RH (NYSE:RH) Shares Down 6% – Here’s What Happened

RH (NYSE:RH) shares traded down 6% during mid-day trading on Tuesday . The stock traded as low as $206.31 and last traded at $206.0320. 191,410 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 1,094,226 shares. The stock had previously closed at $219.09.

Trending Headlines about RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Revenue growth and near-term technical support — RH reported revenue up ~8.9% year-over-year in its most recent quarter and the 50‑day moving average ($186.87) sits below the stock price, which can provide short-term technical support for the shares.
• Neutral Sentiment: No direct RH items in the provided articles — the items in the feed cover other companies and macro events, so today’s move appears driven by RH’s own fundamentals and market sentiment rather than fresh company news. For RH reference data see the MarketBeat summary. MarketBeat RH page
• Negative Sentiment: Earnings miss and weak profitability — RH missed quarterly EPS (reported $1.71 vs. $2.13 est.), posted a thin net margin (3.22%) and a large negative return on equity (-161.72%), which likely weighs on investor confidence.
• Negative Sentiment: Balance-sheet and liquidity concerns — very high reported debt-to-equity (~944.4), a low quick ratio (0.26) and modest current ratio (1.19) increase risk sensitivity to sales softness or higher rates.
• Negative Sentiment: Valuation and volatility — RH trades at a high P/E (~36.7) with a wide 12‑month range ($123.03–$436.99) and a beta ~2.1, making the stock sensitive to macro moves and earnings beats/misses; today’s volume is below average, suggesting weaker conviction on the selloff.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. William Blair downgraded RH from an “outperform” rating to a “market perform” rating in a research report on Thursday, October 2nd. UBS Group reaffirmed a “neutral” rating on shares of RH in a research report on Friday, December 12th. Zelman & Associates reaffirmed an “outperform” rating on shares of RH in a report on Thursday. The Goldman Sachs Group decreased their target price on shares of RH from $195.00 to $144.00 and set a “sell” rating on the stock in a report on Monday, December 15th. Finally, Bank of America lowered their price target on RH from $200.00 to $170.00 and set an “underperform” rating for the company in a report on Friday, December 12th. Eight equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $231.19.

RH Price Performance

The business has a 50-day moving average price of $186.87 and a 200 day moving average price of $196.53. The stock has a market cap of $3.82 billion, a PE ratio of 36.74, a PEG ratio of 1.53 and a beta of 2.09. The company has a current ratio of 1.19, a quick ratio of 0.26 and a debt-to-equity ratio of 944.39.

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

Insider Activity at RH

In related news, Director Mark S. Demilio sold 2,254 shares of RH stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total value of $495,880.00. Following the completion of the sale, the director directly owned 19,962 shares in the company, valued at approximately $4,391,640. This trade represents a 10.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders have sold a total of 5,154 shares of company stock worth $1,100,148 in the last 90 days. Corporate insiders own 27.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. United Services Automobile Association purchased a new stake in shares of RH during the 1st quarter worth $231,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in RH by 6.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 38,622 shares of the company’s stock valued at $9,053,000 after purchasing an additional 2,244 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new position in RH during the second quarter valued at approximately $349,000. Farther Finance Advisors LLC increased its holdings in shares of RH by 67.8% during the 2nd quarter. Farther Finance Advisors LLC now owns 151 shares of the company’s stock valued at $29,000 after purchasing an additional 61 shares in the last quarter. Finally, Public Employees Retirement System of Ohio boosted its stake in shares of RH by 3.0% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 5,041 shares of the company’s stock worth $953,000 after acquiring an additional 146 shares in the last quarter. 90.17% of the stock is currently owned by institutional investors.

RH Company Profile

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.