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

RealReal (NASDAQ:REAL)‘s stock had its “buy” rating restated by equities researchers at Roth Capital in a note issued to investors on Friday, Benzinga reports. They currently have a $19.00 target price on the stock. Roth Capital’s target price points to a potential upside of 79.50% from the stock’s previous close.

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

RealReal Price Performance

Shares of REAL traded up $0.04 during mid-day trading on Friday, reaching $10.59. The company had a trading volume of 2,566,687 shares, compared to its average volume of 3,231,055. RealReal has a twelve month low of $8.05 and a twelve month high of $17.39. The company’s 50-day moving average is $10.10 and its 200-day moving average is $10.57. The company has a market capitalization of $1.29 billion, a P/E ratio of -9.46 and a beta of 2.81.

RealReal (NASDAQ:REAL) last posted 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 the consensus estimate of $188.11 million. The business’s revenue was up 16.6% on a year-over-year basis. As a group, equities analysts expect that RealReal will post -0.12 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Steve Lo sold 12,559 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $10.97, for a total transaction of $137,772.23. Following the transaction, the chief accounting officer owned 176,910 shares in the company, valued at $1,940,702.70. This represents a 6.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Luke Friang sold 22,028 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $10.98, for a total transaction of $241,867.44. Following the sale, the insider directly owned 508,648 shares in the company, valued at approximately $5,584,955.04. This represents a 4.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 173,004 shares of company stock valued at $1,899,283 over the last three months. Company insiders own 2.66% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in shares of RealReal during the 2nd quarter worth approximately $134,510,000. Arrowstreet Capital Limited Partnership boosted its holdings in RealReal by 58.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock worth $36,765,000 after buying an additional 1,489,939 shares during the last quarter. AWM Investment Company Inc. bought a new position in RealReal during the second quarter worth about $21,265,000. Renaissance Technologies LLC raised its position in shares of RealReal by 117.9% in the 1st quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company’s stock valued at $14,947,000 after acquiring an additional 890,700 shares during the period. Finally, Bank of America Corp DE acquired a new stake in shares of RealReal in the 2nd quarter valued at approximately $12,655,000. Institutional investors own 64.73% of the company’s stock.

More RealReal News

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Debt refinancing improves financial flexibility: The RealReal secured a new $150 million senior secured term loan and a $25 million revolving credit facility. Proceeds will be used to redeem the company’s 2029 senior secured notes, extending the secured-debt maturity to 2033 and potentially reducing interest expense by approximately $4 million annually. The RealReal refinancing announcement
• Positive Sentiment: Cash flow outlook adds support: Coverage highlighted that The RealReal is entering its third consecutive year of positive free cash flow, with the possibility of roughly doubling free cash flow next year. Lower interest costs could further support cash generation and deleveraging. Why The RealReal stock popped
• Positive Sentiment: Analyst targets imply upside: Nine analysts reportedly set a consensus target of $17.75 for REAL, well above the recent trading level, indicating continued confidence in the company’s longer-term growth and turnaround prospects. Analyst target coverage
• Neutral Sentiment: Third-quarter results are approaching: The RealReal plans to report results for the quarter ended September 30 after the market closes on October 29, followed by a conference call. Investors may remain focused on revenue growth, profitability, free cash flow and leverage. The RealReal third-quarter earnings date
• Negative Sentiment: Estimate trends present a risk: Zacks noted that the latest direction of earnings-estimate revisions may not support continued near-term momentum, potentially limiting further upside after the recent rally. 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.