RH (NYSE:RH) Trading 21% Higher - Still a Buy?

Shares of RH (NYSE:RH - Get Free Report) were up 21% during mid-day trading on Wednesday . The company traded as high as $168.69 and last traded at $180.76. Approximately 2,566,071 shares were traded during trading, an increase of 191% from the average daily volume of 880,477 shares. The stock had previously closed at $149.36.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on RH shares. JPMorgan Chase & Co. reduced their price target on shares of RH from $510.00 to $250.00 and set an "overweight" rating for the company in a report on Monday. UBS Group decreased their target price on RH from $250.00 to $235.00 and set a "neutral" rating on the stock in a research report on Thursday, April 3rd. StockNews.com cut RH from a "hold" rating to a "sell" rating in a report on Wednesday, March 19th. Citigroup reissued a "neutral" rating and set a $200.00 price objective (down previously from $437.00) on shares of RH in a report on Thursday, April 3rd. Finally, Stifel Nicolaus cut their target price on RH from $450.00 to $390.00 and set a "buy" rating for the company in a research note on Monday, April 7th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $278.44.

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RH Stock Down 0.8 %

The stock has a fifty day moving average of $277.36 and a 200-day moving average of $339.84. The firm has a market capitalization of $3.06 billion, a P/E ratio of 46.91, a PEG ratio of 2.65 and a beta of 2.44.

RH (NYSE:RH - Get Free Report) last announced its earnings results on Wednesday, April 2nd. The company reported $1.58 earnings per share for the quarter, missing analysts' consensus estimates of $1.91 by ($0.33). RH had a negative return on equity of 35.72% and a net margin of 2.25%. The company had revenue of $812.41 million during the quarter, compared to the consensus estimate of $828.21 million. During the same period in the prior year, the firm posted $0.72 earnings per share. The company's revenue was up 10.0% on a year-over-year basis. As a group, analysts forecast that RH will post 4.39 EPS for the current fiscal year.

Insider Activity

In other news, insider Eri Chaya sold 25,000 shares of the stock in a transaction on Tuesday, January 14th. The stock was sold at an average price of $426.41, for a total value of $10,660,250.00. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Christina Hargarten sold 5,280 shares of RH stock in a transaction on Friday, January 17th. The stock was sold at an average price of $447.20, for a total value of $2,361,216.00. Following the sale, the chief accounting officer now directly owns 484 shares of the company's stock, valued at approximately $216,444.80. This trade represents a 91.60 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 55,880 shares of company stock valued at $24,550,754 over the last 90 days. 28.10% of the stock is owned by company insiders.

Institutional Trading of RH

A number of large investors have recently made changes to their positions in the company. Versant Capital Management Inc lifted its position in RH by 7,000.0% in the 4th quarter. Versant Capital Management Inc now owns 71 shares of the company's stock valued at $28,000 after acquiring an additional 70 shares in the last quarter. UMB Bank n.a. boosted its stake in shares of RH by 125.8% during the 4th quarter. UMB Bank n.a. now owns 70 shares of the company's stock worth $28,000 after acquiring an additional 39 shares during the period. GAMMA Investing LLC raised its position in shares of RH by 533.3% in the fourth quarter. GAMMA Investing LLC now owns 76 shares of the company's stock valued at $30,000 after purchasing an additional 64 shares during the period. Sunbelt Securities Inc. raised its holdings in RH by 690.0% in the 4th quarter. Sunbelt Securities Inc. now owns 79 shares of the company's stock valued at $31,000 after acquiring an additional 69 shares during the period. Finally, Rakuten Securities Inc. increased its stake in shares of RH by 180.0% during the fourth quarter. Rakuten Securities Inc. now owns 112 shares of the company's stock worth $44,000 after purchasing an additional 72 shares during the period. Institutional investors own 90.17% of the company's stock.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.