RealReal (NASDAQ:REAL) Stock Price Down 13.2% Following Weak Earnings

The RealReal, Inc. (NASDAQ:REAL - Get Free Report)'s stock price was down 13.2% on Friday following a dissappointing earnings announcement. The stock traded as low as $6.99 and last traded at $6.91. Approximately 1,440,690 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 3,137,537 shares. The stock had previously closed at $7.96.

The company reported ($0.62) earnings per share for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.52). The business had revenue of $164.00 million during the quarter, compared to analyst estimates of $162.69 million.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. UBS Group raised their price objective on shares of RealReal from $3.00 to $3.25 and gave the company a "neutral" rating in a research report on Tuesday, November 5th. Northland Securities lifted their price target on RealReal from $6.50 to $12.50 and gave the stock an "outperform" rating in a research note on Tuesday, December 17th. Finally, Wells Fargo & Company upgraded RealReal from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $4.00 to $15.00 in a research report on Monday, December 9th. Two investment analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $7.38.

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Insider Buying and Selling at RealReal

In other news, CEO John E. Koryl sold 396,478 shares of the stock in a transaction that occurred on Monday, January 6th. The stock was sold at an average price of $9.61, for a total transaction of $3,810,153.58. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Steve Ming Lo sold 96,666 shares of the firm's stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $6.10, for a total transaction of $589,662.60. Following the completion of the transaction, the chief accounting officer now owns 391,525 shares in the company, valued at $2,388,302.50. This represents a 19.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 751,427 shares of company stock worth $6,181,969 over the last three months. Company insiders own 9.78% of the company's stock.

Institutional Investors Weigh In On RealReal

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Anchorage Capital Advisors L.P. bought a new position in shares of RealReal during the third quarter valued at about $10,675,000. Voloridge Investment Management LLC bought a new position in RealReal during the 4th quarter valued at approximately $17,138,000. Norges Bank purchased a new stake in RealReal in the 4th quarter worth approximately $11,989,000. Driehaus Capital Management LLC purchased a new stake in RealReal in the 4th quarter worth approximately $10,370,000. Finally, Invesco Ltd. grew its position in shares of RealReal by 413.4% in the 4th quarter. Invesco Ltd. now owns 1,053,911 shares of the company's stock worth $11,519,000 after buying an additional 848,640 shares during the last quarter. 64.73% of the stock is currently owned by institutional investors.

RealReal Price Performance

The stock has a market capitalization of $739.32 million, a PE ratio of -5.22 and a beta of 2.83. The company has a 50 day moving average price of $9.03 and a 200-day moving average price of $5.63.

RealReal Company Profile

The RealReal, Inc operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.