Key Points
- RH director Mark Demilio sold 400 shares on Dec. 31 at an average price of $180.17 for $72,068, trimming his stake by about 1.66% to 23,716 shares, per an SEC filing.
- Stock rallied ~7.9% after the White House delayed a planned furniture tariff increase, giving RH a one-year reprieve on import cost pressure.
- Near-term risks remain: RH missed quarterly EPS ($1.71 vs. $2.13 est.), carries very high leverage (debt-to-equity 944.39), and is facing an investigation by Robbins Geller, creating potential earnings and litigation headwinds.
RH (NYSE:RH - Get Free Report) Director Mark Demilio sold 400 shares of RH stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $180.17, for a total transaction of $72,068.00. Following the completion of the transaction, the director directly owned 23,716 shares in the company, valued at approximately $4,272,911.72. The trade was a 1.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.
RH Stock Up 7.9%
NYSE:RH opened at $193.39 on Friday. The stock has a 50-day simple moving average of $165.90 and a 200 day simple moving average of $193.64. RH has a 52-week low of $123.03 and a 52-week high of $455.84. The company has a market cap of $3.63 billion, a PE ratio of 34.91, a PEG ratio of 1.34 and a beta of 2.09. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19.
RH (NYSE:RH - Get Free Report) last issued 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 business had revenue of $883.81 million during the quarter, compared to analyst estimates of $883.65 million. During the same quarter in the previous year, the firm posted $2.48 earnings per share. The firm's quarterly revenue was up 8.9% on a year-over-year basis. On average, sell-side analysts expect that RH will post 4.39 EPS for the current fiscal year.
Analyst Upgrades and Downgrades
Several equities analysts have commented on the stock. Bank of America decreased their target price on shares of RH from $200.00 to $170.00 and set an "underperform" rating on the stock in a report on Friday, December 12th. UBS Group reissued a "neutral" rating on shares of RH in a research note on Friday, December 12th. Morgan Stanley decreased their price objective on shares of RH from $300.00 to $250.00 and set an "overweight" rating for the company in a research report on Friday, December 19th. Guggenheim reiterated a "buy" rating and set a $300.00 target price on shares of RH in a research report on Friday, September 12th. Finally, Robert W. Baird decreased their price objective on RH from $235.00 to $180.00 and set a "neutral" rating for the company in a report on Friday, December 12th. Nine research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $225.56.
Read Our Latest Report on RH
RH News Roundup
Here are the key news stories impacting RH this week:
- Positive Sentiment: White House delays tariff increase on imported furniture — gives RH a one-year reprieve and removes an imminent cost/headwind for imported products; this policy move is the main driver of today’s rally. CNBC: RH, Wayfair shares rise after Trump delays furniture tariffs again
- Neutral Sentiment: Director Mark S. Demilio disclosed two small open-market sales (400 and 500 shares on Dec. 31 and Dec. 30). These reduce his stake modestly but leave significant ownership intact; likely routine liquidity rather than a clear negative signal. SEC filing
- Neutral Sentiment: Technical/valuation context — RH is trading above its 50-day moving average and near its 200-day average, with heavy intraday volume versus its average. The company also carries high leverage and a rich P/E, so momentum from policy relief may be sensitive to earnings and legal updates.
- Negative Sentiment: Robbins Geller Rudman & Dowd announced an investigation into RH for potential securities law violations alleging misleading statements or omissions — introduces litigation risk and potential headline-driven volatility. PR Newswire: Robbins Geller investigation
- Negative Sentiment: Zacks Research downgraded RH from “hold” to “strong sell,” which could add selling pressure if other analysts follow or institutional holders react. Zacks downgrade
Hedge Funds Weigh In On RH
A number of institutional investors have recently added to or reduced their stakes in the business. Quinn Opportunity Partners LLC bought a new stake in shares of RH in the second quarter worth approximately $378,000. Norges Bank purchased a new position in shares of RH during the 2nd quarter valued at $29,083,000. Senvest Management LLC raised its stake in RH by 54.6% during the 2nd quarter. Senvest Management LLC now owns 733,894 shares of the company's stock valued at $138,713,000 after purchasing an additional 259,200 shares during the period. Intech Investment Management LLC increased its holdings in RH by 29.0% in the 1st quarter. Intech Investment Management LLC now owns 9,790 shares of the company's stock valued at $2,295,000 after acquiring an additional 2,198 shares during the last quarter. Finally, Twin Lakes Capital Management LLC bought a new position in RH during the second quarter valued at approximately $3,213,000. 90.17% of the stock is currently owned by institutional investors.
About RH
(
Get Free Report)
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.
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