Morgan Stanley Issues Pessimistic Forecast for RH (NYSE:RH) Stock Price

RH (NYSE:RH) had its target price lowered by analysts at Morgan Stanley from $530.00 to $300.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s price target would suggest a potential upside of 20.35% from the stock’s previous close.

A number of other research firms have also weighed in on RH. Loop Capital boosted their price objective on shares of RH from $320.00 to $450.00 and gave the company a “hold” rating in a research report on Monday, December 16th. UBS Group cut their price target on RH from $440.00 to $250.00 and set a “neutral” rating for the company in a report on Friday, March 21st. Guggenheim decreased their price objective on RH from $550.00 to $500.00 and set a “buy” rating on the stock in a report on Wednesday, March 26th. Bank of America reduced their target price on RH from $510.00 to $410.00 and set a “buy” rating on the stock in a research report on Wednesday, March 26th. Finally, Wells Fargo & Company lowered their price target on RH from $500.00 to $375.00 and set an “overweight” rating for the company in a report on Tuesday, March 18th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $350.63.

RH Stock Performance

RH stock opened at $249.28 on Thursday. The stock’s 50 day moving average price is $323.21 and its 200 day moving average price is $350.91. The firm has a market cap of $4.64 billion, a P/E ratio of 71.63, a PEG ratio of 2.65 and a beta of 2.50. RH has a 1 year low of $166.34 and a 1 year high of $457.26.

RH (NYSE:RH) last posted its quarterly earnings data on Wednesday, April 2nd. The company reported $1.58 EPS for the quarter, missing analysts’ consensus estimates of $1.91 by ($0.33). The company had revenue of $812.41 million for the quarter, compared to analyst estimates of $828.21 million. RH had a net margin of 2.25% and a negative return on equity of 35.72%. The firm’s revenue was up 10.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.72 EPS. On average, research analysts predict that RH will post 4.39 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Edward T. Lee sold 600 shares of RH stock in a transaction that occurred on Friday, January 17th. The shares were sold at an average price of $446.73, for a total transaction of $268,038.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Christina Hargarten sold 5,280 shares of the company’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $447.20, for a total transaction of $2,361,216.00. Following the completion of the transaction, the chief accounting officer now owns 484 shares of the company’s stock, valued at $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 a total of 66,380 shares of company stock worth $28,922,379 over the last quarter. 28.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On RH

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RH. PNC Financial Services Group Inc. grew its stake in shares of RH by 0.8% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,872 shares of the company’s stock valued at $1,524,000 after acquiring an additional 29 shares in the last quarter. Steward Partners Investment Advisory LLC grew its stake in RH by 6.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 549 shares of the company’s stock valued at $216,000 after purchasing an additional 31 shares in the last quarter. Insight Advisors LLC PA increased its holdings in RH by 2.3% during the 4th quarter. Insight Advisors LLC PA now owns 1,449 shares of the company’s stock worth $571,000 after purchasing an additional 33 shares during the last quarter. US Bancorp DE raised its position in shares of RH by 14.6% in the 4th quarter. US Bancorp DE now owns 283 shares of the company’s stock valued at $111,000 after purchasing an additional 36 shares in the last quarter. Finally, UMB Bank n.a. raised its position in shares of RH by 125.8% in the 4th quarter. UMB Bank n.a. now owns 70 shares of the company’s stock valued at $28,000 after purchasing an additional 39 shares in the last quarter. Hedge funds and other 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.