The stock of RH (NYSE:RH) decreased by -$12.27 on Friday to finish at $338.73, down -3.50 percent. The last five days have seen an average of 687,060 shares of common stock traded. 21 times new highs were reached in the current year, with a gain of $71.54. The average number of shares traded over the last 20 days was 607,990, while the average volume over the last 50 days totaled 783,202.
RH stock dropped -11.14% since last month. On 08/22/23, the company’s shares reached a one-month low of $331.84. The stock touched a high of $406.38 on 08/03/23, after rallying from a low of $227.00 in 52 weeks. The price of RH stock has risen by 26.77% or $71.54 this year, reaching a new high 21 times. Still, the stock price is down -16.65% from the 52-week high.
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Insider Transactions
RH stock investors should be aware that RH (RH) stock had its last reported insider trading activity 62 days ago on Jun 27. On Jun 27, Director DEMILIO MARK S sold 2,000 shares at $305.24 each. This transaction resulted in the insider making $610,473. On Jun 27, Lee Edward T sold 1,400 shares at a price of US$300.00. After the transaction, the insider now owns 2,624 shares. Director Belling Keith had earlier sold 1,000 shares on Jun 14 for $279.99 a share. The transaction was completed for $279,986.
Valuation Metrics
RH (RH) has a trailing price-to-earnings (P/E) ratio of 23.49. Beta for the stock is 2.18. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.30, the price-to-book (PB) ratio of 8.90, and the price-to-cash flow ratio of 43.98.
Financial Health
For the three months ended April 29, RH’s quick ratio was 2.00, while its current ratio was 2.90, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 3.70, and the total debt to equity ratio is 3.76. As far as profitability goes, gross margin for the trailing twelve months is 49.30% percent. RH’s EBITDA margin for the year ended April 29 was 25.90%, whereas its operating margin stood at 17.60% for the same period. Based on annual data, it had gross profit of $1.81 billion and revenue of $3.59 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. RH’s return on assets (ROA) during the last 12 months has been 6.60%. There was a 16.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 35.70%.
Earnings Surprise
According to RH’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $739.16 million, while revenues fell by -29.51% to $940.84 million. It was predicted that RH’s quarterly earnings would be $2.21, but it ended up being $2.09, beating the consensus by 5.70%. EBITDA was $146.88 million for the quarter. At the end of RH’s most recent quarter ended April 29, its liabilities totaled 4.48 billion, while its total debt was $3.74 billion. Equity owned by shareholders amounts to $22.05 million.
Technical Picture
Here’s a quick look at RH’s (RH) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 35.08%, suggesting the stock is Neutral, with a 45.71% historical volatility rate.
The stochastic %K and %D were 23.28% and 19.10% respectively, while the average true range (ATR) was 13.71. Based on the 14-day stochastic reading of 9.68%, the RSI (14) reading is 39.66%. On the 9-day MACD Oscillator, the stock is at -3.69, and the 14-day reading is at -15.60.
Analyst Ratings
RH (NYSE: RH) was downgraded by Loop Capital to a a Hold rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned RH (RH) an Hold rating. RH is a stock that is recommended for selling by 1 brokerage firm, while 12 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 6 others recommend it as a buy.
What is RH’s price target for the next 12 months?
The current consensus forecast for the stock is between $176.00 and $460.00, with a median target price of $300.00. In analyzing these forecasts, the average price target given by analysts for RH (RH) is $321.00.
