RealReal (NASDAQ:REAL) Shares Up 9.3% – Here’s What Happened

The RealReal, Inc. (NASDAQ:REAL) traded up 9.3% on Thursday. The stock traded as high as $9.73 and last traded at $9.9490. Approximately 372,929 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 3,206,851 shares. The stock had previously closed at $9.10.

Key RealReal News

Here are the key news stories impacting RealReal this week:

• Positive Sentiment: Debt refinancing reduces near-term financial pressure. The RealReal secured a $150 million senior secured term loan and a $25 million revolving credit facility. Proceeds will be used to redeem its 2029 senior secured notes, extending secured debt maturities to 2033 and reducing annual interest expense by approximately $4 million. The RealReal refinancing announcement
• Positive Sentiment: Improved cash-flow outlook supports the refinancing story. Coverage highlighted that The RealReal is entering its third consecutive year of positive free cash flow, with the potential for free cash flow to roughly double next year. Lower interest costs could further support cash generation and deleveraging. Why The RealReal stock rose
• Positive Sentiment: Analyst targets imply substantial upside. Roth Capital reaffirmed its “buy” rating and set a $19 price target, while a broader group of nine analysts reportedly has an average target of $17.75. These targets reflect confidence in the company’s operating and financial improvements. Analyst price targets for The RealReal
• Neutral Sentiment: Trading activity has been elevated. The recent rally occurred on above-average volume, indicating strong investor interest, but heightened activity can also signal increased short-term volatility. Zacks analysis of The RealReal
• Negative Sentiment: Estimate revisions remain a risk. Zacks cautioned that the latest trend in earnings-estimate revisions may not support continued near-term gains, despite the stock’s recent strength.

Analyst Ratings Changes

REAL has been the subject of a number of research analyst reports. BTIG Research reissued a “buy” rating and set a $17.00 target price on shares of RealReal in a research report on Thursday, September 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RealReal in a research report on Thursday. UBS Group boosted their price objective on shares of RealReal from $14.00 to $16.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Finally, Roth Capital reiterated a “buy” rating and set a $19.00 price objective on shares of RealReal in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, RealReal presently has a consensus rating of “Moderate Buy” and a consensus target price of $17.75.

RealReal Stock Performance

The firm has a market capitalization of $1.26 billion, a PE ratio of -9.28 and a beta of 2.81. The firm has a fifty day moving average of $10.07 and a 200 day moving average of $10.57.

RealReal (NASDAQ:REAL) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.01. The firm had revenue of $192.57 million for the quarter, compared to analysts’ expectations of $188.11 million. The company’s quarterly revenue was up 16.6% compared to the same quarter last year. Research analysts forecast that The RealReal, Inc. will post -0.12 earnings per share for the current fiscal year.

Insider Buying and Selling

In other RealReal news, CAO Steve Lo sold 12,559 shares of RealReal stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $10.97, for a total transaction of $137,772.23. Following the sale, the chief accounting officer directly owned 176,910 shares in the company, valued at $1,940,702.70. The trade was a 6.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Gopal Madan sold 36,418 shares of RealReal stock in a transaction on Friday, August 21st. The stock was sold at an average price of $10.98, for a total transaction of $399,869.64. Following the completion of the sale, the chief financial officer owned 1,108,860 shares of the company’s stock, valued at approximately $12,175,282.80. This trade represents a 3.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 173,004 shares of company stock worth $1,899,283 over the last quarter. Company insiders own 2.66% of the company’s stock.

Hedge Funds Weigh In On RealReal

Several large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in RealReal during the second quarter valued at approximately $134,510,000. Arrowstreet Capital Limited Partnership raised its position in shares of RealReal by 58.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,049,042 shares of the company’s stock valued at $36,765,000 after acquiring an additional 1,489,939 shares in the last quarter. AWM Investment Company Inc. bought a new position in RealReal during the second quarter worth $21,265,000. Renaissance Technologies LLC lifted its stake in RealReal by 117.9% during the first quarter. Renaissance Technologies LLC now owns 1,646,200 shares of the company’s stock worth $14,947,000 after purchasing an additional 890,700 shares during the last quarter. Finally, Bank of America Corp DE bought a new position in RealReal during the second quarter worth $12,655,000. Institutional investors own 64.73% of the company’s stock.

RealReal Company Profile

The RealReal, Inc operates an online and physical marketplace for authenticated, pre-owned luxury goods. The company enables individuals to consign and purchase luxury apparel, handbags, shoes, jewelry, watches, fine art and home décor from leading luxury brands.

The RealReal provides sellers with services that include item evaluation, authentication, pricing, merchandising, photography, listing, shipping and customer support. Buyers can shop through the company’s website, mobile application and select retail locations, with products authenticated before being offered for sale.

Founded in 2011 by Julie Wainwright, The RealReal primarily serves customers in the United States.