RH (NYSE:RH) Stock Rating Lowered by Wall Street Zen

RH (NYSE:RH) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday.

A number of other research analysts have also weighed in on the company. Zacks Research upgraded RH from a “strong sell” rating to a “hold” rating in a research report on Friday, February 13th. KeyCorp restated a “sector weight” rating on shares of RH in a research report on Friday, December 12th. Morgan Stanley lowered their price target on shares of RH from $275.00 to $240.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 1st. Bank of America cut their price target on shares of RH from $200.00 to $170.00 and set an “underperform” rating for the company in a report on Friday, December 12th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of RH from $275.00 to $225.00 and set an “overweight” rating for the company in a research note on Friday, December 19th. Seven investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, RH currently has an average rating of “Hold” and a consensus price target of $180.20.

RH Price Performance

Shares of RH opened at $113.49 on Friday. The company has a current ratio of 1.19, a quick ratio of 0.26 and a debt-to-equity ratio of 51.28. The stock’s 50 day moving average is $167.84 and its two-hundred day moving average is $178.01. RH has a twelve month low of $106.30 and a twelve month high of $257.00. The firm has a market capitalization of $2.14 billion, a PE ratio of 17.99, a P/E/G ratio of 1.22 and a beta of 2.10.

RH (NYSE:RH) last issued its earnings results on Tuesday, March 31st. The company reported $1.53 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). The business had revenue of $842.62 million for the quarter, compared to analysts’ expectations of $873.48 million. RH had a negative return on equity of 567.82% and a net margin of 3.63%.The business’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the company posted $1.58 earnings per share. Research analysts anticipate that RH will post 4.39 earnings per share for the current year.

Insider Activity

In related news, insider Eri Chaya sold 11,000 shares of the stock in a transaction dated Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total value of $1,517,120.00. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Mark S. Demilio sold 2,254 shares of the firm’s stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total transaction of $495,880.00. Following the transaction, the director owned 19,962 shares of the company’s stock, valued at $4,391,640. This trade represents a 10.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 29,254 shares of company stock worth $4,306,520 over the last quarter. Insiders own 27.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Arizona State Retirement System lifted its stake in RH by 1.4% in the 3rd quarter. Arizona State Retirement System now owns 4,434 shares of the company’s stock valued at $901,000 after buying an additional 62 shares in the last quarter. Steward Partners Investment Advisory LLC raised its holdings in shares of RH by 12.0% in the second quarter. Steward Partners Investment Advisory LLC now owns 605 shares of the company’s stock worth $114,000 after acquiring an additional 65 shares during the last quarter. Davidson Kahn Capital Management LLC lifted its position in shares of RH by 0.5% in the third quarter. Davidson Kahn Capital Management LLC now owns 12,437 shares of the company’s stock valued at $2,531,000 after acquiring an additional 65 shares in the last quarter. Huntington National Bank boosted its stake in shares of RH by 87.8% during the third quarter. Huntington National Bank now owns 139 shares of the company’s stock valued at $28,000 after acquiring an additional 65 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its stake in shares of RH by 45.0% during the fourth quarter. Farther Finance Advisors LLC now owns 248 shares of the company’s stock valued at $44,000 after acquiring an additional 77 shares during the last quarter. 90.17% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting RH

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some large brokers remain constructive or keep overweight/buy ratings despite lower targets, which supports short‑term buying interest and stabilizes the stock. Read More.
• Positive Sentiment: Value/“buy‑the‑dip” commentary argues the pullback may present a long‑term entry given RH’s brand and growth plan, attracting opportunistic investors. Read More.
• Neutral Sentiment: Citigroup cut its price target from $183 to $150 and set a neutral rating — reduces upside expectations but is not a sell call, which can temper further liquidation. Read More.
• Neutral Sentiment: RH reiterated its long‑term expansion strategy (global gallery openings, higher pre‑opening costs). Management frames near‑term margin pressure as deliberate investment for growth — explains elevated spending but increases execution risk. Read More.
• Negative Sentiment: Q4 miss drove the sell‑off: adjusted EPS $1.53 vs. ~$2.21 consensus and revenue $842.6M vs. ~$873.5M; management cited tariff/resourcing and weather headwinds. That earnings miss triggered analyst cuts and selling pressure. Read More.
• Negative Sentiment: Cautious FY2026 outlook: management guided modest revenue growth and lower adjusted EBITDA margins as it ramps global expansion and funds pre‑openings — implies near‑term margin compression and slower cash generation. Read More.
• Negative Sentiment: Analyst downgrades and lower targets from multiple houses (BNP Paribas Exane, Wells Fargo and others) amplify downside pressure and reduce conviction among institutional holders. Read More.
• Negative Sentiment: Insider selling: director/insider Eri Chaya sold multiple blocks (11,000 shares on Mar 31 plus earlier sales), which investors often view as a negative signal; a shareholder law firm has also announced an investigation that can add short‑term uncertainty. Read More. Read More.
• Negative Sentiment: Macro/industry headwinds: RH’s CEO warned of a worsening housing market and declining mortgage applications, which could weigh on demand for high‑end home furnishings. Read More.

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.