RealReal’s (REAL) Buy Rating Reaffirmed at Roth Capital

RealReal (NASDAQ:REAL)‘s stock had its “buy” rating reissued by equities research analysts at Roth Capital in a note issued to investors on Friday, Benzinga reports. They currently have a $19.00 price target on the stock. Roth Capital’s price objective suggests a potential upside of 81.75% from the company’s current price.

A number of other equities research analysts have also weighed in on the stock. BTIG Research restated a “buy” rating and issued a $17.00 price objective on shares of RealReal in a report on Thursday, September 17th. Weiss Ratings reiterated a “sell (d-)” rating on shares of RealReal in a research note on Thursday. Finally, UBS Group raised their price target on shares of RealReal from $14.00 to $16.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $17.75.

RealReal Stock Down 0.8%

RealReal stock traded down $0.09 during midday trading on Friday, hitting $10.45. 3,569,593 shares of the stock were exchanged, compared to its average volume of 3,236,254. RealReal has a 52-week low of $8.05 and a 52-week high of $17.39. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of -9.30 and a beta of 2.81. The business’s 50-day moving average price is $10.10 and its 200-day moving average price is $10.57.

RealReal (NASDAQ:REAL) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.01. The firm had revenue of $192.57 million for the quarter, compared to analysts’ expectations of $188.11 million. The business’s revenue was up 16.6% compared to the same quarter last year. On average, sell-side analysts predict that RealReal will post -0.12 earnings per share for the current fiscal year.

Insider Activity

In other news, CAO Steve Lo sold 12,559 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $10.97, for a total value of $137,772.23. Following the completion of the sale, the chief accounting officer directly owned 176,910 shares of the company’s stock, valued at $1,940,702.70. This trade represents a 6.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Gopal Madan sold 36,418 shares of the firm’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 directly owned 1,108,860 shares of the company’s stock, valued at approximately $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 have sold a total of 173,004 shares of company stock worth $1,899,283 in the last quarter. Corporate insiders own 2.66% of the company’s stock.

Institutional Trading of RealReal

Several hedge funds have recently added to or reduced their stakes in REAL. BlackRock Inc. purchased a new position in RealReal in the second quarter worth about $134,510,000. AWM Investment Company Inc. acquired a new position in RealReal during the 2nd quarter valued at about $21,265,000. Arrowstreet Capital Limited Partnership boosted its stake in RealReal by 58.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock valued at $36,765,000 after purchasing an additional 1,489,939 shares during the period. Bank of America Corp DE acquired a new position in RealReal during the 2nd quarter valued at about $12,655,000. Finally, Renaissance Technologies LLC boosted its stake in RealReal by 117.9% during the 1st quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company’s stock valued at $14,947,000 after purchasing an additional 890,700 shares during the period. 64.73% of the stock is owned by institutional investors and hedge funds.

RealReal News Roundup

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Debt refinancing reduces financial pressure: The RealReal secured a new $150 million senior secured term loan and a $25 million revolving credit facility. Proceeds will refinance its 2029 senior secured notes, extend the debt maturity to 2033 and reduce annual interest expense by approximately $4 million. The company also outlined a medium-term leverage target. The RealReal refinancing announcement
• Positive Sentiment: Cash-flow outlook is improving: Coverage highlighted that the luxury resale marketplace is entering its third consecutive year of positive free cash flow, with the possibility of significantly increasing free cash flow next year. Lower interest costs could further support that outlook. Why The RealReal stock rose
• Positive Sentiment: Analyst support remains strong: Roth Capital reaffirmed its “buy” rating and set a $19 price target, implying substantial upside from recent trading levels. A separate report said nine analysts have an average target of approximately $17.75. Analyst price targets for The RealReal
• Neutral Sentiment: Upcoming earnings may be the next catalyst: The RealReal will report third-quarter 2026 results after the market closes on October 29, followed by a conference call. Investors will look for evidence that revenue growth, profitability and free cash flow are continuing to improve. The RealReal third-quarter earnings announcement
• Negative Sentiment: Estimate trends could limit additional gains: Zacks noted that recent earnings-estimate revisions may not support continued near-term momentum, despite the stock’s strong move on above-average volume. Investors may therefore remain sensitive to guidance and the upcoming quarterly results. Zacks analysis of The RealReal

About RealReal

The RealReal, Inc operates an online and physical marketplace for authenticated, pre-owned luxury goods. The company enables individuals to consign and purchase luxury apparel, handbags, shoes, jewelry, watches, fine art and home décor from leading luxury brands.

The RealReal provides sellers with services that include item evaluation, authentication, pricing, merchandising, photography, listing, shipping and customer support. Buyers can shop through the company’s website, mobile application and select retail locations, with products authenticated before being offered for sale.

Founded in 2011 by Julie Wainwright, The RealReal primarily serves customers in the United States.