 day simple moving average of $149.10 and a 200-day simple moving average of $146.57. The company has a debt-to-equity ratio of 26.57, a current ratio of 1.12 and a quick ratio of 0.37.

RH (NYSE:RH) last issued its earnings results on Thursday, September 10th. The company reported $2.70 EPS for the quarter, beating the consensus estimate of $0.38 by $2.32. RH had a net margin of 3.23% and a return on equity of 132.79%. The company had revenue of $922.15 million for the quarter, compared to the consensus estimate of $915.09 million. During the same quarter in the previous year, the company earned $2.93 EPS. The firm’s revenue for the quarter was up 2.6% compared to the same quarter last year. On average, sell-side analysts forecast that RH will post 5.3 EPS for the current fiscal year.

Insider Buying and Selling

In other RH news, Director Mark Demilio sold 2,445 shares of the business’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $168.44, for a total value of $411,835.80. Following the transaction, the director directly owned 25,680 shares in the company, valued at $4,325,539.20. The trade was a 8.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 26.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of RH. Norges Bank acquired a new stake in shares of RH in the 4th quarter valued at $28,092,000. Engineers Gate Manager LP raised its position in shares of RH by 63.8% during the second quarter. Engineers Gate Manager LP now owns 19,337 shares of the company’s stock worth $3,185,000 after acquiring an additional 7,531 shares during the last quarter. Deutsche Bank AG lifted its stake in shares of RH by 526.0% during the second quarter. Deutsche Bank AG now owns 19,019 shares of the company’s stock valued at $3,133,000 after acquiring an additional 15,981 shares during the period. Oak Thistle LLC acquired a new position in shares of RH during the second quarter valued at $2,033,000. Finally, Quantinno Capital Management LP boosted its holdings in RH by 138.1% in the first quarter. Quantinno Capital Management LP now owns 24,999 shares of the company’s stock valued at $3,495,000 after acquiring an additional 14,500 shares during the last quarter. Institutional investors own 90.17% of the company’s stock.

About RH

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company that curates and sells products for residential and hospitality environments. Its offerings include furniture, lighting, textiles, rugs, bath and kitchen fixtures, outdoor furnishings, décor and related design products.

The company markets its products through a multichannel platform that includes large-format RH Galleries, outlet locations, source books, websites and trade services for professional designers.