RH (NYSE:RH) Shares Gap Up – Time to Buy?

RH (NYSE:RH) gapped up before the market opened on Friday . The stock had previously closed at $179.15, but opened at $191.55. RH shares last traded at $191.0010, with a volume of 204,365 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley cut their price target on shares of RH from $300.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday, December 19th. Robert W. Baird cut their target price on shares of RH from $235.00 to $180.00 and set a “neutral” rating on the stock in a research note on Friday, December 12th. Guggenheim restated a “buy” rating and issued a $300.00 target price on shares of RH in a report on Friday, September 12th. The Goldman Sachs Group lowered their price target on RH from $195.00 to $144.00 and set a “sell” rating on the stock in a report on Monday, December 15th. Finally, KeyCorp reissued a “sector weight” rating on shares of RH in a research report on Friday, December 12th. Nine research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, RH currently has a consensus rating of “Hold” and an average price target of $225.56.

RH Trading Up 5.5%

The company has a quick ratio of 0.26, a current ratio of 1.19 and a debt-to-equity ratio of 944.39. The business has a 50-day moving average of $165.65 and a 200-day moving average of $193.61. The stock has a market cap of $3.55 billion, a price-to-earnings ratio of 34.07, a PEG ratio of 1.34 and a beta of 2.09.

RH (NYSE:RH) last announced its quarterly earnings results on Thursday, December 11th. The company reported $1.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.13 by ($0.42). RH had a net margin of 3.22% and a negative return on equity of 161.72%. The firm had revenue of $883.81 million for the quarter, compared to analyst estimates of $883.65 million. During the same quarter in the prior year, the firm earned $2.48 earnings per share. The firm’s quarterly revenue was up 8.9% compared to the same quarter last year. As a group, research analysts forecast that RH will post 4.39 earnings per share for the current year.

Institutional Investors Weigh In On RH

Several institutional investors and hedge funds have recently modified their holdings of RH. Durable Capital Partners LP increased its position in RH by 125.1% during the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after buying an additional 359,101 shares during the last quarter. Westfield Capital Management Co. LP acquired a new stake in shares of RH in the third quarter worth about $67,632,000. Senvest Management LLC boosted its stake in shares of RH by 54.6% during the 2nd quarter. Senvest Management LLC now owns 733,894 shares of the company’s stock worth $138,713,000 after acquiring an additional 259,200 shares in the last quarter. Alliancebernstein L.P. increased its holdings in shares of RH by 66.1% during the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock valued at $116,546,000 after acquiring an additional 228,229 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its holdings in shares of RH by 388.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 265,271 shares of the company’s stock valued at $53,893,000 after acquiring an additional 210,991 shares during the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.